A female future in a branded world
(Published in JCK Trendz in Spring 2001)

Women are an ever growing market force. Many of them are not prepared any more to wait until jewelry is presented to them. They enter the jewelry boutiques themselves. Preferably the ones that are crowned by the name of an international brand.

To pretend that women will shape the future of the jewelry business may be a provocative statement, but it is definitely not made out of ideological preconceptions. It is based on hard facts. Just lean back and reflect on the following figures: Women buy or influence the purchase of 80% of all consumer goods. Automobiles are no longer the male bastion they once were. Women actually buy 50% of all cars and influence 80% of their sales. While once it was men who drove the computer market, now women buy 50% of all PC’s. And in perhaps the most powerful symbol of economic clout – stock ownership – consider that 48% of stock market investors are women. Half of all women own mutual funds. By the way, by the day, these number are zooming. And in families where both spouses work, wives outearn their husbands in 22.7% of these households. Did you realize also that 40% of households with assets over $600'000 are headed by women?

If this is not enough to convince you, just think about your own household. Who decides what products enter your front door on a daily basis? Who prepares whatever purchase must be done? Who reads magazines and is informed about almost everything when it comes to buying? It’s the women who do it. So you’ll say perhaps that this might be true for the common type of consumer goods. But that jewelry is an altogether different thing, which is still something women expect as presents form their spouses.

So watch this. The Japanese economy has at last found a savior. A generation of 20-something, fashion-conscious women have sparked a consumer boom not seen in Japan since the eighties. Economists see this consumption as the best hope for Japan’s fragile economy, with government surveys indicating that young women account for 60% of consumer spending, in stark contrast to a decrease in overall personal spending. This generation, aged 20-34, frequent an array of shops, car dealers, travel agents and restaurants, providing businesses with vital rewards. Outlets of Tiffany in Japan reported a 13 % year-on-year increase in sales in the three months ending in January, while Bulgari said sales in 1999 jumped by 22%, thanks mostly to young women. Free-spending by ten million of these Japanese women is made possible by the fact that most still live at home with their parents, and so pay no rent and incur none of the everyday costs of living. (view point fun s.15)

Japanese women are not the only ones. According to figures from a 1997 World Gold Council survey, 78% of all women respondents said they had purchased a piece of jewelry within the previous 12 months. According to the Diamond Information Center, the rate of female self-purchase of diamond jewelry has increased by 41% from 1998 to 1999 and it now amounts to a US$ 3.75 billion business in the United States. The Platinum Guild International has no statistics separating platinum jewelry sales by gender, but says its research indicates 12 million American women are planning to purchase platinum jewelry in the next year. Silver continues to be a female favorite, with roughly 90% of all silver jewelry sold being purchased by women, and women also purchase 79% of all pearl jewelry sold.

All over the world a new elite of Ally McBeal-like “bright young things” are females who work hard and play hard. They live on high salaries and have the battle cry: “I want the best labels and go to the best restaurants”. Conversations with jewelers in major European cities prove, they have a rising number of young women buying jewelry for themselves. Who are these women. They have studied and entered the business world as consultants, investment bankers or work in the media world. They work very hard, live single lives and need from time to time a little retail-therapy to cheer up their busy lives. When it comes to jewelry the last thing they want is to wait for Mr. Right whenever that might be. So just as our friend Inez, a successful management consultant, who bought that lovely antique necklace for all the Christmas party to come, they will take care for the jewelry purchase themselves. Also the growing number of working mums is not intended to leave their jewelry collection up to the times when they need the jewelry to outshine their wrinkles.

Emotions and Pragmatism

Arian Tensen from Lyppens Diamantairs in Amsterdam says about his typical young female customers: “ They are independent women, who have their own business and very often are headhunters. They impress with their high emotional intelligence but they are also very demanding service-wise.” His shop lies in the highly fashionable P.C.Hooftstraat in the midst of international fashion designer boutiques. Lyppens Diamantairs offers with Pomellato, Pasquale Bruni and Bulgari the perfect jewelry accessories for the brand conscious customers buying in the neighborhood.

This example shows a lot about the psychology of young female buying jewelry. The proximity of fashion and jewelry is a given for them. Because they will always wear their jewelry with clothes there must be an underlying style-statement in the mix of both. Just as hard as they investigate the perfect mix of color, shape and style to suit their individuality, they will think about the perfect jewelry to go with their wardrobe, looks and way of life. They have learned to trust their favorite brands and that is exactly what they are looking for when buying their jewelry. Women love jewelry. It is a statement of femininity, luxury and lifestyle rather than a status symbol. And this is exactly what brands communicate. They understand this aspect and have the competence to speak about it. Besides these rather emotional aspects brands also offer the internationality and trust women expect when buying into luxury. It is the security for the buyer to have the support of a big international player. Wherever they have a problem they can enter a shop and find the assistance they are looking for.

