PGI expect 15-20% growth in India in 2019; aims to expand in tier 2 cities
According to PGI's 2019 Platinum Jewellery Business Review, young consumers, men’s jewellery and female self-purchase will build upon platinum’s pre-eminence in bridal jewellery to drive future demand
Today Platinum Guild International (PGI) releases the 2019 Platinum Jewellery Business Review (PJBR) revealing the aspiration for platinum among today’s consumers, and the jewellery industry’s efforts to satisfy consumers ‘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 consumers to 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 line 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.
The report revealed that contrary to popular belief, younger generations are finding meaning in jewellery that embodies their aspirations and captures their memories. Just like their predecessors, millenials are turning to this rare metal but their choices are being 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.
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 a younger consumer to their stores while delivering higher revenue per piece has resulted in significant distribution gains in 2018 that continue into 2019.