Are lackluster holiday sales in the U.S. insinuating the fact that diamonds are not in millennials’ radar?

Almost every conference, seminar or talk show that focuses on diamonds and their inimitable rarity concentrate on how the industry can promote diamonds amidst millennials. The issue is spoken about so often that even the mention of the word millennial gets a “not again” reaction from the audience and all the other stakeholders. But the reality is very simple – millennials need much more than coaxing when it comes to getting them to buy diamonds.

The Business Insider reported that Jared, Kay and Zales had sluggish holiday sales, if that won’t raise an alarm, we don’t know what will. It also stated that Signet Jewellers that owns Jared, Kay and Zales reported that its same-store sales were down 1.3 per cent for the nine weeks leading up to January 5, 2019. The report also mentioned that ‘While it's not clear whether or not store closures are imminent, the holiday sales numbers certainly make for gloomy news for the jeweler giant.

Things are not very different with Tiffany & Co as well. Early this week the company released a statement showing a 1 per cent decline in global sales. Legacy brands like Tiffany & Co and Chopard are continuously trying to pick up the pace of their marketing initiatives when it comes to millennials; recently they roped in Elle Fanning and Rihaana as brand ambassadors, both of whom have a strong appeal with the millennials.

High jewellery brand Cartier has re-released its Panthère collection on Net-a-Porter. Tiffany & Co sells pieces from its entry-level prices on Net-a-Porter like its T-wire bracelet and T-smile diamond necklace. Product personalization, opening up new distribution channels, experiential marketing, effective promotion and other service offerings are constantly being embraced by diamond jewellery retailers to engage with younger audience, who unfortunately have more than a few ways of spending their money.

De Beers’ stand is quite clear – it states that the younger generation is buying more diamonds. While the news is encouraging and motivating all the same, it is better to tread with caution given the current state of affairs. With the hope that diamonds have not lost their charm amidst millennials, we also need to adopt a robust marketing and promotional plan, one that involves better in-store experience, renewed product offerings, exciting omnichannel experience, engaging communication channels and more.