10 Ways to Appeal to Generation Y Jewelry Consumers

The Millennials are coming, and they have their own ideas about
shopping for jewelry. Here's how to invite them into your store.

By
Richard Dalglish, Managing Editor -- JCK Online, March 1, 2010

Award-winning jewelry designer Genevieve Yang, who's 23, recalls the
time she took some friends to see jewelry at a high-end department
store. "They're like crawling out of their skin because of the attitude
that's portrayed," she says of the treatment she and her friends
received from snooty sales personnel.

Yang, of Santa Rosa, Calif., worries that independent jewelry stores,
with their aura of exclusivity, also could be turning off people in her
generation. "The intimidation factor is huge," she says. "That's why
people buy online. There's no intimidation to buy from Blue Nile."

Yang's generation—known as Generation Y, Millennials, and Echo
Boomers—will have a profound impact on retailing. Born roughly between
1978 and 2000, they outnumber the baby boom generation 84 million to 78
million, and they're already making their presence felt as consumers.

In their 2009 book Gen BuY: How Tweens, Teens, and Twenty-Somethings Are
Revolutionizing Retail, authors Kit Yarrow and Jayne O'Donnell note
that, as teenagers, "Gen Y shoppers spend five times more than their
parents did at the same age."

Yarrow and O'Donnell describe a generation that's fast paced, confident,
connected (through social networks like Facebook and their ever-present
cell phones), and blessed with more options than any generation in
history.

JCK spoke with a number of retailers who are making efforts to attract
Generation Y. All agree the Internet is crucial. "A lot of young people
use the Internet to search but then go to a retailer who carries what
they like," says Darren Blum, gemologist for Coffrin Jewelers, in
Sarasota, Fla. "We do get quite a few young bridal customers who find us
through the Web—and we carry what they like—who contact us."

Brian Franklin, co-owner with his father, Kelly, of Generation Jewelers,
Peoria, Ariz., had Millennials in mind when he created the Glitz
Boutique, a 400-square-foot store-in-store that sells accessories such
as handbags, clothing, and affordable jewelry and watches. (See
FirstRead Retail, JCK, January 2010, page 28.) "The boutique was
definitely intended to attract a young clientele that we could cultivate
into bridal customers, and then create customers for life," Franklin
says.

David Kodner, owner of David Kodner Personal Jewelers, in St. Louis,
believes the intimidation factor tends to drive younger shoppers to mall
jewelers "where they can blend in with every other shopper." But he
also believes independents have an advantage—if they can persuade
Millennials to set foot inside their stores. "They find they get
educated, and it's not as frightening as they thought," Kodner says of
younger shoppers. "Once you get them in the door, they will almost
always become a customer rather than a mall customer. They just don't
know any different unless we teach them."

Dan Gordon, of Samuel Gordon Jewelers, in Oklahoma City, thinks jewelers
need to be more transparent. "Our industry is so guarded, so trying to
hide everything," he says. "We've got to let it all out there, not
continue to hide stuff, which the industry has always been about. You've
got to give everything away for free as far as intellectual
property—you have to give it all away. As a result, people will trust
you."
Following are 10 ways to appeal to Generation Y consumers.

1. Have a great Web site. "You have to have a strong Web
presence with that age group, or they will simply think you're outdated
and could not meet their needs," says Kodner. "Our Facebook and new Web
site is geared to that group, although we still have more 30- to
45-year-olds utilizing it."

Make your Web site a resource by including plenty of information, but
make educational pages strictly informative, not promotional. Consider
an "Ask the Jeweler" or "Ask the Gemologist" page, but be prepared to
respond to questions immediately.

2. Use social media. Social networking sites like Facebook and
Twitter are second nature to Gen Y. Franklin uses Facebook to get the
word out about the Glitz Boutique, which has its own page. "The Facebook
page gets added to every day," he says. "They may not all be in the
store yet, but they're getting our updates."

Coffrin Jewelers also relies on social networking. "We have a lot of
young customers who are active with us on Facebook," says Blum. "I can't
say they found us on Facebook, but once they come into the store, then
they become active on Facebook."

Kodner held a design contest last November, with the winner determined
by votes received on the store's Facebook fan page. "We achieved over
900 new fans on our Facebook page, and the contest was promoted on over
15 jewelry blogs and Web sites," he says.

3. Hire a Millennial. This will help with Nos. 1 and 2. "Many
Millennials have had experience in retail already," notes Jan
Ferri-Reed, coauthor of Keeping the Millennials: Why Companies Are
Losing Billions of Dollars in Turnover to This Generation and What to Do
About It. "It tends to be the industry where they go for part-time
jobs."

4. Let customers design. Mike Wisnosky, owner of Wisnosky
Jewelers, Tunkhannock, Pa., took part in the launch of CounterSketch
Studio, a joint venture of Stuller and Gemvision that allows customers
to participate in jewelry design. Wisnosky thought the program, which
uses a version of Gemvision's computer-aided design software, would
appeal to younger, technologically savvy customers. "That was our target
initially, to look at the younger crowd to get them more interested,"
Wisnosky says. "They are very attracted to the fact that it's
computerized and easy—click, click, click."

Wisnosky also got an unexpected bonus: "What's interesting is that it's
appealing to all levels of ages, which has floored me," Wisnosky says.
"We get comments [about CounterSketch] from people in their 50s and 60s,
so we've got both. It was a pleasant surprise."

5. Reevaluate marketing. "I think it's imperative to start
marketing to that group right out of high school," says Kodner, who
believes traditional marketing techniques are wasted on Millennials.
"The younger generation is looking for substance, education, and value,"
he says. "They have much more access to education about whatever they
buy than any generation before them. So we as jewelers have to look
beyond what we know traditionally worked and explore the new ways people
communicate and shop."

