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Sustenance and Growth of Consumer Demand Starts with Understanding the Consumer

Published Date : Sep 29, 2017

In order to sustain and grow consumer demand, one must first understand the consumer, and, the consumer, in this case, has arguably never gone through the kind of transformation she has recently. The De Beers Diamond Insight Report 2017 sums up beautifully for the diamonds and jewellery industry, the key transformations observed in women, of recent.

Some powerful insights about today’s women brought forth by the Report:

  1. Significant relationships are now much more about the growth of the two equal individuals, as much as they are about the growth of the partnership itself.
  2. As marriage generally comes later in life, and as it is seen as a union between two equal individuals, women are receiving diamonds for multiple occasions both before and after marriage.
  3. There has been higher degree of self-purchase than before because of increasing spending power at the hands of women, who are very successful and independent today.
  4. Even when women are not buying for themselves, their influence on purchase decisions remains.
  5. Women now perceive themselves with a sense of strength and empowerment.
  6. Besides love and commitment, which remain universal and powerful emotions symbolised by diamonds, emotions such as joy, optimism, pride and confidence are important today.
  7. While traditional diamond selling occasions – such as engagements and anniversaries – remain very important, successful diamond marketing will increasingly need to reflect a range of significant moments in one’s life. This may include a new job, memories of a happy holiday or ‘just because’, and should be connected to the experiential element of lives and relationships.
  8. Most commonly, self-purchase results from a spontaneous decision rather than being motivated by a specific occasion.
  9. Gifting within the family – particularly by older to younger members – is an important part of the global diamond jewellery sector.
  10. Success is increasingly defined by the acquisition  of knowledge and ideas – not material goods.
  11. 76% of women say that brands do not currently represent them.

 

Reasons people decided not to buy can be converted into opportunity:

Some insights here are: Not being gifted; Failing to find appealing designs; Not experiencing an appropriate event to acquire; No opportunities to wear diamonds

Some Takeaways for Retailers, Advertisers and Marketers, based on the De Beers Diamond Insight Report 2017:

  1. The female self-purchase category presents great opportunity. Products should be positioned well. Self-purchasers are mainly married women, most over the age of 35, with medium to high level of income. Since impulse buying is high in the category, design is an important element to capture this category. The retail store experience is also important.
  2. Advertisers / Retailers should create a connect with a larger number of “life moments”. Increasingly, both gifts and self-purchase are driven by life moments. These could be: Overcome difficult time at work, New job; Memory of trip; Valentine’s day; Thank you; Coming of age; First job; I can afford it now; Big birthday; Anniversary; Birth of child; Graduation; Promotion; Early commitment; Pregnancy; Inheritance purchase, etc. 
  3. Encourage women to have greater confidence to celebrate all the key occasions in their lives – not just those connected to their relationship. Help women embrace the possibilities, not the responsibilities, of being a woman.
  4. Use strong role women models in advertising.
  5. Provide younger consumers with more of an interactive buying experience, as well as a narrative they can share with friends. This will bring further opportunities.
  6. Most of all, to connect with women of today, one must connect with their new identity symbols: Uniqueness:  Being different, creative and original; More self-directed; Perceiving themselves as having more substance.

The efforts of the DPA and other bodies towards generic marketing have been commendable, and spot-on in appealing to Millennials. All retailers and other segments of the value chain need to do is take lead from this. Create contemporary designs, use technological advancements to advance manufacturing capabilities, strike conversations with consumers in places they are hanging out, and most of all – Appeal to the new sensibilities of the socially evolved and powerful woman of today.

As corroborated by the De Beers Diamond Insight Report 2017, 2016 has not been a bad year at all. Consumer demand for diamond jewellery saw marginal growth, driven by strong performance in the US, where demand exceeded US$40 billion for the first time. The fact that rough diamond demand also increased in 2016, shows that the mining sector did in fact jump in to take enough action after the events of 2015, where manufacturers could not afford the rough prices and all but stopped buying and stocking. Let’s never forget that every part of the pipeline must realise that it cannot survive without all other parts thriving. Beyond the all important exercise to appeal to the customer, let’s not also forget to look to establish more sustainable models for the mid-pipe.

Download De Beers Diamond Insight Report 2017 at: http://www.debeersgroup.com/en/reports/insight/insight-reports/insight-report-2017/foreword.html

- By GemAtlas Team