Study: Why Millennials are Avoiding Luxury Jewelry Purchases

In Industry News, What's New by Accessories StaffLeave a Comment

Getting it right: Hearts on Fire

Getting it right: Hearts on Fire

Stevens, PA—The way many retailers and brands market jewelry, especially fine jewelry, to a new generation of consumers may be missing the intended target audience.

According to a new study of consumers age 14 to 34, the tried-and-true ways to marketing jewelry are failing to speak and connect to affluent Millennials.

“More than half a century ago, DeBeers hit a home run by convincing the returning WWII veterans eager to settle down and get married to mark the milestone of their engagement with a diamond. The ‘Diamonds Are Forever’ tagline worked well for that generation, which in turn gave birth to the gigantic Baby Boomer generation. And it worked equally well for the Boomers during the 70s and 80s, but the signs are that it isn’t working so well for the babies of the Baby Boomers –the Millennials,” says Pam Danziger, president of Unity Marketing and author of a new study, Marketing Jewelry to Millennials: How to Sell Luxury Jewelry to the Next Generation of Affluents. Millennials just aren’t buying the traditional jewelry marketing paradigm that worked for previous generations, Danziger says.

More Pleasure from Buying Tech

“They need messages that are relevant to their lifestyles and a generation that is delaying, even foregoing, marriage in growing numbers doesn’t necessarily care about researching the 4Cs or spending three month’s salary on a chunk of pressurized charcoal,” Danziger notes.

A recent survey among 1,335 affluents, 18% of whom are Millennials, revealed that affluent Millennials (aged 24 to 34 years and incomes $100k and above) derive far more pleasure from their technology purchases, than they do from buying fine jewelry. For example, some 46% of Millennials said buying technology is a category that gives them great pleasure, as compared with 25% who felt the same about jewelry. This finding is particularly relevant to jewelers since the commitment to pre-purchase research and spending levels are very similar for technology and jewelry.

Danziger says, “These Millennials would much rather drop $700 on the latest phone or tablet computer, than on a new pair of earrings or cuff links. Marketers and retailers need to discover how to change the conversation, so that buying jewelry is as fresh and exciting as the latest iPhone.”

That will entail coming up with new shopping experiences like Hearts on Fire, which is innovating to change the entire jewelry shopping experience through simple yet ground-breaking strategies, like putting the sales person and the customer on the same side of the display case. “Millennials want their purchase experience to feel more like a collaboration and less like a confrontation,” Danziger says.

Fine jewelry need no longer be confined to hushed studios, hidden price tags, and complicated information, Danziger notes. For the Millennials it can be—it HAS to be—fun and engaging, or they will walk right past the jewelry store and on to the next tech device.









It's only fair to share...
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInPrint this pageEmail this to someone