"Advertising is dying," says Gordon. "Sure, it's still effective and has
its place, but it needs to be you connecting with your market or
community. Never say, Do you need this or need that. Just engage in
conversation, find people with the same likes and interests, and the
loyalty factor is 10-fold because you developed a human relationship."

6. Go green and engage in cause marketing. Yang, who often
meets consumers at high-end craft shows, says social issues are
important to her generation. "Conflict diamonds are on people's minds,
especially younger people, from what I've seen," she says. "Not so much
from older people."

Kodner uses cause marketing initiatives to appeal to Gen Y. "It goes
with the store's overall mission well, and it shows that you're
community-minded as well as a business," he says. "I think that has
become an increasingly important aspect to getting shoppers to come to
you instead of buying online."

Gordon believes cause marketing can get results, but he cautions against
insincerity: "If your mind thinks, If we help Haiti and so people will
like us, that's completely backwards. It will come if you put yourself
second."

7. Refresh your store's look and feel. "Most local stores
don't do a great job of looking hip," says Yarrow. "They need more
visual impact." She cites the posters displayed in stores like Urban
Outfitters and J.Crew, which show young people having fun with other
young people. "They should show not just displays of jewelry but people
wearing jewelry and having fun wearing jewelry," she stresses. "Gen Y
consumes messages through images. Show them it's OK to wear jewelry
doing something."

Wisnosky built a new design center for his store, with a large
flat-screen TV, "cushy chairs," and other Gen Y—friendly amenities. "The
cases are open, and the salesperson and customer are both on the same
side," Wisnosky says. "It's a totally different atmosphere."

8. Stock more-affordable jewelry. "Expensive jewelry for this
crowd is not moving today," says Franklin. "But they still want jewelry,
which is why we brought in sterling with natural faceted stones. It's
still quality, but affordable quality."

"Everyone wants to have and experience luxury," says Kodner. "By having
merchandise that is very high quality, but inexpensive, you can sell to
that group, and when they leave your store, they should have the same
pride of achievement as if they had spent $10,000. If you can get them
young, when they first buy jewelry of any kind, they will have high
expectations of the jewelry they purchase and be fiercely loyal to your
store."

Yang says some of her younger clients buy on layaway. "That doesn't mean
you won't get the money in the end, so you shouldn't blow them off,"
she says. "I've never had a problem with it so far in three years."

9. Take note of trends. "The retailers need to be flexible,"
says Yang. "They need to look at what people are wearing. Be aware of
trends. Don't just do gold because you've done it for the last 20 years,
break out. Not completely, but add."

Jewelers should take advantage of "female self-purchasing in combination
with fashion knowledge," Yarrow advises. "The sorts of things that make
an outfit, that make a statement that helps you express yourself,
[young women] definitely will buy for themselves."

10. Tell a story. Yang says having a story is important to
younger customers. "The story could be just saying I hand-make
everything myself—these two hands make everything," she says. "When I
say I made this chain, sometimes younger people say, How is the chain
normally made? Older customers don't care."

Yarrow recommends that jewelers include information on gemstone history
and lore on their Web sites. "Romanticize it. There's a lot of majesty
and mystery and intrigue with gems, so play that up."

Innovation Nation

David Kodner, of David Kodner Personal Jewelers, St. Louis, combined
social networking, customer design, and cause marketing for a successful
promotion last November. The David Kodner Design Contest used voting
via Facebook to pick a winner after Kodner's staff chose five finalists.

Kodner thought the contest would primarily attract people in their 30s.
"As it turned out though, the 20-somethings were more passionate and
involved in the contest than the 30-year-olds," he says. "That actually
led us to start thinking about a promotion even more specifically geared
toward that age group. The design part of the contest was won by a
19-year-old girl."

The promotion continues. "The second phase is that we will show the
manufacturing process of the winning design," Kodner explains. "We will
show off the CAD/CAM images, stone selection, and actual manufacturing
process. I think that aspect is very appealing to the younger crowd.
It's both educational and also shows the willingness to be transparent
in the jewelry-making process."

Kodner says the third phase entails publicizing the piece through
Facebook as well as traditional press releases, and then selling it.
"The proceeds from the piece itself will all go to the Multiple
Sclerosis Society here in St. Louis," he notes. "It won't make us any
money, but I think we will grow our presence tremendously online, while
also building our image as a socially conscious business."

Here are three other ideas that might have Gen Y appeal:

* Kit Yarrow, coauthor of Gen BuY, suggests borrowing an idea from
Estee Lauder. On its Facebook page, Estee invites fans to come to a
store where its products are sold and have a new Facebook photo
taken—after a complimentary makeup session. Jewelers could make a
similar offer, but let the subject wear some jewelry for the photo.
Partner with a local photographer—who will appreciate an opportunity to
give a business card to young women—and a local beauty salon. Let the
women post the new picture to their Facebook page from your store, and
ask permission to post the pictures on your store's Facebook page. As
Yarrow says, "Make it about them." Promote this idea on your Web site
and Facebook page.

* First, buy a mannequin. Then partner with a hip local clothing
boutique that caters to Gen Y, borrow some outfits to put on the
mannequin, and add some jewelry. Place the mannequin in the window or
near the entrance, and change outfits and jewelry every week or two.

* Although it might seem counterintuitive, antique and estate
jewelry might appeal to Gen Y. "It's completely unique and it has a
heritage," Yarrow says. "It represents another era and plays into the
fantasy. And it's recycled, in effect."

"I think the younger crowd might like recycled diamonds," says Dan
Gordon, of Samuel Gordon Fine Jewelers, in Oklahoma City. "The antique
and estate business has a stigma, but if it's called recycled, that's
kind of catching on."

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