Millennials and Gen Z Dominate Diamond Demand

RAPAPORT... The surge in the size of the millennial and Generation Z agegroups has created key opportunities for the diamond industry, De Beers saidThursday in its 2018 Diamond Insight Report. Those two brackets accounted for two-thirds of global diamond-jewelrydemand last year, with millennials responsible for almost 60% of US sales, thecompany said. The oldest Gen Z consumers - aged 18 to 20 - bought 5% of all diamond-jewelrypieces in the US. The spending power of millennials - those aged from 21 to 39- will overtake that of Baby Boomers (aged 53 to 71) permanently by 2020, itnoted. Gen Z - those up to 20 - will come of age over the coming decades. "While both of these generations desire diamonds just asmuch as the generations that have come before them, there are undoubtedly newdynamics at play," De Beers CEO Bruce Cleaver said. "Those diamonds may now bein different product designs, used to symbolize new expressions of love andresearched and purchased in different ways to mark different moments in life." The miner identified three key areas that companies shouldfocus on to attract the new types of buyers. Millennials and Gen Zers stillwant to follow tradition in love and marriage, but increasingly seekpersonalized products and relaxed experiences that reflect their individualvalues and preferences, De Beers explained. While the bridal market represents27% of diamond-jewelry demand in the main diamond-consuming countries, youngercustomers are also interested in gifting diamonds simply as a sign of love orromance. That segment represented a further 12% of total demand in 2017. Marketers must also be aware of the generations' "always-on"attitude and demand for a seamless omni-channel experience when buyingproducts. Organic strategies - as opposed to paid advertising - resonate bestwith these consumers, especially if the marketing is authentic, funny andout-of-the-box, the miner added. In addition, millennials and Gen Z consumers both showstrong concern for social causes and responsible sourcing, De Beers noted. Diamondsellers should therefore be more proactive in communicating the good theindustry and their brands do throughout the world. They also want companies toshow them that their sourcing is ethical, rather than just tell them - makingtracking technologies such as blockchain more important. Diamond-jewelry demand grew 2% to a record $82 billion in2017, the miner said in May. "With the younger consumers' desire for qualities thatdiamonds can perfectly embody - including love, connections, authenticity,uniqueness and positive social impact - the most exciting times for the diamondindustry are still ahead of us if we can seize the opportunities," Cleaveradded.Image: A woman wearing jewelry by De Beers brand Forevermark. Credit: Forevermark/Instagram