Robust Demand for Platinum Jewellery in India

Mr. Huw Daniel, CEO of the London based Platinum Guild International (PGI) has recently said that demand for platinum would remain robust in India in the second half of 2016 as preference for the metal grows among young consumers amid a 10% to12% price differential with gold.

Platinum jewellery retailers observe that this is driving the growth of platinum. Moreover, Evara the bridal line of platinum jewellery which was earlier available at INR 4 lakh, is now available at INR 2 lakh. This has become popular among young brides. Although the platinum jewellery has witnessed a mixed trend in global markets in the first half of 2016.

“The demand for Platinum Jewellery is looking very positive this year. Young consumers are loving this metal. The growth in this particular segment is much higher than last year. New addition of Bridal range of ‘Evara’ has also given boost to the sales. We see minimum growth of 25% in sales this year,” says Mr. Prayas Dugar, Director of Kolkata based Indian Gem & Jewellery Creation.

He further says, “Evara is getting a very good response from consumers. Stylish & Beautifully crafted design is already attracting them. Necklaces & Men chains are very much in demand. We feel Platinum is already new style statement for young brides.”

“Platinum has a very different segment of consumers. Consumers are already aware about of this niche metal Platinum. Usually consumers step into the showroom & ask about the platinum. We feel that the platinum already has ready market because of the regular marketing & advertising done by the PGI. We don’t face much problem in convincing consumers for Platinum,” Mr. Prayas adds.

A research for the annual retail barometer for PGI was conducted by a third-party agency, Stratwon Business Consulting, between January and February 2016. It says the studded platinum jewellery accounted for 53% of the sales growth in 2015. The research covered 21 more retail companies with nearly 310 retail outlets in platinum markets across India.

Mr. Anuj Sharma of SRS jewels says, “Rings are the fastest moving categories in platinum, followed by earrings and pendant sets. We have also seen increase in men buying platinum chains and bracelets.”

Talking about the demand of platinum jewellery this year, Mr. Sharma says, “It is very much robust this year and is expected to grow by 27% to 30% in comparison with last year, thanks to the increasing preference of the platinum over gold among young consumers.”

‘Of course, gold still enjoys a huge preferential lead over platinum because of its investment value,” he adds.

Price drop in platinum is helping Indian consumers upgrade from 18-carat studded gold jewellery to platinum jewellery. With increasing awareness among consumers in tier 2 and 3 towns, platinum has an ample growth opportunity this year.

Mr. Chetan Jain, Director of Nikita Jewellers, Mumbai says, “The sales growth of platinum jewellery this year would reach between 10% to 15% in comparison to last year. PGI provides us good marketing support in form of seasonal advertisements which help us push the sales figures further. We also give our full efforts in convincing the consumers to buy platinum jewellery instead of gold.”

Imports of platinum for jewellery are likely to go up 25% this year to touch 8.3 tonne. On the other hand, platinum demand in China is not expected to see any growth in the second half of the year, though the 3-4% fall in demand seen in the first half could be arrested, Mr. Daniel has revealed.

Sales of platinum jewellery in India grew by 16% in the first half as a 42-day strike called by jewellery makers against imposition of a 1% excise duty on gold and diamond jewellery affected sales. But in the second half, platinum jewellery sales will grow between 20 and 30%, Observers feel.

Posted by Suresh Chotai