Sales Strategy
Study: Millennials, Gen-Z Best Valentine’s Day Sales Target For Jewelers February 10, 2021 (0 comments)
Washington, DC—Even though affluent Boomers and Gen-Xers are better jewelers’ biggest revenue drivers, they’re not the ones most likely to be shopping for an expensive Valentine’s Day gift, according to a new study from MedicareAdvantage.com. Image: Diamond heart earrings from Chopard, via Natural Diamond Council.
Instead, that honor goes to Millennials, who spend an average of 40% more on a Valentine’s Day gift for their partner than Boomers do, and who place more importance on the value of the gift as well. But even more interesting is that Gen-Z, those under-25 younger siblings of Millennials, are likely to spend more on jewelry gifts than anyone else!
Jewelers know Valentine’s Day is a very popular time to get engaged and the COVID-19 pandemic has driven couples to get engaged and cement their emotional commitment.
Apart from engagements, Valentine’s Day is still not a high-spending holiday: Millennials (ages 25-40) spend an average of $129 across all categories, compared to $119 for Gen-Z (up to age 24) $101 for Gen-Xers (ages 41-57) and $92 for Boomers (age 58+). But when it comes to jewelry gifting, Gen-Z leads the way with an average spend of $282, vs. Gen-X’s $271 and Millennials’ $269. Boomers, meanwhile, are the jewelry cheapskates, spending only an average of $180. (The study did not break out fine vs. costume jewelry.) Across the board, jewelry was second only to a romantic getaway (travel) in spending—something that in the pandemic might not be an option, as jewelry sales last year reflected.
Does comfort breed familiarity? The study shows couples who have been together for a long time (or who are not satisfied in the relationship) are the lowest Valentine gift spenders. Even when it comes to dining, the study says those in a relationship between two and five years’ duration will spend 79% more on a Valentine’s Day dinner than those who have been in a relationship for 16 years or more.
Finally, in a statistic specific to current events, three in 10 couples are planning to spend less for the holiday specifically because of the COVID-19 pandemic.
The study was conducted online on January 29, 2021. The total survey included 1,000 respondents who are currently in a romantic relationship or married.
Here are some study highlights. The top chart shows the breakdown of generational and category spending, and the bottom chart explains that Millennials and men are most likely to feel that the cost of a Valentine's Day gift is extremely important. All charts, MedicareAdvantage.com.
