Platinum Guild International (PGI) in its recently released third annual Retail Barometer has found that sales of platinum jewellery in India in 2015 grew by 24%.  It was also the only category, reveals the study, “to consistently grow every quarter”.  Out of this 24% growth, 53% was accounted for by studded platinum jewellery.

It was found that the marketing campaigns for Platinum Evara, the bridal jewellery brand launched last year had evoked a positive response at the retail level, both, in terms of inquiries and sales. However, it is expected that it will take at least another two years before the brand is established. In the meantime, it has had a positive effect of driving sales of men’s jewellery, it was felt.

“Increasing acceptance of platinum by men has ensured a high growth in Men’s Jewellery fuelling the growth of plain platinum sales which now contributes to 47% of sales,” the study noted.

Currently, it is the platinum rings and bands launched in 2009 – promoted by the unique Platinum Day of Love campaigns – that PGI reckons is the “mainstay” category for platinum.

The Retail Barometer helps gauge platinum demand from the “retail sales perspective and trade sentiment for the forthcoming year”. It is a study conducted for PGI   by a third party agency, StratWon Business Consulting.    

The research survey, conducted in January and February 2016, covered over21 retail companies, with approximately 310 retail outlets across the key platinum markets across India between them,  PGI stated. 

The retailers reported a gold jewellery growth of 8% while diamonds were flat.

Vaishali Banerjee, Country Manager India, PGI said, “Platinum has seen an excellent growth of 24%, despite it being a very challenging year. Insight-based focused strategies have helped us deliver growth last year. We fuelled the desire for platinum, by creating new jewellery occasions and fulfilled unmet consumer demands through each of our brands.”

She added, “The outlook for 2016 is optimistic given that young India resonates with platinum. Through our initiatives and strategies we will continue to build further momentum.”

International Retail Barometer Findings

The research survey at an international level covered over 400 jewellery retail companies with approximately 23,000 retail outlets in the four main international markets of China, India, Japan and the USA. 

The survey found that “the low platinum price has created a buying opportunity for more consumers, as well as margin opportunities for retailers”.

While in China, retailer chains and PGI’s strategic partners significantly outperformed  the market; in Japan demand for platinum jewellery (coupled with a shift in share of heavier product)  led to an overall growth of  2.7%. The US  market registered an  overall growth of  10%, owing to the low platinum prices.

Huw Daniel, CEO of PGI, commented, “Despite manifold challenges in the luxury category and a difficult year for jewellery in general, jewellery retailers vested in platinum have weathered the storm ahead of their peers. The historically low platinum metal price has benefitted consumers and retailers alike, presenting a unique opportunity to acquire the most aspirational fine jewellery. India is a very exciting market and PGI is bullish about the prospects here, particularly in the light of the launch of the new bridal segment, Platinum Evara. Due to our constant efforts the Indian platinum jewellery market grew by 24%, outperforming the forecast. We look forward to strong growth numbers in 2016.”

Pic Cap: A bracelet from a collection of Platinum Evara jewellery launched for  the  wedding season.
Courtesy:  PGI