Should you believe the hype?
If you read the news, you could get the idea that millennials just aren’t as impressed by diamonds as their parents and grandparents were. Reasons cited range from lack of money to concerns about the ethics of diamond mining, with publishers running headlines such as “Millennials Aren’t Buying Diamonds, And Here’s Why.”
But a new report from De Beers suggests millennials could turn out to be a diamond-buying generation, after all.
Writing about the report, Forbes contributor Rachelle Bergstein explains that the common belief “is that millennials value experiences like fitness and travel over material items, and that a mix of social consciousness and savvy has led this generation to question the appeal of the diamond as a symbol of love.”
But De Beers says millennials “do express strong desire for diamonds when they reach financial and demographic maturity.” This is despite “experiencing less favorable economic conditions than preceding generations and progressing more slowly along the traditional life path.”
In 2015, millennials spent nearly $26 billion on diamond jewelry in the largest four markets combined — the U.S., China, India and Japan, according to De Beers. That amounted to 45 percent of the total retail value of new diamond jewelry acquired in those markets.
Millennials “represent a source of considerable future potential for the sector,” according to De Beers.
“In order to unlock this potential the industry needs to find appropriate ways to engage Millennials’ inherent need for self-expression and interconnectivity,” the company explains.