Forty-five per cent of all diamond purchases in the world’s major markets are attributed to millennials, according to De Beers. They account for 59% of demand in the United States. The industry continues to grow for both new and historic brands. It is more important than ever to understand the buying habits of millennial and Generation Z buyers.
Bread commissioned an independent study of 500 millennials (U.S. consumers aged 23-35) on their jewelry buying habits. The results show how their preferences and approach to jewelry determine their behavior. It also undermines a number of generally accepted expectations.
Bread is working with retailers across the country to revitalize payments and transform the customer experience. Bread offers customized white label solutions. These are designed to maximize business impact by putting the retailer’s brand first and giving consumers flexible pricing options
Millennials want quality, a unique design and a brand
More than half of millennials (54%) plan to give jewellery as a gift for Valentine’s Day this year. What do they consider when making this purchase? When it comes to the jewellery itself, their top three factors are quality, unique design and a reliable brand.
Sixty-five percent of millennial buyers are most concerned about the quality of the stones and metals they buy, while 45% are most concerned about finding a truly unique design. However, 86% of millennials care about the brand of their jewellery – which may be a stronger indicator of the quality and design of their purchase.
Millennials clearly prioritize distinctive pieces when choosing a retailer, with 46% considering design to be one of the most important factors in choosing a jewelry brand. These millennials don’t just want a guarantee of quality or a high price, they want to find something truly special or personalized that expresses their taste and matches their personal style.
The millennials want diamonds more than anything else…
When they were asked which precious stones and metals they preferred, it turned out that diamonds were the best friend of millennials:
- 50% said they wanted to receive diamonds as a gift
- 41% said they wanted white gold
- 32% silver
- 31% sapphire
- Only 6% of respondents hoped to see palladium appear this year.
When it comes to how these stones and metals are produced, customers are divided. Forty percent of millennial buyers prefer their stones to be grown in laboratories. Twenty percent prefer stones that are mined. Surprisingly, two of the least important factors in choosing a jewelry retailer were whether their stones were ethically sourced and social responsibility. Millennials may be more aware of what they buy than other age groups. However, it seems that only a specific subgroup chooses their purchases for ethical reasons in the first place.
They want to finance their jewelry purchases
Fifty-four per cent of millennials plan to give Valentine’s Day jewellery this year. But only 41% of them can certainly afford the jewellery they want. If they can’t comfortably make that purchase on one pay cheque, they will look for other means of payment. ‘Buy now, pay later‘ financing can help put the gift of jewellery within reach. That’s why 69% of millennials prefer to shop at a jewelry store that offers interest-free financing. They are nearly five times more likely to shop at a jeweller who offers interest-free financing than at a jeweller who does not. Seventy-three per cent of millennials would opt for interest-free payments rather than a 5 per cent discount, when purchasing jewellery. This can be a huge incentive as an alternative to traditional discounts.
In the year 2020, it is imperative that you meet the demands of millennials as customers and offer them what they want.