RAPAPORT... Optimistic, confident and passionate — these are the traits of a group billed as Generation Y, Generation Next, Millennials, the Digital Generation, Boomlets, Netizens and the Gaming Generation. A presentation, “How Do Young Adults Shop for Diamonds? — Everything You Need to Know,” by J. Walter Thompson’s Diamond Promotion Service (DPS) at the American Gem Society’s (AGS) International Conclave in Seattle explained how future diamond shoppers will differ significantly from the clients of today.
A UNIQUE WORLD VIEW
When DPS talks about young adults, it is referring specifically to the generation born between 1978 and 1993 who are 15 to 30 years old right now. These 77 million sons and daughters of the Baby Boomers population — compare that to only 40 million GenXers — represent about 26 percent of the U.S., with a spending power that exceeds $200 billion, according to DPS research. A media-saturated bunch, they were the first to grow up online, and they have so far seen nothing but prosperous economic times. Forget when Kennedy was shot — this group’s defining moments include 9/11, Columbine, Enron and the war in Iraq.
Millennials differ from previous age groups by several noteworthy traits, according to Conclave presenter Anne Valentzas, vice president of marketing at DPS. Gen Y was raised in child-centered homes by “helicopter parents” who were always hovering, and grew up scheduled and pressured to achieve. The result has been a generation more sheltered, yet confident and team-oriented, than ever before. They have more conventional values than their predecessors, with little inclination to rebel. They also report being seriously concerned about employment prospects as early as high school. Teen angst may be on the way out — in 1974, 48 percent of teens reported “no problems” with any family member; but today, the number is 82 percent. The Digital Generation is also the most socially conscious consumer group the U.S. has ever seen. In the past year, 81 percent of Millennials volunteered their time, and 83 percent trust a company more if it is perceived to be socially and environmentally responsible. These shoppers are also highly luxury-driven, and express themselves with an approach to style that mixes high-end brands with lower-ticket items.
BEYOND BRIDAL
Co-presenter Emmy Kondo, planning director at DPS, was quick to point out that retailers shouldn’t relegate this group strictly to the bridal category, despite the fact that they are the most marriage-minded generation in decades. Even if they don’t own many pieces now, Millennials have the strongest intent to buy diamond jewelry in the next one to two years over any other age group, with the highest figures among 22- to 26-year-olds. Parents are key gifters for Generation Y, and heavy owners — who possess eight or more pieces of diamond jewelry — are significantly more likely to have been given their first piece by their parents.
CITIZENS OF THE WEBTrue to their name, the Digital Generation spends ten hours online weekly. Here is a group that frequently engages in “cross-channel shopping” — researching products online, then flocking to brick-and-mortar stores for an in-person shopping experience. Unfortunately, jewelry ranked dead last among 22 categories in a survey of recent cross-channel shoppers by Forrester Research. Meanwhile, social networking — on sites such as Facebook and MySpace — now exceeds online searches in activity and popularity. Valentzas and Kondo stressed that jewelers need to engage young shoppers with things to read, watch and participate in online. Citing YouTube’s popularity, the presenters contend that young consumers will be attracted to a site that posts videos — perhaps showing customers getting engaged, how jewelry is made or in-store events. Another idea is to encourage consumers to vote on their favorite styles — perhaps before ordering new inventory.
Blogs are also important vehicles for stores that strive to appeal to Millennials. The word blog is short for weblog, and it describes an online diary that the writer can update whenever he or she chooses. Blogs can provide news, talk about trends, make announcements and supply information. For retailers seeking a strong web presence, blogs also tend to improve online search results because search engines such as Google love to direct people to them. These web entries can also elevate the blogger to the status of an expert in the field. Though blogging entails an investment of time — blogs must be regularly updated in order to draw and retain an audience — this forum is as affordable as $6.95 per month. Kondo and Valentzas encouraged retailers to get help by inviting designers, lab experts, insurance professionals and passionate clients to be guest bloggers.
While only 6 percent of consumers state they believe advertising claims, more than half of consumers changed their purchase plans due to the recommendations of others, according to the same survey by Forrester Research. Valentzas and Kondo offer that a great way to capitalize on this information is to allow customers to comment on your products and services with online reviews. It may sound risky, but even negative reviews help stores learn about consumer needs, and publicly dealing with any problems in an adept manner can improve a store’s credibility.
For jewelry in particular, design-it-yourself (DIY) programs can entertain potential shoppers. Valentzas recalled a store that let consumers play around with a DIY program and received enthusiastic response, despite the fact that most clients designed a standard solitaire ring with no side stones.
ENTERTAINMENT SEEKERS
Based on their research, the DPS Conclave presenters recommended many ways to attract Generation Next offline, as well. Young shoppers are “retail-tainment” addicts who relish the ability to play and try on, so Kondo and Valentzas are fans of Stuller’s new ring displays, which allow consumers to try on tethered rings unassisted. (Call
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Be sure to provide plenty of mirrors and lighting options, as Millennials delight in fantasizing about using products in a variety of scenarios. This generation is the most design-conscious ever, and the presenters pointed out that when just 10 to 20 percent of a store’s total stock is made by fashion-forward designers, it will improve consumers’ perceptions of a store, regardless if they actually buy those items or not. Since this group cares so much about authenticity and ethics, it is important to ensure that all store employees are ready to talk about the Kimberley Process and the good that diamonds can do for Africa. Any hesitation on the subject could send these shoppers running to the competition.
Valentzas and Kondo assured their audience that there is much to look forward to in the ardent diamond shoppers of the coming decades. Generation Y is primed to challenge retailers to transform shopping into a total product and brand immersion. Right now, the race is wide open.
Article from the Rapaport Magazine - May 2008. To subscribe click here.