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Conscientious jewellery consumers rising
2.6 k views | Posted July 12, 2011 |
By Sonia Nair
Consumers are becoming more conscientious when splurging on luxury items, and placing more importance on craftsmanship, use of local products and value for money.
Entitled Navigating the New Consumer Realities, the report was published by global business advisory firm Boston Consulting Group (BCG).
According to the report, jewellery buying among consumers is being affected by the notion that it is frivolous and superfluous.
“Luxury as a value or notion is clearly on the decline. As people shy away from ostentatious luxury, more authentic products with a story or roots will generate greater appeal as they match the growing interest in authenticity and tradition,” Dusseldorf-based BCG partner Catherine Roche said.
“However, while many consumers face budget constraints and are focusing on saving, there remains a significant group of consumers with the means to spend, but these too will make choices and change in their values,” Roche added.
According to the report, consumers are looking for products that have health, safety and environmental benefits. The report also suggests consumers are buying products based on word-of-mouth advice instead of advertising by manufacturers and retailers, which they have come to distrust.
According to statistics collated in the report, ‘jewellery and accessories’ was one of the product categories with the highest ‘trading down’ intent – meaning consumers were either spending the bare minimum or trying to save a little money when buying jewellery.
“Consumers are trading down not just out of necessity but because finding a good deal gives them an emotional boost,” the report said.
Statistics in the report showed that consumers were trading up in special treats such as travel, sit-down restaurants and wine – a finding that coincides with the views of many jewellery retailers interviewed by Jeweller earlier this year who said that consumers are choosing the options above instead of jewellery when it comes to festive occasions such as Valentine’s Day and Mother’s Day.
This cautious jewellery buying habit coincides with the statistic that reveals 48 per cent of Australian respondents plan to cut their spending over the next 12 months.
Only the UK, Greece and Brazil recorded more cautious spending patterns with 50 per cent, 53 per cent and 64 per cent of consumers planning to cut their spending respectively.
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