M uch has been said about the relationship millennials share with luxury, ergo diamonds. The millennial cohort in India and China alone is exceeding 400 million today, the largest this world has ever seen. We are not entirely sure if millennials look at diamonds the same way their parents or grandparents did, but what we know for sure is the fact that their opinion really matters. ‘The demand for diamonds has grown exponentially in the past few years. Millennials are slowly turning out to be the future of the retail industry. At the same time, millennials also represent one of the most important demographics in the jewellery industry. A very good example of the same is a diamond engagement ring; this piece of jewellery is very important as it introduces the young generation to diamonds, and helps them in creating a memorable experience with their loved ones,’ says Ketan Chokshi, Owner, Narayan Jewellers.
In its 2016 Diamond Insight Report, De Beers said that millennials have spent approximately US $26 billion on diamond jewellery in the four main markets in 2015 (US, India, China and Middle East). That kind of spending is definitely not reflective of a market that is indifferent towards diamond jewellery. So what then? Why is a conglomerate like De Beers willing to spend a whopping US $ 140 million on marketing alone? ‘Millennials are still 10 years away from their most affluent life stage and the generation comprises more than 220 million potential diamond consumers in the four main markets. The diamond industry therefore has a major opportunity on the horizon, but it will only capitalise on it fully if it continues to innovate and invest across the value chain,’ says Sachin Jain, MD, Forevermark India.
In a concerted effort to woo GenYers, the Diamond Producers Association along with De Beers has tried to charm its way into the minds of the young ones. In one of the ads, a girl disappears into the cornfields while her partner runs after her, they fight, there’s tension and a sense of inexplicable conflict. The chemistry is explicit,but the diamond is not – the luster of the diamond pendant on her neck is rather subtle. And she says, ‘Maybe we won’t ever get married, and maybe we will, but I will spend my future with you, and I will be honest with you, and it will be wild, it will be kind, and it will be real.’ This was the ‘Real is Rare’ campaign strategically targeted towards millennials, a far cry from ‘A Diamond is Forever’, a line that changed the face of the diamond industry, almost 70 years ago. The millennials don’t want to buy into the narrative that revolves around “permanence” anymore, and this is not to say that they are allergic to commitment – their views on relationship and marriage are vastly different. And their idea of self-expression could still mean indulging in something luxurious, but it doesn’t have to be diamonds; this is the biggest challenge the industry is facing today. ‘Millennials have multiple options to indulge in and today the millennial is far more educated, tech savvy and their understanding levels are higher as well. But the world is also changing and there are so many choices when it comes to jewellery. So multiplicity of everything is not something we can take lightly,’ says Shailesh Sangani, MD, Priority Jewels.
The first and the foremost thing to learn about the millennials is the fact that they believe in individuality. All signs possibly insinuate that millennials are subject to ‘herd mentality’, but this is anything but true. They don’t have anybody thinking for them, they do the thinking themselves and they definitely don’t need to be shown a path to follow. ‘It is not just in our industry, I think brands across the board are finding it difficult to retain millennials’ interest in products. Another problem we face with them is that they have a very wavering mind; they shift their loyalty from one product to another so easily. They read reviews, talk to their friends and then take an informed decision; it is not like they let somebody else take their decisions for them,’ adds Shailesh. Authenticity is what they are looking for and memories garnered through experiences have more value. ‘The previous generations used to invest in a lot of traditional gold jewellery as compared to diamond jewellery. The current crop of youngsters don’t like the look of traditional jewellery. Their clothing and accessorizing have become more westernized. Pure gold jewellery does not match with the millennial fashion, style statement. So as a matter of fact, I would say that they have shifted more towards diamond jewellery and hence the demand for diamond jewellery with millennials has increased,’ says Hardik Shah, Owner, BR Designs, manufacturers of diamond jewellery in India.
Millennials live at a time where materialistic things are ephemeral and everything from their phones to apps is constantly updated. They believe that their possessions should be one of a kind and rare. ‘The demand amidst millennials is certainly increasing year on year, because of the increase in disposable income of this generation. They are open to spending on luxury and are much conscious about the lifestyle they choose to live with. Millennials want the best and that too sooner in life. They like to invest in fine jewellery and love to flaunt the new styles every now and then in their circle,’ pipes in Shehzad Zaveri, Creative Director, Minawala.
