The suggestion that millennials are buying less diamond jewelry is wrong, according to De Beers Chief Financial Officer Nimesh Patel. The millennial group is even spending a much higher portion of their hard earned money on diamond jewelry compared to the previous generations.
Back in 2016, the idea that millennials were buying fewer diamonds was raised as The Economist magazine asked the question “Why aren’t millennials buying diamonds?”. In the article, it was described that millennials are a generation that is unable to get on the property ladder and are forced to rent into their 30s. Linking this to the reason why they are not buying precious stones such as diamonds.
In an interview with Business Insider, Patel explains why the idea of younger people not buying diamonds is so untrue as the demand among this group (age 18 to 35) is similar if not higher than the previous generation.
Looking at the facts:
- The millennials account for 45% of diamond purchases in the top 4 markets. This percentage is same or higher than diamond purchases done by the previous generation at that age
- The millennials are probably spending a higher percentage of their disposable income on diamond jewelry, despite the fact that they have not reached peak affluence yet
Nowadays the diamond jewelry purchases is not only focused on engagement rings, as diamonds are now also worn as a fashion accessory. Patel continues by sharing that millennials are more inclined towards the “self-purchase” of diamonds to celebrate their achievements and their successes. Resulting in the conclusion that millennials are not buying less diamond jewelry than people think, they only buy it more often for themselves.
Self-Purchasing Diamond Jewelry
This self-purchasing situation has become more popular in the market and accounts for 26% of today’s purchases. Companies are now even targeting their marketing on the self-purchasing group. Showing that diamond jewelry is not only for engagements but also for celebrating achievements, family, self-love or style expression.
Are you a millennial that buys diamonds for yourself or for others? Both can be emotionally significant purchases, but for slightly different reasons.