CIBJO Urges Trade to Woo Gen Z-ers

RAPAPORT... Understanding the newest generation of jewelry-buyingconsumers is imperative for the industry to thrive, the World JewelleryConfederation (CIBJO) stressed last week ahead of its upcoming congress inBahrain. Members of Generation Z, which includes consumers aged 15 to25, will spend approximately $143 billion this year, and are the drivers offuture sales growth, CIBJO said in a special report. It is "absolutely critical [to] understand Generation Z andthe implications that this giant consumer group holds for our businesses andour industry," Jonathan Kendall, president of CIBJO's marketing and educationcommission and president of De Beers' Institute of Diamonds, explained in a special report. "The future success of the jewelryindustry will depend on our understanding the needs and wants of Generation Z." Most importantly, social media plays a huge part inGeneration Z-ers' lives, Kendall pointed out, noting that the industry needed toprioritize marketing by social media over more traditional methods. Jewelersshould also focus on offering mentorship and networking opportunities to thoseconsumers, 40% of whom would like to become entrepreneurs. About half of thosewant to invent something revolutionary. "Get this right and we can all look forward to strong,profitable years moving forward," Kendall noted. "Get it wrong and we could bedestined for the scrap heap - not overnight maybe, but ultimately." Secondhand shopping is also a popular trend with GenerationZ, whose members are more financially savvy and appreciate sustainability. Theindustry for previously owned clothes, shoes and accessories has risen 46% overthe past two years, Kendall continued, with demand for secondhand goods expectedto push the resale sector to $51 billion by 2023. Members of the jewelry industrycan capitalize on this trend by reworking old jewelry to produce new,sustainable pieces, offer vintage-jewelry items alongside their own newmerchandise, or collaborate with vintage brands to create retro products with acontemporary spin. "As an industry we sit in a really positive place forreusing," Kendall added. "But we need to market this aspect of our offering ina new way, so this generation will buy our products enthusiastically." Kendall also urged jewelers to create gender-neutral piecesand use diverse models in different sizes, colors and ages to reflect real lifebetter, noting that authenticity was a big selling point for Generation Zbuyers. In addition, pop-up stores can help brands create a local name forthemselves and build familiarity, increasing word-of-mouth opportunities. "Since jewelry is often entwined with life's milestones,like graduation and marriage, getting Gen Z to share their experiences withfriends is a huge opportunity," Kendall explained. Social responsibility is also high on the Generation Zagenda, and the group expects brands to do good things and support those inneed in their local communities, in addition to being environmentally friendly. "Gen Z is coming to our markets very soon, if it has notalready arrived in reality," Kendall emphasized. "So we better get them on ourside if we want to enjoy a rosy future." CIBJO will present these points in greater detail at itscongress in Bahrain in November. Image: Generation Z using social media. (Shutterstock)