What today’s luxury shoppers are looking for—and how jewelers can give it to them

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Luxury consumers no longer care about a brand’s heritage and history; in fact, that’s become something of a turnoff. They are far more interested in the meaning behind the brand.

Those are some of the findings from a recent study of 2,000 luxury customers in both the U.S. and China, compiled by McKinsey and Business of Fashion.

Like another recent study by Bain, the report predicts jewelry will remain one of the fastest-growing segments of the luxury sector, with sales rising 5-7% a year, outpacing every other luxury category except travel.

The report also discovered the following:

• Post-COVID, high-end brands “lavished attention on their top customers” and “lost track of lower-tier clients and failed to give them a reason to visit stores.” The mid-range demo quickly tired of “years of price hikes, rapid scaling of products and store networks, as well as a weaker offer of entry-level products have eroded perceived value.” Those tactics turned off “millions” of shoppers.

• Brand heritage and history aren’t really that important to present-day luxury consumers, with many seeking out “challenger brands”—“smaller independents without established heritage but rich in cultural relevance.”

• At the same time, “luxury clients are questioning purchases that feel too trend-driven, overexposed, or unlikely to hold long-term value.”

• Brands should aim for the heart with emotional storytelling. “The era of buying luxury mainly for status and visibility is giving way to something more personal, centered on identity, connection, and self-expression.”

• Consumers crave a “sense of belonging to a community.” They judge brands “not only on what they sell, but for what they stand for culturally” and “by how brands make them feel. The experience associated with a brand or product can be seen as just as valuable as the product itself.”

• The authors advise sellers to “create communities, memberships, wellness programs, and cultural series that keep clients emotionally engaged between purchases. Build services and curated experiences around emotionally significant life moments (travel, weddings, career milestones, birthdays, motherhood) where customers are most willing to form long-term brand attachment.”

• Stores can play a role in this, as they evolve from mere retailers “into destinations designed to deepen emotional connection, increase dwell time, and create social participation around the brand.”

• And needless to say, the retail experience should be pleasant, as U.S. shoppers are increasingly put off by “pushy sales tactics and long queues.”

• For a company doing all this well, the report singles out Chinese brand Laopu Gold, whose stores “resemble cultural museums more than traditional jewelry stores, displaying Chinese art and Buddha figures and featuring private viewing rooms.” The brand’s made such a stir that LVMH chair Bernard Arnault toured one on a recent visit to China.

Related read: “The businesses that understand why people gather will shape the future of jewelry,” from Jewelry One of a KIND

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Is this compliant? JCPenney lab-grown edition

The Jewelry Wire is kicking off a new feature, “Is this compliant?,” where we look at whether certain communications fit the recommendations laid out in the Federal Trade Commission’s Guides for the Jewelry Industry.

Yesterday, we featured a post from analyst Paul Zimnisky, who noticed a local JCPenney was selling lab-grown diamonds, above the counter, discounted to $40. That was noteworthy, but I was also struck by its signage: “Diamonds Yes, Please.”

The FTC stipulates that the word “diamond” be modified when talking about a lab stone, and I wondered if this meets its standards.

Making this more complicated is that the diamonds in the boxes are clearly labeled as lab-grown.

So I asked one of our industry’s foremost Jewelry Guide experts, Sara Yood, president and CEO of the Jewelers Vigilance Committee, to weigh in, stressing that she is only giving an opinion:

We all know that the word “diamond” alone, without any disclosure, means a natural diamond that came from the earth. When looking at disclosures specifically, I always check whether the disclosure is made before the consumer makes a decision to purchase a product. I’m also looking to see whether the disclosure is made in a way that ensures it is seen as important. For example, I want to see that a disclosure is made in a similar font size, type, and close to the word it is modifying.

In this case, the disclosure is made before a consumer would make the decision to purchase, because it is clearly labeled on the box itself …

However, I don’t think this disclosure is sufficient in size relative to the overall placement of the word “diamond” on the sign above to satisfy the clear and conspicuous factor. That sign specifically signals to a consumer, “Hey, there’s natural diamonds here” and only when you get close up do you find out that the products are laboratory-grown.

So overall, this to me would be an insufficient disclosure. If this display included both natural diamond and laboratory-grown diamond pieces, then I think it would be okay. But since it doesn’t, the seller would be in safer territory if they included a “laboratory-grown” disclosure on the overall signage.

