The Rise of the Global Jewelry Consumer
Lift your head from the daily challenges of running a jewelry business, and you quickly realize something important: the global diamond, gemstone, and jewelry industry is growing exceptionally well. Despite economic headwinds, the global fine jewelry market was valued at $224.38 billion in 2023, and is projected to reach $343.90 billion by 2032.
Despite the significant, obvious global challenges of poverty and inequality, over half of the world's population is now part of the 'consumer class'. The current growth rate means we could have five billion global 'consumers' by 2031. That's welcome news for all luxury industries, including jewelry. However, it also poses some important questions for how we respond as an industry.
On one hand, the growth of the global consumer class is positive for long-term growth; on the other, as these consumers are more informed, connected and discerning than ever before, we as an industry must be well-positioned to provide the relevant and engaging information they desire. At the higher end of the luxury jewelry market, what used to divide consumers from the U.S., Europe, and the rest of the world is disappearing. The accessibility of social media and global travel means that ours is now a truly global industry with a global consumer base.
Jewelry markets are historically fragmented. The majority of global jewelry purchases are still local and unbranded. However, in 2023, the fine jewelry branded market grew 15%, the highest growth across all luxury sectors. It signals where the market is heading over the next decade and beyond.
Consumers want to buy brands, but the strength of a brand name alone no longer resonates. This new global consumer class, which is also broadly younger and more entrepreneurial, doesn’t just care about the jewelry brand they're engaging with; they also care about what the brand represents globally and locally.
In the short term, this shift is most pressing for luxury brands with a global reach. However, it's also crucial to your strategy if you plan to expand into new markets this year, regardless of the size of your business. You should also be aware that many of these new consumers are part of Gen Z, which is now the largest generation globally, so you should already be planning a marketing and brand strategy specifically aimed at them to avoid playing catch-up.
The growth opportunity is clear; there is more that unites than divides consumers across geographical boundaries, but the challenges remain. It will be crucial to prioritize your brand positioning and digital presence, share authentically who you are, and tell a credible story about your environmental, social, and governance (ESG) credentials, to attract this new generation of global consumers in any market.
The rise of the global jewelry consumer
"The idea that consumers in different countries are so different has collapsed. There is now a global consumer. The information about jewelry and luxury is now global. At the premium end of the market, the consumer has access to all information, and they travel around the world. That idea of a different approach or radically different tastes doesn't exist any more."
- Stellene Volandes | Town & Country Editor in Chief, Vicenzaoro, January 2024
The globally diverse yet localized nature of the diamond, gemstone and jewelry industry has historically driven the assumption that products would only work when tailored to specific local or regional tastes and, for years, that was the case.
However, social media, global travel and a growing global consumer class have changed that. We've also seen the growth of global jewelry 'superbrands' in the last decade going hand in hand with the rise of the global consumer. This is not to say that taste is now universal and 'globalized,' but rather that the barriers to entry into new markets are now lower if you can create the right brand experience and tell a compelling global story that resonates with these consumers locally.
We're now at a pivotal moment. In the next decade, much of the growth in consumer demand will happen away from the traditional luxury markets in the U.S. and Europe. China has already established itself as a major luxury market, but India, the Middle East and other Asian countries, including Thailand, are growing rapidly.
Success in this new market landscape is increasingly tied to a brand's ability to engage with a diverse, global customer base. Consumers want to feel part of a community that comes from buying their jewelry from a brand with global recognition, but they're also judging those brands on their response to their national culture and preferences. This has also been called 'Glocalization' for obvious reasons.
What does it mean for jewelry brands?
Luxury global consumers increasingly purchase products via the ROPO approach (Research Online Purchase Offline). This means that creating an in-store experience tailored to their individual needs and mirroring that experience online is crucial to engaging these customers. We've seen that with Louis Vuitton in China, where its success has been attributed to its strong digital presence and locally-focused social media strategy.
Fundamentally, these global consumers desire similar things, even if their preferences are still towards local or regional trends. They want their jewelry brands to tell a story that resonates, reflects their values, and provides a digital-first, personalized experience.
Hill & Co. Principal Consultant Andrea Lucille Pooler believes it’s vital for brands to start thinking about how they appeal to this new global consumer class:
“The evolution of the global consumer is a testament to the transformative power of technology crashing into culture, creating a marketplace where brands must be globally aware and locally nuanced. We often reap huge benefits for our clients by helping them to leverage this shift, ensuring consistent and engaging brand experiences across all digital platforms.”
Andrea Lucille Pooler, Principal Consultant
Omnichannel
Jewelry brands must offer seamless omnichannel experiences as part of their ‘business as usual.’ Consumers expect to be able to switch between physical, digital and virtual stores easily. If they can't, they will look elsewhere.
Digital
In 2024, your brand's digital channels will almost certainly be your customer's first touchpoint, whether directly through your owned channels or indirectly through a third party, such as an influencer. A clear and compelling brand story must resonate across every digital channel, from your website to social media. There should be a consistency of messaging across your channels to ensure instant brand recognition.
Your digital channels must amplify your global presence, but this new consumer should also be able to see how your brand relates to them at a local and national level.
Andrea Lucille Pooler believes that personalization is key:
“By creating personalized digital strategies, we ensure our client's brand meets the highest expectations of today's consumers, fostering loyalty and setting the stage for growth in the global jewelry, gemstone, and diamond industries.”
Brand Story
The growing global consumer class is more likely to be a Millennial or Gen-Z. Unlike their parents and grandparents, they care more about brand positioning, values, and actions than brand loyalty.
Gen-Z, particularly, will have the spending power to make or break brands in no less than a decade, and they wield that power confidently. This generation is clear on its values, and Gen-Zers care a great deal about the sustainability and social and cultural impact of their luxury products.
Cultural sensitivity
'Glocalization' is an attractive proposition if you're considering expanding your brand into new markets this year. Brands that can successfully align their global reputations with local positioning have a significant opportunity for growth.
However, brands going 'glocal' must do so thoughtfully, considering the implications of cultural appropriation and ensuring their marketing campaigns are inclusive and respectful. Your global customers should feel like you are part of their community because you have made a real effort to understand their culture. The key to the ‘glocalization’ approach is to immerse yourself in your target market, get to know your customers intimately or work closely with those who do.
Personalized
Offering personalized and exclusive experiences can help brands stand out in a global market where consumers are well-informed and have high expectations. This also extends to 'just in time' delivery, where the expectation is now for virtually immediate delivery in many markets.
Companies that take too long to deliver a custom item will appear out of touch and irrelevant to this new generation of global consumers. That's why operations and logistics planning are crucial when expanding into new markets.
What’s next?
The rise of the 'Global Consumer' is a challenge but also an exciting opportunity for diamond, gemstone and jewelry businesses. New global markets have never been so accessible, but that access must also be considered carefully with the right approach.
Delivering a consistent brand experience across all physical and digital customer touchpoints should be the cornerstone of your growth strategy to attract this new consumer class. However, it’s often too easy to make assumptions about customers in new markets without segmenting them to understand the nuances that will make your brand positioning genuinely relevant and engaging. Even as the world becomes more global, it’s the brands that can tell their story at a national and local level that will truly thrive.
There’s no doubt that we’re at the beginning of an exciting new era of global luxury consumption, and the next 'superbrands' may be about to emerge. The question is, are you ready?