The Changing Face of the Female Consumer

As symbols of longevity, eternity and strength, diamonds have been inextricably linked to love for decades. It’s therefore no surprise that more than half of all women’s diamond jewellery acquisitions are related to bridal occasions or given as gifts of love.

While this will remain the primary motivation for diamond jewellery purchases, it is clear that women’s roles in the workplace and in society are changing. As a result, their views on what it means to be feminine are adjusting and transforming, opening up new opportunities for diamond jewellery acquisition.

We looked in depth at three trends that demonstrate the changing ways in which women are participating in society. We considered how these are affecting their behaviour as consumers of diamond jewellery, both globally and in the world’s four leading diamond consumer nations (the US, China, Japan and India). And we explored how emerging female consumer trends interact with longstanding traditions and beliefs to create further growth potential

.INCREASED PARTICIPATION OF WOMEN IN THE ECONOMY
The number of working women has been on the rise for many years. In most member countries of the Organisation for Economic Co-operation and Development (OECD), the proportion of women aged 25 to 54 in the workforce continues to increase. In 1980, this figure stood at 54 per cent. By 2010, it had risen to 71 per cent, albeit with significant differences in the rate of growth between countries.

Today, in the US, 69 per cent of Millennial women aged 18 to 33 are in the labour force, compared with 78 per cent of men in the same age group. This is a significant shift from the Baby Boomer generation: in 1963, the participation of men aged 18 to 33 stood at 88 per cent, and women of the same age group at 41 per cent.

These trends are bringing about rapid changes in the relative earning power of the genders. Research indicates that 24 per cent of women in the US and 25 per cent in China are already earning more than their spouses. And it forecasts that more than half of all US households will have a woman as a major income-provider by 2025.

And it’s not only the earning power of women that is changing as a result of increased participation in tertiary education. Their role within the home is also evolving as their responsibilities as providers for their families increase. This is a role they welcome: research from the global marketing communications company J. Walter Thompson shows that 72 per cent of women globally say that they’re proud to be a good provider.

De Beers’ research shows that women are increasingly active purchasers of diamond jewellery. In 2016 in the US, 31 per cent of all women’s diamond jewellery was bought by women themselves.

Self-purchasing of non-bridal diamond jewellery pieces grew in the US by more than a third between 2005 and 2015, reaching 33 per cent.

THE ONGOING DESIRABILITY OF DIAMONDS
Increasing levels of self-purchase show that women’s wish to possess diamonds remains high across the world.

While women’s desire to be given diamonds is strong in all countries, those in China and India are keener to buy for themselves than their counterparts in Japan and the US. This is due to the aspirational nature of diamonds in emerging markets where the tradition of buying them is relatively new. The Indian Elites, the most affluent segment of society in India, is a case in point.

This group’s increasing affluence is leading a shift in traditional values, from a preference for gold to an increasing demand for diamonds. And, as the Indian middle classes continue to grow and increase their wealth, the country’s broader affluent consumer segments are likely to follow this lead. In fact, when women in all main diamond consumer nations are given a free choice of having anything from a list of aspirational and luxury products (regardless of cost), they report a high desire to be given or to buy diamond jewellery.

THE RETAIL OPPORTUNITY: WHO IS BUYING, WHAT THEY’RE BUYING, AND WHY THEY’RE BUYING

WHO?
The profile of self-purchasers
De Beers’ research shows that self-purchase in the US and Japan is more likely to be among married women, while in China it is the single women who acquire for themselves. Most self-purchasers in the three main diamond markets are aged over 35 and have medium to high income levels.

WHAT?
The pieces that women are buying for themselves
The most popular types of jewellery for self-purchase are rings across all markets. In China, rings account for more than half of all self-purchases. In the US, earrings follow close behind rings. While in Japan, necklaces are the second most common self-purchase.

WHY?
Profile of self-purchasing by occassion and motivation
Most commonly, self-purchase results from a spontaneous decision rather than being motivated by a specific occasion. This emphasises the importance of jewellery and the retail environment to stimulate impulse desire.

The motivations that drive diamond acquisitions differ by country. In the US, the top motivator is good price (23 per cent). However, in the remaining 77 per cent of purchases, the driving reasons are much more emotional. Emotional drivers are particularly powerful in China, with celebration of relationship and personal milestones topping the list, while Japanese women buy on impulse.

The story is different in India, where single women are likely to buy diamond jewellery once they have saved enough after starting work. These are often important ‘milestone’ purchases which give them a powerful sense of achievement. Married women in India buy for themselves to fulfil a long-held dream.

HOW?
Researching self-purchases
Often, self-purchasing is done on impulse and for no specific occasion. As such, significant proportions of self-purchases are made without any prior research, ranging from 21 per cent in China to 40 per cent in the US.

However, when it comes to planned acquisitions, the internet – with its ability to combine communications with selling – is a major source of information on brands, designs and prices, particularly in the US and Japan.

CHANGING FAMILY AND PERSONAL RELATIONSHIPS
The changing roles of women in the economy and society lead to changes in personal relationships. Modern relationships and marriages are increasingly based on partnership between individuals who seek personal growth alongside progress in their relationship. As a result, diamonds are being purchased to symbolise a more diverse selection of ‘moments’ in a life, rather than just relationship milestones.

NEW PERCEPTIONS OF MARRIAGE
Female economic independence is bringing about changes in how women view and participate in marriage and other personal relationships.

