The baby boomer generation or the middle age population remains to be the major hope of market experts in the U.S. jewelry industry. However, many of them draw attention to their children, the so-called “Generation Y.”
Born between 1978 and 1993, these 15- to 30-year-old young men and women constitute about 26 percent of the U.S. population and wield about $200 billion in spending power, according to a recent Diamond Promotion Service (DPS) presentation.
That spending power means this demographic group is a prime target for diamond jewelry marketing, DPS Vice President of Marketing Anne Valentzas and Planning Director Emmy Kondo said during the presentation.
Many retailers would tag the upper echelons of this age bracket as the perfect target for bridal, while those on the other end might be considered too young for diamond jewelry.
But as time goes by, the situation is changing
At Sarah Leonard Fine Jewelers (Los Angeles) Gail Friedman says a woman’s first diamond used to be her engagement ring. The Internet, advertising and the prevalence of celebrities in popular culture have all prompted women to become interested in diamond jewelry at a younger age.
Some 19 percent of the diamond jewelry purchased by this under-30 group is bridal, and those within the age bracket still constitute 61 percent of the dollar value for diamond engagement rings. But DPS statistics show that 81 percent of this group’s diamond jewelry purchases are non-bridal.
Kondo says women in this age bracket are buying a higher number of “incidental pieces,” or diamond jewelry that is not related to weddings or engagements.
This means that retailers should actively be marketing “non-bridal” diamond jewelry to young women, she says, or they could be missing out on a highly educated, potentially high-earning segment of the clientele.
DPS statistics show that salaries of women in their 20s surpassed that of men in the past seven years in some urban areas, including New York, where women now earn an average of 17 percent more than men, and Dallas, where women earn 20 percent more.
Single, empowered and out in the workforce, young women are not afraid to spend their money on diamonds, albeit at price-point averages below “bridal”.
DPS data shows that, on average, those between the ages of 18 and 30 spent $3,067 on diamond engagement rings, $1,313 on diamond wedding bands and $636 on non-bridal diamond jewelry.
At her store in Los Angeles, Friedman says she definitely notices the trend of young professional women buying diamond jewelry, particularly fashion pieces.
Among the long list of characteristics attributed to Generation Y are that they are global-, civic- and community-minded.
According to the DPS presentation, 66 percent of college freshman said it is essential or very important to help people in need. Additional DPS data shows that 69 percent of 13- to 25-year-olds consider a store’s social and environmental commitment when deciding where to shop, and 83 percent trust a company more if it is perceived as socially or environmentally responsible.
Most retailers don’t need a study to tell them one of the most obvious facts about Generation Y: They grew up with the Internet and stay wired round o’clock.
But, this doesn’t mean sales are lost to online retailers. DPS statistics show that sales from cross-channel shopping (researching online but buying in-store) are set to outpace e-commerce growth in the nearest four years.
Kondo recommends retailers expand beyond a Web site, perhaps by starting a blog or placing a page on a social-networking site such as Facebook.
Bejeweled babies are everywhere these days—including the covers of much-read tabloids—and many designers and manufacturers have seen a steady increase in sales of baubles for babies.
Jack Gindi, director and head designer of FuFoo’s baby division, says that since the company’s 2000 launch, he has seen a renewed awareness among retailers that the baby gift is part of being a fine-jewelry retailer.
The vast majority of the demographic that is shopping for baby jewelry, he says, are seeking gifts for special occasions, such as christenings, first birthdays and first ear piercings for baby girls.
Offering U.S.-manufactured children’s jewelry is becoming increasingly important, especially amid recent concerns over high lead content in children’s costume jewelry, says Alan Kaufman, president of Tru-Kay Manufacturing. Customers have told Kaufman that they are willing to spend more money on fine jewelry because of this issue, he says.
Rebecca Finell, principal designer and co-founder of Boon, sees the emerging “mini-mom” merchandising phenomenon expanding into jewelry, when moms who accessorize with jewelry want to make their daughters as cute as they are.
Bentelli President Maurice Wasyng says the most important thing retailers can do is make “display, display, display” their mantra, since baby jewelry is an emotional purchase and an attractive display can entice and inform.
