Image supplied by Platinum Guild International, Platinum Born Collection
The latest Platinum Jewellery Business Review (PJBR) for the first quarter of 2023 reveals an optimistic outlook and increasing consumption among affluent buyers in platinum’s key markets. The report, released by Platinum Guild International (PGI), indicates a continued recovery from the COVID-19 pandemic’s impact on the industry. PGI has successfully implemented strategic marketing initiatives tailored to each country, capitalising on improved sentiment to drive sales and enhance the desirability and awareness of platinum.
Huw Daniel, chief executive officer of PGI, highlights the enduring significance of precious jewellery in people’s lives, especially during celebrations and personal achievements. “As the world transitions into a post-pandemic phase, consumers have shown a renewed interest in discretionary spending on travel and hospitality in many markets, but precious jewellery remains significant in people’s lives to mark life milestones and personal achievements. PGI’s partners are working with us to encourage consumers to choose platinum for its unique qualities, including the shining brilliance, tenacious strength, and long-lasting value of this rare precious metal. Through marketing programmes and branded collections, PGI and its partners continue to deliver strong results during the key festival shopping periods and wedding seasons.”
Despite generally moderate growth in the overall jewellery industry, platinum demonstrated a steady performance in India during the first quarter of 2023. PGI’s strategic partners reported an average year-on-year growth of 20 percent in platinum jewellery sales. This success can be attributed to targeted retail activations for branded collections and effective training programs for retail partners. These initiatives have facilitated higher conversion rates and upselling from the gold section, particularly due to high prices. With upcoming jewellery-purchasing occasions like Akshaya Tritiya, the summer wedding season, and the Season of Love 2023 trade activation program, retailers expect positive momentum for platinum to continue driving growth in the category.
China’s jewellery sector gradually recovered during the first quarter as pandemic restrictions eased. Gold sales played a significant role in this recovery, particularly during the traditional peak season for pure gold and investment purchases. While platinum retail sales among PGI partners experienced a slower year-on-year decline of 11 percent, the decline was offset by the success of branded collections and exclusive co-developed products that stand out in the market. PGI’s flagship branded collection, Pt Moment 2023, was introduced through a trade launch event followed by a Spring/Summer Buyer-Seller Meet. The event showcased over 1200 new stock-keeping units (SKUs) of platinum products from 15 factories. Despite an overall decline in the category, strategic marketing programs during key festivals contributed to positive sales and results.
Japan’s jewellery sales continued their growth trend for the eighth consecutive quarter, with platinum jewellery making a more robust recovery in the first quarter of 2023 compared to the previous quarter, with a year-on-year increase of 1.4 percent. Men’s jewellery played a significant role in driving this growth, while Kihei chains, bracelets, earrings, fashion rings, and pendants/necklaces also performed well. As gold prices rose, more jewellers in Japan invested in developing new platinum pieces. Platinum Woman, the flagship brand for young Japanese women, had a robust start to 2023, witnessing double-digit sales growth among retail partners compared to the same quarter in 2022.
Despite a slight decline from historical levels, the platinum jewellery category in the United States maintained strong sales in the first quarter of 2023, down eight percent year-on-year. The jewellery industry experienced remarkable growth following the COVID-19 shutdown in 2020. PGI’s business development grant partners had a positive start to the year, with sustained growth in the first quarter. Additionally, the increased popularity of platinum jewellery among consumers led to greater demand, resulting in more requests for platinum education among sales associates. Retailers are stocking more platinum inventory to meet the rising consumer preference for precious metals.
The improved sentiment and positive consumption momentum seen in the platinum markets, as indicated by the Platinum Jewellery Business Review, reflect the continued recovery of the industry from the effects of the COVID-19 pandemic. PGI’s strategic marketing initiatives and country-specific programs have played a crucial role in boosting sales and strengthening the desirability of platinum jewellery. With upcoming events and trade activation programs, the outlook remains optimistic for further growth in the platinum category in India, China, Japan, and the US.