The diamond industry is still trying to figure out the millennial consumer, and the equation is only becoming more complicated.
There’s the question of whether Generation Y is as interested in diamond jewelry as previous generations were. And there’s the issue of whether they prefer bricks-and-mortar retail or e-commerce when they do buy.
And now there’s another factor to think about, Bloomberg reports. When millennials buy diamonds, they might not be in it for the long haul.
The news service explains that for the younger generation, a diamond may be something to own “until you get sick of it, list it for sale online, and buy another one.” As such, a traditional jeweler is not always part of the transaction.
Bloomberg notes that “online startups with alternative inventory” now abound, many of them emboldened by the success of online diamond retailer Blue Nile. Antique stores and independent resellers are also getting in on the online action through sites such as E-Bay and Etsy.
According to Bloomberg, on E-Bay, “antique rings made up 28 percent of the engagement ring market over the last three years.”
Blue Nile, which is being purchased in a $500 million deal by an investor group made up of funds managed by Bain Capital Private Equity and Bow Street LLC, has been feeling the increased competition in net sales and its stock price, Bloomberg notes.
Read more at Bloomberg