July 2005 Cover Focus/Generation X: Your Store Welcoming the Next Generation Gen X consumers are ready for luxury, true brands and great customer service. Humor helps too By Ruth Mellergaard and Sarah Yates This age group was named for Douglas Coupland’s cult classic Generation X – and he took the name from a punk band fronted by Billy Idol in the late 1970s-early ’80s. Gen Xers were born roughly between 1965 and the late Seventies, and they’ve resented the label from the first. Who can blame them? Labels are often less than complimentary. Coupland’s characters were “underemployed, overeducated, intensely private and unpredictable.” In reality, Gen X, whose leading edge turns 40 this year, is none of these. Growing up bombarded by TV and personal computers, pushed toward higher education, Gen Xers inherited a world that’s changing more rapidly than ever before. Make Them Yours In California, Megan Van Gundy manages Van Gundy Jewelers in Cama Rio, a store designed with the fashion-forward in mind. A keen observer of her customers, she considers first and foremost what they need and how they live. “It’s important for people in this generation to feel important – they like to be doted upon and treated nicely,” she says. “They’ve grown up with good manners and don’t like salespeople who are pushy.” Using a high-end lighting fixture as a focus, a lush fleur-de-lis carpet throughout and brightly colored comfortable chairs, the store is sophisticated, warm and comfortable. Customers of all ages feel welcome. Gen Xers in particular seem to love it. Van Gundy’s features a lot of dark wood coupled with rich color to create a homey feeling of luxury and comfort. Using a high-end lighting fixture as a focus, a lush fleur-de-lis carpet throughout and brightly colored comfortable chairs, the store is sophisticated, warm and comfortable. Customers of all ages feel welcome. Gen Xers seem to love it. Many Gen Xers can afford luxury and stick with what works. So if their businesses are going well, they’re likely to splurge on a $30,000 Rolex rather than settle for a look-alike. The message is clear: quality brand watches and jewelry spell established success, which is especially important to a generation familiar with flux and change. Family jewelry businesses that have earned the trust of their communities signify this status. After all, this was the first generation of latchkey kids – both parents worked. Downturns in the economy were followed by rapid technological change and an economic surge. A relentless explosion of information media has characterized their lives. Singles As a social group, many Gen Xers are alone – divorced, never married and some even widowed. To reach single Gen X women, Van Gundy caters to their sense of luxury. She planned a women’s night in May – no men allowed except for male servers, bartenders and models. Then she took an established idea and tweaked it just a bit. “We are an emotion-based business, and champagne is often a part of these celebrations,” she says. “Everyone has done a wine tasting, but what about champagne? At our party, a vintner uncorked a 100-year-old bottle of champagne and told us the romantic stories attached to good champagne from the past.” The tones of champagne were reflected in the jewelry shown. “That night we showcased Michael Barin’s new work using glorious pinks and 4-ct. yellow diamonds,” she says. “I wanted something a little different to get the hubbub going, and our catered, invitation-only party was a perfect fit.” At Van Gundy’s and other successful family jewelry stores catering to Gen X, customer service is front-row stuff. So much so that Van Gundy employees are often invited to customers’ weddings and family reunions. Play Smart Gen Xers are educated, and this plays into the equation also. Many of them opted for graduate school after college, in part to wait out a sluggish job market and in part to be more qualified when they did have to enter it. Consequently, they’re interested in quality. Many suggest they’ll save to buy a quality piece of jewelry. Celebrate the specialness of jewelry by providing information about the materials, the stones and the jewelry designer. Present designers at special events. Having grown up with access to personal computers, this generation appreciates expertise. If you still feel bound to cater to the Gen X’s much-touted sense of irony, convey a sense of humor and whimsical trivia in your windows and other visual merchandising. Glamour, good information and great customer service go a long way toward satisfying Gen X – and all ages of customers. Ruth Mellergaard is a principal and Sarah Yates is director of marketing at GRID/3 International, New York City; (212) 273-9612, design@grid3.com, www.grid3.com. GRID/3 designs stores for many jewelry industry clients.