Despite cultural differences, there are some common attitudinal shifts in how women perceive marriage. In the US, for example, women no longer see either marriage or love as the be-all and endall. In fact, 73 per cent of US women don’t feel they need a partner to be complete.

The financial position is one of the reasons why people are now getting married later. This is happening most noticeably in the US and Japan, where the average ages for women at first marriage are 27 and 30 respectively.

As people in these countries are more mature when they first marry, they are increasingly entering marriage on a more equal footing – as partners who retain their individuality within the relationship.

This is helping them sense they have more choices, including the opportunity to focus on the growth of both individuals rather than the partnership itself.

In turn, this is helping to change attitudes and expectations when it comes to diamond jewellery.

LOVE GIFTING IN THE ERA OF THE MODERN RELATIONSHIP
While the growth of diamond jewellery selfpurchase by women has been noted as mentioned in Trend, love gifting and bridal acquisition still represent the majority of demand in the three leading consumer markets of the US, China and Japan. However, increasing female equity within a relationship, and changing attitudes to marriage and romantic partnerships, have led to a corresponding development within gifting behaviour.

There has also been a notable shift in diamond acquisition behaviour, from the traditional marking of linear milestones to spontaneously marking more ‘moments’ in life. One of the main drivers of this has been the expansion of gifting to celebrate a woman as an individual, rather than to celebrate the relationship.

Interestingly, diamond jewellery acquisition to celebrate a woman’s personal achievement is greater within the context of love gifting than within self-purchase. In the three leading consumer markets, men are more likely to acquire diamond jewellery for celebrating a woman’s personal milestone than women are to buy for themselves for this reason.

For men, diamond jewellery represents the ultimate gift for their partner. This superlative quality joined with a diamond’s uniqueness is particularly interesting when combined with the growing importance of individual growth and empowerment. Diamonds can give inner confidence and outer recognition. Many men now choose diamonds to celebrate their pride in a woman for all of her qualities and who she is in the world, rather than as a gift thanking her for the role she plays in their relationship and family.

In the more developed diamond-buying nations, the population aged over 60 is forecast to grow by a third between 2015 and 2030. This age group is expected to generate 51 per cent of these countries’ growth in urban consumption in this period.

This makes intergenerational gifting an increasingly important focus area for diamond jewellery companies. More than a quarter of diamond jewellery pieces gifted to single women in the US and Japan, and a fifth in China, are gifts from family members.

In India, where women are the main decisionmakers in almost all diamond purchasing, the position is slightly different. Unlike in other countries, gold and diamond jewellery is gifted by the families of newly-weds – not by the groom. And it is mothers and other female family members who make the choices.

When it comes to non-bridal diamond jewellery, more than a quarter (27 per cent) of diamond pieces in India are bought by women for other women – most often family members. The main reasons why women buy jewellery as gifts are to bond with another woman they care about and to celebrate a special moment with someone they love. These factors highlight a market opportunity created by women’s need for female bonding, including gifting from women to other women, both in the family and in a close circle of friends.

FEMINITY REDEFINED
Women are redefining femininity, away from the ‘sweetness’ of previous generations to combine strength with an essential grace. Diamonds are consequently becoming symbols of a wider range of emotions, including pride, joy and achievement. Meanwhile, as success becomes more about ‘who I am’ than ‘what I have’, the experiential element of the diamond acquisition process also assumes greater importance.

THE RISE OF THE MATURE SINGLE WOMAN

The increasing significance of the mature single female is one aspect of the new femininity that’s particularly important for the diamond industry in developed countries.

As discussed earlier, the over-sixties population in developed countries is forecast to grow by a third by 2030 and account for more than half of consumption growth in these locations.

Marketers are thoroughly acquainted with the importance of mature women in the marital gifting of diamond jewellery. However, the unmarried woman in her fifties or sixties is less well understood and catered for.

In the era of new femininity, this mature woman continues to be comfortable expressing her interest in relationships, dating and love. She is emerging as a specific non-traditional consumer segment in her own right.

For decades, diamonds have been marketed almost exclusively as gifts of love and symbols of marriage.

While this universal and powerful motivation will remain the bedrock of the industry, new opportunities are clearly emerging as the position of women in society and the economy evolves. The first of these opportunities lies with female selfpurchase. This has experienced rapid growth as female spending power has increased, and it offers exciting potential for well positioned products. Self-purchasers are mainly married women, are generally over the age of 35 and have medium to high income levels. While different approaches will be required in different countries – as motivations to buy and preferred jewellery types vary across the key diamond-buying markets – retailers who are able to encourage impulse buying through design, price or emotionally-driven marketing concepts will be likely to see success.

Second, retailers will have increasing opportunities to connect diamonds to a wider selection of life ‘moments’, as women have greater confidence to celebrate all the key occasions in their lives – not just those connected to their relationship. Success at work, memories of a happy holiday or simply ‘just because’ will become increasingly powerful reasons to buy.

Third, diamonds can symbolise a broader spectrum of emotions, and more can be made of the experience of acquisition, as the essence of womanhood is redefined. Alongside commitment and love, diamonds are being bought to represent emotions, such as optimism and pride. And providing younger consumers with more of an interactive buying experience, as well as a narrative they can share with friends, will bring further opportunities.

Fortunately, with a highly symbolic product that lends itself to individuality of both design and experience, the diamond sector is well placed to benefit from the changing face of the female consumer. But a collective effort from all parts of the value chain will be required to capitalise fully on the potential offered by the increasingly multifaceted modern woman.