It is also important to note that millennials grew up on consumerism and materialistic pleasures–in fact they have grown up with too many choices, something as basic as a breakfast cereal come in abundant choices and varieties. And this is primarily one of the main reasons why experiences trump materials. While in emerging economies like India and China, marriage is still considered a sacred institution, it is worthy to note that millennials are relatively getting married late and increasingly, those from the elite strata are going the ‘love marriage’ route. This brings us to a rather important point – millennials don’t really need an occasion to buy diamonds. ‘They represent a huge chunk of the working class, at the same time, they also represent the customer base that is getting married, also known as the social media generation. They do not look for any particular occasion when it comes to buying diamonds. On the other hand, millennials are seen buying diamond jewellery with a “no special occasion” in their mind,’ adds Ketan. This is good, within the context of diamond jewellery being bought throughout the year but if diamonds are slowly going to be losing their shimmer when it comes to occasions, then what will happen to markets like India that thrive on wedding seasons where bridal diamond jewellery have been a mainstay? ‘Millennials in India, once they are committed, their thought processes start changing. Their thinking is way ahead as far as escalating their lifestyle as a couple is concerned. There is a seriousness that kicks in and purchase of something that has enduring value, like diamonds comes in,’ says Shailesh. According to the De Beers report, non-bridal purchases of diamonds to celebrate an achievement or a personal milestone in the US, China and Japan still outnumber those bought for special occasions such as an engagement or wedding. And where is India in all this? Not too far off. So it becomes all the more important to make diamond jewellery more versatile. ‘Even in the Indian bridal jewellery landscape, where we traditionally see large pieces being bought, we are seeing an increase in millennial brides opting for wearable smaller elegant pieces as part of their trousseau. Keeping this in mind we are creating silhouettes of jewellery that can be divided into multiple pieces; which means it can be used as a large piece of jewellery or can be broken down to multiple smaller pieces of jewellery that can be used for different occasions. This gives the woman the best of both worlds,’ adds Sachin.
With affordability, value, individuality and social responsibility in mind, many millennials in the US are resorting to alternative stones – emeralds, rubies, sapphires and other semiprecious stones are increasingly becoming popular amongst brides, not to mention the steady awareness and demand created for lab-grown synthetic diamonds.
Design with Purpose
Baunat, a Belgium-based diamond brand has
collaborated with a 3D printing company to
create a platform where individuals can design
their own necklaces. Just a few hours
away, London based designer Stephen
Webster has been creating jewellery
inspired from modern/relatable motifs
using unconventional gemstones like
bloodstone, black sapphire and bull’s
eye along with diamonds. More designers
are creating jewellery that is wearable using
geometric patterns and avant-garde motifs like
emojis or repurposing vintage pieces to create an
amalgamation of modern and traditional pieces
all around the world. In its report, De Beers said,
‘Combined with trends of single women acquisition,
self-purchase and the younger woman’s desire
for self-expression, design appeal is expected
to become more important in attracting new and
repeat customers to the category.’
In 2015, Aurate emerged in the market, a New York based brand that retails affordable and ethically-sourced fine jewellery in vermeil, solid gold and diamonds. The brand also allows the buyer to customize her jewellery with options between white or yellow gold and between diamonds or rubies. The designs are sleek, light weight and practical and the emphasis is on transparent pricing and ethical sourcing. A more diamond specific brand is again the New York based Noémie that sells minimalist diamond jewellery pieces in affordable pricing. ‘Research shows that millennials are into long earrings and minimalistic pendants. They are not into bangles but tennis bracelets are a big hit among them. They definitely are into brands but they also want to wear jewellery that expresses their individuality and style and pieces that also have emotional and sentimental value attached to them,’ adds Hardik.
They want their jewellery with a story that also reflects their creativity and eccentricity and are increasingly choosing colourful stones such as rubies, emeralds, sapphires,’ says Ketan.
