Studies Show Desirability of Diamonds by Millennials and Generation Z
The National Diamond Council performed a desirability study on 5000 participants aged between 18 to 39 years. The research showed that diamonds remain the top tangible asset that is desired the most among both Gen Z and millennials. This was after the participants were provided with nine different choices and asked to rate them, assuming they did not have budget restraints.
Part of the reasons why both generations chose diamonds was that the stones still held a special place in signifying love and connection. The participants also agreed that natural mined diamonds are unique and one of a kind. On both generations, holidays and vacations ranked as the topmost desired intangible product.
Many of them had made a jewelry purchase that contained diamonds within the last year among the participants. The purchases were either made for themselves or for loved ones. The majority of the consumers, 72%, were females. Compare this to 23% of men who claim to have bought at least one piece of diamond jewelry for themselves.
Of the jewelry bought, 50% of the pieces had natural diamonds. The women explained that the main factors influencing their decisions are the jewelry design followed by how versatile and how unique it appears.
Women said that the main reason for purchasing diamonds was the design at 51% (they found a piece that they really liked). The second most popular reason by women at 49% was that they could wear diamonds every day. Finally, there was long term style and value at 46%.
Of those who bought diamonds in the last 24 months, 80% were men who purchased the precious stones for their significant others. Women mostly bought diamonds either for themselves, their children, or for their mothers.
The main reason for using diamonds as gifts to loved ones was because of their lasting value. Most of the purchases were to signify an important life event at 89%. Of these, engagement and wedding stood at 25%. Annual events such as anniversaries, mother's day, Christmas, Valentine stood at 72%. The birth of a child stood at 17%. However, up to 25% of the purchases were for no specific reason.
Of those interviewed, 37% said they planned to buy diamond jewelry within the next 12 months. 27% also said that they expect to get a diamond jewelry gift within the same duration. With such stats, the future of diamond buying seems promising.
Social media has a huge role to play in influencing jewelry purchases. Millennials and Gen Z spend a lot of time on social media where they can get inspiration. It is not surprising because most consumers will begin by doing their research before making a purchase. They will likely consider 4 or 5 aspects of the jewelry before they make the final decision.
In one study, 66% of the participants said they compared their pricing online, while 26% searched for social media inspiration. 24% got their inspiration from reading articles online.
When it comes to making the actual buy, the majority took place from physical stores. Up to 28% of the purchases were made online. Most of the in-store purchases were made from independent stores compared to well-known brands such as Kay Jewelers.
The goal of this study by the National Diamonds Council was to first find out about the desirability of diamonds and reinforce the category's sustainability. During this period of the COVID 19 pandemic, consumers continue to uphold and value items that have emotional significance. The study proved that young people in the millennials and generation Z both value diamonds.
In one study by De Beers, millennials accounted for up to 41% of all diamond jewelry purchases. This was surprising, considering that millennials constitute 27% of the general population. The diamond producers association also found that millennials consider diamonds to be an excellent or very good value for their money.
The biggest chunk of the consumption of diamond jewelry was in the form of engagement rings. Even while the unique colored and no traditional stones continue to grow in popularity, millennials' largest percentage of engagement rings had diamonds.
More than 49% included a round cut diamond. Twenty-two percent included the princess cut diamonds and the cushion cuts at 11%. The most popular jewelry design included a center stone with smaller stones set around it.
Generation Z, which makes up 35% of the world's population and constitutes people born from 1997, is responsible for up to 5% of the diamond jewelry demand. Gen Z and millennials both hold love in high regard and are especially self-expressive.
While they have their similarities, they also have their differences. Millennials are less trusting when it comes to consumption, while Gen Z is more optimistic. Love is a significant driver of diamond sales. However, both Gen Z and millennials want to express their love in their own unique and individual ways. This is why sellers need to focus more on customizable offerings. They are more likely to check the designs, brands, and pricing before making a buying decision.
Millennials were mostly born in a time of plenty and are therefore more carefree in their spending. Generation Z is mostly born during a recession, which means they have been taught to be more careful with their finances. They are also more ambitious.
Companies and sellers must be able to appeal to millennials and generation Z social consciousness. They are, after all, sensitive to matters such as ethical sourcing. And considering that a larger portion of the market constitutes of the younger generation, this can help sellers and jewelry dealers stay ahead of the game.
Some of the more important factors with both millennials and Gen Z include a focus on love and commitment, having values, and being conscious of global situations and events. Have a value of not just the products on offer but also the experiences. All these are factors that diamond and jewelry sellers need to focus on to win the favor of both Millennials and Gen Z.
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