PGI releases 2019 PJBR
From
Maharaja’s to Millennials:
Timeless
Platinum Continues to Sit atop
Platinum’s
natural white lustre and legendary grip on the world’s most precious gems has
ensured its position as the precious metal of choice for fine jewellery from
the moment King Louis XVI of France declared it “the only metal fit for kings”.
These
timeless qualities, together with the allure of a metal that is thirty times
rarer than gold, continue to drive aspiration for the precious metal perceived
by today’s jewellery customers as the highest value metal for jewellery.
Recently Platinum Guild International (PGI) releases the2019 Platinum Jewellery
Business Review (PJBR) revealing the aspiration for platinum among today’s
consumers, and the jewellery industry’s efforts to satisfy consumers’ timeless
quest for jewellery that captures the most meaningful moments, with a
particular focus on men’s jewellery, young consumers and self-purchase.
The
annual Platinum Jewellery Business Review surveys over 1,000 manufacturers and
retailers, in addition to over 1,000 consumers1to provide the world’s most
comprehensive and in-depth analysis of platinum jewellery’s performance in
2018, together with a forecast for 2019, highlighting the trends that will
shape the industry in each of the four key platinum jewellery markets: Japan,
China, USA and India.
“This
survey demonstrates how platinum continues to sit atop global consumers’
precious jewellery metal hierarchy as the metal of highest perceived value,
making it the natural choice for jewellery that holds a special place and
meaning in their lives. Three of platinum jewellery’s key markets experienced
growth, and all four markets witnessed expanded platinum jewellery offerings as
the jewellery industry seized opportunities to go beyond platinum’s stronghold
in bridal” says CEO Huw Daniel of Platinum Guild International.
“Platinum
market in India has witnessed consistent growth on the back of our strong trade
and marketing initiatives. Our strategic partners have reported a growth of 26%
in platinum sales in 2018. This year, PGI India will continue to work with
strategic partners to expand its presence in tier 2 cities to optimise the
growing affluence and preference for platinum jewellery in these markets.
The
outlook for 2019 is strong and we expect a growth of 15 - 20%” said, Vaishali
Banerjee, Managing Director India-PGI. “Platinum jewellery today is an
imperative for jewellery business. The younger generation, especially when it
comes to marking significant emotional milestones often come looking for
platinum jewellery. With increased awareness, platinum today ensures younger
walk-ins at our showrooms.
We
plan to take platinum along as we expand into tier 2 & tier 3 cities. Apart
from rings, and bands, the demand for platinum men’s jewellery has been growing
consistently, making it one of our incremental lines of business today. We
expect the platinum category to grow in the coming years too”, confirmed
Managing Directors of GRT Jewellers India Private Limited, Mr G R Ananth
Ananthapadmanabhan and Mr G R Radhakrishnan.
“As
we expanded our presence and reach across India, we ensured that platinum was
part of our key offering. There is an increased awareness and desire to own
platinum and the preference goes beyond just urban cities. Platinum Evara has
helped increase the choices we offer to our consumers in the bridal space and
has had an immense impact on men’s jewellery. When it comes to men’s jewellery
the market remains hugely untapped. The incremental opportunity with platinum
jewellery is manifold and we are expecting a positive growth this year” said
Rajesh Kalyanaraman, Executive Director, Kalyan Jewellers.
Young
Consumers:
Contrary
to popular belief, the rising cohort of millennial consumers and the even
younger generations are finding meaning in jewellery that embodies their
aspirations and captures their memories.
As the rarest of all precious metals, today’s consumers are turning to
rare and timeless platinum, just as their predecessors did. But their choices are being expanded into
multiple jewellery categories unlike any other time in history.
Japan
continues to have the highest per capita consumption of platinum jewellery with
a 6th year of consecutive growth, seeing an increase in platinum jewellery
retail sales of +1% year-on-year.The key demand driver was heavier rings in
bridal, resulting in 4.5% growth by weight in bridal consumption of
platinum. PGI predicts that continued
collaborations with strong influencers, whether brands or individuals,will
increase platinum jewellery’s desirability to the affluent and next generation
consumers, for bridal and beyond.
Commenting
on the millennial trend Mr. Rajesh Rokde, Managing Director - Rokde Jewellers,
Nagpur said, “Platinum has consistently delivered a double digit growth since
we partnered with PGI. Noticing the increasing demand and popularity of
platinum jewellery especially among the young, we have an aggressive business
plan in place this year. We already have an exclusive zone for platinum in our
new Laxmi Nagar store and are looking at introducing platinum at our airport
store too. With our commitment and PGI’s support I expect our platinum business
will flourish at Rokde jewellers, and more than double in 2019”.
Mr.
Darpan Anand, Managing Director, Punjab Jewels from Indore added, “PGI India
through its marketing efforts has positioned platinum as a rare and precious
metal, making it deeply aspirational. This strategy has helped attract young
consumers and offer something different and unique to existing ones. In 2018,
platinum grew by 35% and in 2019 we aim to make Punjab Jewels the one stop
destination and the 1st preferred store when it comes to platinum jewellery in
central India. The first quarter of 2019 already witnessed a growth of 30% in
platinum jewellery and we expect the category to grow by at least 50-60% in
2019”
Men’s
Jewellery:
Despite
industry disruptions from government legislation and liquidity issues, India
remains the fastest-growing platinum jewellery market with a significant 19%
year-on-year increase in partner retail sales. PGI works with the jewellery
industry to introduce new branded collections that open up consumer markets in
one of the most rapidly changing and youthful markets.
Whether
by re-defining the meaning of jewellery for a new kind of contemporary, equal
and inclusive love, or tapping into the aspirations of a new generation of men
who seek success beyond traditional norms, Indian consumers increasingly see
their values reflected in platinum’s rarity and modernity in a market dominated
by traditional gold jewellery.
The
jewellery industry’s embrace of platinum as an incremental opportunity that
attracts ayounger consumer to their stores while delivering higher revenue per
piece has resulted in significant distribution gains in 2018 that continue into
2019.
The
business opportunity with this segment has excited all our partners. Mr.
Suvankar Sen, Executive Director, SENCO Gold & Diamonds, said - “The beauty
and the superior craftsmanship of platinum jewellery appeals to almost all our
customer base. Apart from rings, bands and necklaces, platinum jewellery has
caught the fancy of Indian men for its sophisticated and unique designs.
Platinum jewellery is offering them differentiated design in a rare metal– it
makes for an exclusive purchase. Our men’s category has registered a growth of
95% in 2018 and we are expecting it to grow by 100% in 2019. Overall platinum
category, we expect it to register a healthy growth of100%.
Mr.
Arpit Rastogi, Director & Owner, Lala Jugal Kishore Jewellers, Lucknow
added, “Most of our new consumer walk-ins have been for platinum jewellery.
From Mangalsutra to engagement bands, they often come looking for in platinum.
A jeweller who doesn’t have platinum ends up losing out on a new customer. This
in itself showcases how strongly the metal has emerged as an aspirational
product in the last few years. It isn’t only about the amount of platinum a
jeweller sells, but it’s also about the number of walk-ins the metal attracts
that leads to bigger sales”.
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