Preference for Platinum Jewellery Growing in India

EVARA Platinum Blessings LOGO-More and more Indian jewellery lovers are now changing their priority and opting for platinum jewellery over gold. The Second Annual Retail Trade Barometer (Study Report) published by the Platinum Guild International (PGI) proves this shift in trends.

The Study Report prepared by independent platinum market experts and industry analysts, discloses the consumer retail sales data of platinum jewellery in 2014 and vital projections for 2015; reviewed and reported by StratWon Business Consulting.

The Report gives an exclusive view of platinum retail sales. Platinum jewellery is the second largest consumer of platinum in the world (35%) after the auto-catalyst market (36%). It has covered over 400 jewellery retail companies with close to 40,000 retail outlets in the four main global markets of China, India, Japan and the USA. The research was conducted between January and February 2015.

The key-findings of the Retail Trade Barometer, made public recently by the PGI reveal that platinum has achieved global growth of +28% in weight terms in 2014. The Report says that despite a slow start in 2014 and general elections in India, growth in platinum sales have been achieved across different types of outlets. PGI’s strategic retail partners have achieved a growth of +33% during 2014 while the other outlets grew by +19%. The Report further states that strong growth in 2013 and higher gross margins in 2014 have contributed to the India market seeing a compounded annual growth of 80% during last two years.

Vaishali BanerjeeAnalyzing the Report, Ms. Vaishali Banerjee, Country Manager India, PGI says, “Given the overall market conditions, first half of the year remained subdued but platinum growth for 2014 has been very positive and consistent. This growth has been achieved from continuous improvement of consumer sentiment, higher conversion at the retail stores and improving the disposition for platinum amongst our key target audience. With the launch of Platinum Evara on the back of strong consumer research at the end of the year we are looking at further accelerating growth. The initial response to this new category has been very positive.”

There has been a striking shift in the buying trend for precious metal jewellery. Consumers are now leaning more towards everyday wear and gifting which has led to an acceptance of platinum in this segment. The primary focus of retailer’s has remained bridal jewellery because of the higher price per piece. The sales contribution and higher gross margins have prompted select retailers to rethink and change their approach in promoting their in-store platinum counters.

Specifying India’s outlook, the Report says that platinum demand in India would further grow by 23% in 2015. PGI has successfully launched Platinum Evara during December 2014 in India which targets the Indian Bridal jewellery market. According to PGI, the initial response for Evara has been positive and it should contribute to strong growth figures for 2015, over and above the 23%. PGI Retail partners are optimistic about 2015 with all types of jewellery, especially platinum and diamond jewellery.

Ms. Banerjee further says, “The outlook for 2015 is strong given that platinum resonates with young India. Platinum Love Bands are getting embedded in the Indian culture and now with the successful launch and roll out of Evara, platinum offers an opportunity for retailers to bring in new consumers to grow their business while delivering a superior consumer experience.”

Huw Daniel, CEO of PGI says, “Sustained growth in the platinum jewellery market is significant, as the jewellery category represents 35% of all global demand for platinum. 2015 is expected to achieve higher growth. India is very exciting and PGI is bullish about the platinum prospects in the country, particularly in the light of the launch of the new bridal segment, Platinum Evara.”

Posted by Suresh Chotai