Platinum Guild International (PGI) globally piloted a research to track consumer sales and released its first ‘Retail Trade Barometer’ for platinum jewellery. The Barometer is the first independent research of its kind to analyse and forecast global trends in the platinum jewellery market from the perspective of retail sales. In India, the Barometer was reviewed and reported by StratWon Business Consulting and the sample covered a cross section of retailers from chain stores and independents, who account for 50 per cent of the platinum jewellery sales.
The key findings of PGI’s 2014 Retail Trade Barometer for India were:
Platinum Jewellery (PJ) sales 2013
2013 saw strong growth of +41 percent in both chain stores and independents grew at the same pace despite a slow market, platinum was the fastest growing category in the Indian jewellery sector.
Consumer demand on rise: 2013 growth drivers
Footfall driving category and the volume driver was the Platinum Day of Love (PDOL) – Couple Bands with +35 percent growth with innovative designs, concepts linked to eternal love through the PDOL campaign.
Another key driver for sales was the men’s jewellery range (chains and bracelets) grown rapidly at +53 percent with platinum being a lead category within men’s jewellery.
Platinum Jewellery Retail Trends
Rings, couple bands for men and women account for 60 to 65 of percent the Platinum Jewellery stocks.
While couple bands continue to be the volume driver as they are fast moving items, most retailers intend to increase stocking of heavier items, which include men’s range, necklaces, bangles etc. for increasing their platinum jewellery sales volumes and average ticket sizes.
India Retailer Outlook For 2014
Retailers are bullish about 2014 with platinum jewellery expected to be fastest growing sector to continue to a further +35 percent, ranging from low of +25percent to a high of +60percent.
Most retailers want to push men’s range, but select players also want to see traction in bangles.
The uncertainty caused by the general elections and on the new government policies on imports, taxes, the market is described as being optimistic but anxious.
PGI Global Outlook
Retail demand for Platinum Jewellery is forecast to grow by 5.3 percent across the 4 key global markets (China, India, Japan and the USA, which accounted for 92 percent of global demand in 2014) China, the world’s largest Platinum Jewellery market, is forecast to grow 5 percent in 2014 (2013: 3 percent growth)
Both mature markets are also anticipated to grow in 2014. Japan is forecast to grow by 1.2 percent and the USA by 11 percent.
Nicholas Graham Smith, COO, PGI commented, “The Indian Retail Trade Barometer’s results indicate very strong consumer desire for platinum jewellery. The Indian market is still relatively small in a global context, but has been growing at an exponential rate. The outlook for 2014 and beyond is also extremely positive. There are many factors which provide the basis for continued growth – the success of the Platinum Day of Love programme, increased distribution across India with more retailers stocking platinum, product innovations and exciting designs, and platinum’s powerful emotional connection with consumers.”
Vaishali Banerjee, Country Manager India, PGI said, “The retail forecast for 2014 looks very promising and there seems to be an opportunity to take this further. Firstly, we have been very successful at utilising digital media and integrating marketing programmes that have positioned it well amongst the younger audience, making it emotionally significant for them. Once the knowledge of the value of platinum deepens, the demand will increase. Platinum Day of Love couple bands is the volume driver. Men’s jewellery is a nascent category and it delivered very strong figures – some retailers reported doubling their sales. Also, many have shown interest in stocking heavier items in terms of jewellery and PGI is evaluating the next segment of growth for the market.”
Vijay Jain, CEO, ORRA, said, “Over the years, PGI has done a remarkable job in building traction for platinum in the country. This is reflected not only in the phenomenal growth of platinum, but in it becoming an integral part of purchase, whether engagement rings (such as ORRA Platinum Couples) or even festive and auspicious occasions such as Diwali. The trends work at a consumer demand level either real or potential such as Platinum Love Bands and in terms of design forecast given PGI’s strong presence both in India and globally. For 2014, independent of the outcome of the new government and statutory regulations, there are certain concepts, which effectively allow us to build a strong proposition with platinum engagement bands, anniversary gifting and jewellery for men.”
G. R. Ananthapadmanabhan, MD, GRT Jewellers commented, “The platinum jewellery sales have been on an upward trend and 2013 witnessed high growth for this category. Besides the couple bands the interest amongst men for platinum jewellery is growing at a fast pace. Our focus for this year will continue to cater to this growing consumer demand with exclusive platinum designs of rings, chains and bracelets that appeal to men. With the support of the PGI’s communication program and considering the market trends and consumer behaviour, we expect the scope of this precious metal to develop further in 2014.”