The consumer buzzword is “value” and it is a highly personal thing. It’s
not just about price, but what you’re getting for the price – quality, style,
novelty, personal meaning, and a custom experience all create the value today’s
consumers want.
“Jewelry marketers must be willing to challenge old strategies and create
new designs at new price points to be sold in new ways,” advocates retail
consultant Kate Peterson, president of Performance Concepts, Montgomery
Village, Maryland. She cites the decline of the Baby Boomer demographic. For
every Boomer who drops out of the buying pool, two consumers from the next
generation (age 18 to 45) are taking their place.
“What worked with the Boomers is not relevant with the next generation of
consumers who are more educated, have more choices, and don’t mind waiting to
get what they want,” emphasizes Peterson. She notes that consumers are not
caught up in brand names as much as what the brand represents, providing
jewelers with lots of opportunities to bring in new designers and generic
brands that complement their identity.
Value is important across consumer segments. Even high-income consumers,
who can afford what they want, are buying a broader range of products—opting
for less-expensive metal and gem options with great design—from a more diverse
group of retailers, reports Pam Danziger, president of Unity Marketing in
Stevens, Pennsylvania.
According to Unity’s chief consumer economist, Tom Bodenberg, the current
cultural climate does not support showy displays of luxury. “Affluents are
reluctant to overindulge in extravagant spending. People with means want
to make smart buying decisions; playing up the quality and value of a brand
while downplaying the pure ‘luxury’ of it is key.”
Among the market’s top sellers, according to post holiday reports, are
moderately priced fashion styles with an emphasis on color (gems and pearls),
sterling silver, bridal with diamonds and gems, custom work, and customizable
design options.
Danziger advocates jewelry marketers across the board create strategies
around the features, benefits, and experiences consumers are willing to pay
more to get. She cites Leo Schachter Diamonds as an innovator in creating value
for its customers by positioning the diamonds it sells beyond the 4Cs. “They
introduced the concept of brilliance that customers can see and experience.
Rather than having them look through a loupe to try to
see features that only a trained jeweler can really distinguish, Leo Schachter
Diamonds translated the concept of cut into what it means to
customers. Brilliance makes a diamond brighter to the eye and creates a
new, meaningful way to communicate value and quality.”
Peterson cites A. Jaffe: “I’m impressed by Firestar’s willingness to hold
true to the decades old A. Jaffe brand promise. It continues to offer the
better independent a high quality, classic design bridal line with enough
distinguishing brand characteristics like nickel-free white gold, high-density
castings, consistently high standards for setting and finishing and euro
shanks. Most impressive is that they train retail salespeople to meet
price resistance with consumer-specific value points. They understand that
like most of us, the bridal consumer will spend more when they believe that
they really are getting more for what they spend.”
The Key: Understand what’s important to
your customer. It’s not one size fits all.
