To boost sales, the jewellery industry must focus on Gen Z, which comprises over 23% of the population and has growing purchasing power. The industry faces the challenge of aligning with Gen Z’s values to secure their attention and spending. Technology, particularly social media, is vital for engaging with them, serving as both a self-presentation platform and a shopping destination. Understanding and responding to their sustainability needs is a puzzle the industry still needs to solve.
This report comes in PPT.
The jewellery industry continued to grow in 2023, with value sales posting a 3% increase in constant terms. However, a full recovery to pre-pandemic levels is not expected until 2025. Fine jewellery is predicted to drive growth over the forecast period, but its performance will be tied to its ability to attract Gen Z consumers.
Gen Z accounted for just over 23% of the world’s population in 2023. With its purchasing power and influence set to increase, adapting to its demands will be key for jewellery brands to maintain growth. Understanding these consumers is challenging, as they are significantly different to their predecessors, have contradictory attitudes, and change preferences quickly.
Gen Z jewellery consumers are more frequent shoppers, and are trend-orientated, identity-driven and digitally engaged. They value the ability to build a jewellery wardrobe they can choose from to express their identify. Social media is not only a stage to present themselves, but also a search engine for discovery and a shopping destination.
55% of Gen Z consumers surveyed in 2023 were concerned about climate change; however, this percentage has been declining, which, coupled with this cohort’s preference for ultra-fast fashion, rather contradicts this claim. Consumers and the industry need to align better with sustainability, and transparency, clarity, evidence-backed claims and education will be key.
The jewellery industry is still trying to determine how to respond to the changing nature of Gen Z’s preferences and habits. Although companies claim to be adapting their offerings to cater to these consumers, some of their initiatives seem to contradict this. The cost of living crisis emphasises the importance of value, but to reach these consumers values are more important.
Personal Accessories refers to a diversified group of personal products including Bags & Luggage, Jewellery, Watches and Writing instruments.
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