From all the conversations held with retailers and brand representatives one conclusion can be drawn. Women prefer jewelry that represents “luxury for every day”. They look for jewelry that is a) easy to wear and combine, b) adjusts to their lifestyle and as many of their activities as possible, and c) compliment their individual looks and style. They typically buy in price ranges from $500 to $5'000. Decisions on higher spendings are often taken together with their spouses.

The brands in the jewelry industry target the female market very clearly and can look back on a history of success in doing so. Young French women for instance have branded jewelry high on their wish list. Specially Chaumet experiences a steady flow of Twenty-something’s buying pieces from their signature collections “Tango” or “Style de Chaumet”. Other names at the jewelry sky are equally in a position to make women’s hearts melt. A lot of brands are testing new ways of addressing their new young clientele. In Paris a new range of outlets were opened recently on the Rive Gauche side of the river. In this traditional area of night life and artists the brands install little boutiques with a young and uncomplicated flair. Thus they want to reach those customers who feel intimidated by the rather glamorous motherhouses at Place Vendôme and Rue de la Paix.

The recent past has seen the arrival of new names in the high jewelry field. Big names of famous couturiers and fashion designers have entered the competition. After covering wide areas of fashion, accessories, perfumes, etc. they have finally expanded their diversification into high jewelry. Chanel Joaillerie has been an early forerunner of this development. They started in 1993 with a collection that was based on the famous historic diamond jewelry collection of 1932 by Mademoiselle Chanel herself. From the beginning on Chanel Joaillerie was independent of the Chanel mother house, developing and expanding the original collection constantly. With their prominent location at Place Vendôme in Paris they mark their position among the high jewelers clearly. So it is no wonder that the typical customer of Chanel Joaillerie comes from the jewelry side rather than from the traditional Chanel couture side. The typical customer in Paris is a European woman of 30-50 years buying for herself in a lower to middle price segment. Prices at Chanel Joaillerie start at around US$ 1'000 and go up to the spheres of several million US$.

The next big name to open at Place Vendôme will soon be Christian Dior. Unlike Chanel, the house of Christian Dior does not have a historical link to high jewelry. There had always been a strong fashion jewelry collection, which got with the start of John Galliano very glamorous. The new high jewelry collection shown at the special boutique at Avenue Montaigne in Paris and in New York has a very baroque and opulent character and cites inspirations of the fifties which was Christian Dior’s big era of success. Also here it is a majority of women who buy for themselves. Prices start at short under US$ 1'000 and go up all the way to the highly precious one of a kind range. The female customers are not necessarily customers of Dior fashion, but they admire the brand strongly and buy easily for up to US$ 5’000. More expensive price ranges are mostly bought by couples.

A very recent development is the high jewelry collection of Christian Lacroix. This collection in silver and colored gemstones was launched in last October. So far it can only be bought in Paris, but will be launched internationally in 2001. Christian Lacroix says: “ For the past decade, costume jewelry collections have been designed and created with increasing care and enthusiasm. Thanks to our expanding knowledge and expertise in the field of jewelry, we have decided to turn our attention to silver, a genuine precious metal. It embodies the essence of South American baroque and ex-votos. The collection offers pieces that range from an intensely contemporary spirit to the ornamental style of finery depicted in 17^th century Spanish paintings as the sensuality of organic shapes inspired by plants.” The relative moderate price levels of this collection including 52 models make them the perfect jewelry accessory for the female buyer of Lacroix’s fashion. Prices range from roughly US$ 70 to 1'300.

Not only French couturiers are venturing into the jewelry field. Also Escada, the international fashion house in Munich has launched a new collection. Their diamond collection with a specially cut solitaire diamond in a heart-shaped setting reached the classic Escada customer immediately. “The heart motif”, says Brian Rennie, Escada’s Design Director, “is so closely associated with Escada, that it was the natural choice. It also symbolizes the love affair of women with diamonds, whether they are given as a gift of love or purchased for themselves.” Sold exclusively in their own boutiques it is primarily the sworn-in female Escada customer who buys the jewelry even in one of a kind settings for special diamonds up to 5cts!

The list of jewelry ventures from fashion houses would not be complete without mentioning the trendsetters of the Gucci label. After their phenomenal success in the watch field, they have re-launched their heraldic animal of the 50’s: the Gucci-tiger. Pavé-set with several carats of diamonds it is bound to be the bold statement of the international elite of Gucci-followers.

The entry of fashion names in the jewelry business marks the beginning of a new era which will change the rules of jewelry marketing. It should be taken by jewelry professionals as a thought-provoking development. Not all of the new competitors will succeed. But those who will, are bound to become serious and important players. Not least because they know how to meet a woman’s desires.

(Sources: Faith Popcorn, Eveolution, view point issues 7 and 8)