My take: There seems little chance of consumers being misled here, so this isn’t terrible. However, compliance would have been relatively easy, just adding the word “lab-grown” somewhere on that sign. JCPenney is a big company. It should know better. And if you see anything you’d like to see reviewed, email me.

Yood adds: “JVC is always happy to review advertising for compliance with the FTC Guides, including the Jewelry Guides and the Green Guides. JVC members also receive a full website compliance evaluation from one of our attorneys as a member benefit. You can reach us at info@jvclegal.org and review our publication, Understanding the FTC Guidelines.”

Photos courtesy: Paul Zimnisky

Former TAG Heuer CEO to take over De Bethune

Antoine Pin, who served as CEO of TAG Heuer for a little over a year, has been named CEO of watchmaker De Bethune, the company confirmed to The Jewelry Wire.

Pin succeeds De Bethune’s longtime CEO Pierre Jacques, who stepped down from the role last year. The 1916 Company (then known as Watchbox) purchased De Bethune in 2021.

Meanwhile, former Audemars Piguet CEO François-Henri Bennahmias has told Business of Fashion that he had hoped to buy De Bethune from The 1916 Company, but the talks fell through. Instead, he will launch his own brand next year.

In addition to heading TAG Heuer, Pin has also run Bulgari’s watchmaking division.

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Quote of the day

“I don’t want us to lose the plot, to lose the story, and forget how fun it is when there’s meaning behind the things we wear. I don’t want too many things in my jewelry box whose origins I can’t even remember. I want the story. I want the memories. I want the genuinely rare.”

—from “What happens when jewelry becomes fast food?” The Literary Jewelry Box

Your view on … lab and natural negativity

Olga González, CEO of Pietra Communications, wrote on LinkedIn about Tuesday’s call for lab-natural diamond ceasefire:

The diamond industry’s biggest problem is internal negativity. Consumers are tuning out when both sides spend time attacking each other. Lab-grown diamonds aren’t going anywhere, and neither are natural diamonds; both have a place in the market. The diamond trade will be strong again when it stops creating storms from within.

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In today’s Jewelry Links: De Beers slashing diamond prices; are the lab-grown diamond stores in India making money?; why a designer got death threats; and Serena Williams’ diamond nails steal the show at Wimbledon.

Turn off those Google alerts. You won’t miss it, because we got it.

Company news

• Tariff refund portal opens for second phase (Spectrum Local News)

• Graff taps BTS’ Jung Kook as global ambassador (WWD)

Diamond news

• De Beers to cut prices at July sight (Rapaport)

• Anglo American’s exit from diamonds shows shifting commodity risk to governments (LinkedIn)

• What’s with all the lab-grown diamond stores in India? (LinkedIn)

• Nearly 80% of Belgian traders pass anti-money laundering exam (PR)

• World Diamond Council reminds traders that new System of Warranties is coming (Mining Weekly)

• African Diamond Producers Association forges alliance with Harry Oppenheimer Diamond Training School (LinkedIn)

Gemstone news

• What four years digging with Maasai miners taught me about culture and resilience (Gemstone Detective)

Gold news

• Narendra Modi’s appeal lowers gold imports to India (The Economic Times)

People news

• Designer Elizabeth Buenaventura receives death threats after being misidentified in TikTok video (JCK)

• Jen Cullen Williams joins the board of Jewelers for Children (LinkedIn)

• Jacob & Co. hires Richemont commercial and intellectual property lawyer Joseph Forgione as new general counsel (Bloomberg)

• Laura Burdese officially takes over as Bulgari CEO (LinkedIn)

• Kristen Cannon of Valobra Master Jewelers dies at 49 (National Jeweler)

• Long obit for former Tiffany design director John Loring (New York Times)

Retail news

• Inside Tiffany & Co.’s reimagined flagship boutique in California (Robb Report)

Watch news

• Rolex unveils clock at Rockefeller Center (National Jeweler)

• Phillips smashes watch auction records with a $235 million spring season (WatchPro)

Miscellaneous

• Famous cursed diamonds and the stories that won’t die (Something About Rocks)

• People really love Serena Williams’ diamond nails (Marie Claire)

Have a comment or news tip? (We love news tips!) Leave it below or email rob@thejewelrywire.com

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