Heritage, fine-jewellery brands may have come into the picture a little later, but they have certainly picked up the pace. Tiffany for instance saw its net sales decline by 3 per cent in 2016 and despite being considered a brand that is often tied to exclusivity and legacy, much of its decrease in sales was attributed to its inability to reach a younger audience. The Tiffany T, Elsa Peretti® and the latest HardWear collections which were strategically partnered with the likes of Lady Ga Ga and Zoe Kravitz are all designed keeping the millennials in mind. High jewellery brands like Bulgari are also making a genuine effort to target the more affluent, millennials with very high disposable incomes, with its fresh designs festooned with diamonds, emeralds and sapphires. The gorgeous Bella Hadid, a fashion icon who again is known to have a massive millennial fanfollowing, sports the Bulgari Fiesta necklace in diamonds with the breathtaking Venice at the background.
Marketing to Millennials
China and India put together has over 400 million
GenYers. It is a massive cohort and to treat all
of them with the same marketing message is
blasphemy. The youngest millennials (19-24 years
old) are either right out of college or have just
begun to work; De Beers in its report says ‘at this
stage they need the freedom to discover their own
paths, so love and diamonds are about fun and
excitement.’ The ones aged between 25 and 29 are
still shaping their opinions about relationships,
commitment, marriage, career, money and the
like. De Beers points out again, ‘they become
increasingly focused on gaining recognition and
respect through their knowledge, achievements,
wealth and status.’ Finally, the oldest millennials
who fall between the age group 30 and 34, have
defined goals and aspirations, and according to
De Beers, ‘diamonds become a symbol of the safe
harbour and harmony in the family.’
Influencers, particularly micro-influencers have had a proven track record with millennials. Tiffany roped in celebrities and unleashed a number of influencer-driven campaigns to appeal to a younger audience for their more affordable collections. The brand also got on board Alexa Chung, a known millennial favourite, to host some of its events. The Lady Gaga partnership for its newest collection HardWare alone garnered 827,493 likes and comments. Understanding that self-expression and individuality is more important than status, Tiffany, a brand known for its legacy wants to change its perception as a “gift-giving” brand to self-purchasing brand. ‘As a retailer, it is very important for us to stay updated with the current trends, and the likes and dislikes of the millennials. We have been styling a number of celebrities in the past, and are continuing to do so. This has garnered us a lot of social media attention, hence the customers. Besides that, product placement in magazines along with advertorials has also helped us in expanding our user base,’ adds Chokshi.
True, millennials are digitally savvy and they prefer making purchases online but that doesn’t mean brands don’t have to offer one-of-a-kind in store/shopping experiences. The digital promises have to be supported by brick and mortar spaces that are up to the mark. Aligned with this strategy, Tiffany recently inaugurated the Blue Box Café (in its signature hue of course), in its flagship store in New York amidst influencers and celebrities. Jewellery is not the same as apparel and with the older millennials especially, in store, personto- person channel is still the preferred way of purchasing. De Beers insists in its report, ‘When it comes to shopping, Millennials use online methods alongside visiting traditional brick-andmortar stores. They will often compare prices online, search for product information and look for discount coupons and promotions online. Omnichannel shopping experiences are now the norm for younger consumers. Retailers who are not equipped for this will lose out among this client base.’ ‘Today as well as in the future, multimedia is the only way to go. No one single channel will help brands. They are everywhere – in the internet, in a movie theatre or loitering on a high street, so it is important that brands adopt an integrated approach. The Netflix generation also goes to movie theatres and we can’t miss out on that,’ says Shailesh.
Millennials are an important cohort for the diamond industry and a majority of them are about to either get married or reach their financial peak – the competition from other industries cannot be ignored and the ones that offer experiences definitely pose a threat to the industry. But it is also an interesting time to be in, as the digital era offers a plethora of opportunities for brands to align themselves with the right marketing mix. The fact that diamonds are not restricted to occasions anymore is great news, as it presents an opportunity of more product development. Having said that, brands need to find a way to make diamonds a priority in the minds of millennials and the only way to achieve this is to offer unique designs combined with tailor-made marketing. ‘The rise of digital marketing is changing the way luxury brands engage with customers, and traditional companies must embrace what is now possible in today’s connected and mobile world. Digital media is more measurable than any other form of media we do. It is not just about huge reach numbers, it is about creating engagement, understanding our customers’ journey, and then delivering relevant content along the way. Digital marketing may appear to be about technology, but it only works when the human interaction underlying it is right, especially for brands like Forevermark that seek to engage on emotions,’ says Sachin.
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