Jewelry ECOMM Tech
Marketing to Millennials: How to Sell Jewelry to Younger Consumer Groups March 27, 2019 (0 comments)
It seems like jewelers are led to believe that marketing to millennials or selling jewelry to younger consumer groups like the millennials and the Gen Z is a hard nut to crack. However, with the jewelry industry predicted to grow continuously during the forecasted period of 2019 to 2023, does it ever make you ask why millennials are not buying diamonds?
Or maybe they do! In the recent Luxury Brand Favourites of Millennials, the MVI Marketing has revealed that millennials have a penchant for Tiffany & Co and Cartier; hence, naming them as two of their favorite luxury brands when buying jewelry. In addition, De Beers has also found that 45% of all diamond purchases in major markets like China, India, and the USA, are attributed to millennials. Those reports show that indeed they do, but they only buy from those jewelers and jewelry companies that understand who they are and what they need and want, especially being a generation of experience and not of possession. If you’re still strategizing on how to maneuver the shift in preferences, stick with us, and we’ll help you crack the new consumer puzzles that are also known as the millennials and the Generation Z. Read on and adapt!
- Millennials are those born between 1981 and 2000 and can be grouped into two: The younger millennials are aged 21 to 25 while the older millennials are those aged 26 to 39. Meanwhile, Gen Z are those born after 1996 and aged 0 to 20.
- Millennials’ spending power is said to be growing and expected to exceed US$4 trillion collectively by 2030.
- The Chinese millennials are said to become more powerful consumers than their US counterparts by 2035.
- As reported by De Beers, millennials drive 80% of diamonds jewelry demand in China and 60% of those in the US.
This shows that understanding their preferences, values, lifestyle, tastes, and desires is essential for your jewelry business to soar high in today’s digital world.
How To Do It
Marketing to millennials to make them buy requires a thorough understanding of consumer psychographics. As a marketer and/or a jeweler, you must learn to speak in terms of psychographics as it offers deep insights that you could use to complement your knowledge of the targeted demographics. With the help of today’s technology, you could use both data to establish a marketing strategy that would transform them into actionable insights. Consider the insights below when adapting to their evolving needs and wants.
1. Know their taste and desire, and build your proposition around it
According to De Beers’ Diamond Insight Report in 2018, millennials and Gen Z are not different from the older generation when it comes to their view of love, which encapsulates the desire to have a stable family, to strengthen the commitment, and to keep the romance alive through traditional but creative gestures.
This means that while their traditional view of love offers greater opportunities for jewelers to make the younger generation appreciate the value and uniqueness of diamonds as a symbol of their love; it also opens a gap that is free for the taking – a gap waiting to be filled by jewelers who can meet their demand for personalization, informality, and fun.
For instance, sticking with the traditional solitaire ring only might not make them buy. Brides want to have a say in the design of their jewelry pieces, so let them take control of the process, and they will come to you.
However, there’s a danger in clustering them all in one psychographic data without regard for demographics. While diamonds remain to be the most popular choice in bridal events, the preferences in style might differ across various markets. For instance and as reported by De Beers, a solitaire engagement ring is the most preferred in China while those in the US are open to a broader range of styles. In this case, you have to know their taste and desire and then, match it with the demographic insights you have to come up with an excellent marketing proposition.
2. Persuade them that diamonds are for all types of love and take advantage of non-bridal gifting
3. As digital natives, millennials and Gen Z expect a seamless retail experience no matter the touchpoints
4. Millennials love videos!
5. The younger consumer groups are involved in social issues and pay attention to environmental concerns and ethical trading
Do you know that only 48% of polled millennials believe that business, especially big corporations, behave ethically? This was lower than the 65% of millennials who believed the same in 2017. More than anything else, it signifies the millennials’ declining trust in big businesses.
Meanwhile, 26% of Gen Z are less likely to deal with businesses that disregard environmental concerns or display unethical trading practices. Both of these statistics are a proof that ethical considerations influence their buying behaviour.
The diamond industry is rife with ethical, social, and environmental issues. The way to woo your younger consumer groups is to boast your eco/green credentials. For instance, in 2018, Tiffany & Co ranked the highest in the Human Rights Watch’s (HRW) #BehindtheBling report where the HRW assessed and ranked leading jewelry brands for their treatment of local workers and their supply chain practices. Tiffany & Co, which received a “strong” rating emerged on top (nobody got an excellent rating) for its ethical sourcing while Cartier, Pandora, Bvlgari, and Signet Jewelers all received a moderate rating.
If your jewelry materials are responsibly sourced, make sure that your potential buyers know. This is your chance to appeal to these socially-conscious consumer groups.
Are you convinced now that millennials and Gen Z are the present and future of the jewelry industry? How do you attract these experience-obsessed generations to buy and wear your jewelry pieces? Feel free to share some tips in the comment section below!