Minimal Platinum demand in India Q2

 

Platinum Jewellery to benefit from rest of 2020 

Recently Platinum Guild International (PGI) reported Platinum Jewellery Business Review (PJBR) for the 2Q 2020. Focussing on India centric key highlights are two, 1: Jewellers encountered greater cashflow pressure in Q2 and focused on making incremental sales to existing customers and moving inventory via e-commerce platforms. 

2: Platinum jewellery saw business lost for most of Q2, but is likely to benefit from retailers’ focus on high margin categories and conversion from gold customers to optimise return once business resumes. 

PJBR said for Platinum Jewellery in India that, Unit sales of all precious jewellery fell sharply, but platinum was the best performer (-46.4%) helped by competitive platinum prices and bridal demand. Platinum jewellery sold through mail order (including e-commerce and TV shopping) also jumped 46% YoY. 

“New Me, Platinum” TV shopping was successfully aired in April for 10 hours. Despite the pandemic, sales achieved positive results and proved an effective way of promoting of platinum to affluent shopaholics who are already interested in a metal only asset type of jewellery. 

Some department stores saw June sales for their jewellery floor recover despite zero in-bound tourist sales. They also saw some consumers choosing to re-invest travel funds into high quality jewellery that retains its value. 

Some couples who gave up hosting a wedding ceremony decided to spend more on bridal jewellery instead, raising average unit price for bridal jewellery. Retailers saw bridal demand starting to pick up in June. Platinum as the dominant metal in bridal jewellery is expected to benefit most from recovery in this category in the rest of 2020.