PGI releases findings of the 2017 Platinum Jewelry Business Review demonstrating platinum market demand growth continues to be strong in the U.S.
Platinum Guild International published the findings of its 2017 Platinum Jewelry Business Review revealing key trends – bridal and self-purchasing – are emerging to contribute to platinum demand growth in the United States. Compiled by industry analysts, the survey reports strong consumer retail sales growth for 2017, outperforming gold.
“We saw above-market growth for platinum jewelry in three out of four key markets in 2017, including the U.S. This trend is tied to a robust global economy and historically low platinum prices, together with an increasing preference for platinum among younger consumers, which indicates growth potential in the platinum jewelry sector in 2018,” says CEO Huw Daniel of Platinum Guild International.
Bridal Market:
In the U.S., the economic recovery and a bullish consumer sentiment has benefited the total jewelry industry, leading to the 5th consecutive year of growth for platinum jewelry consumption at 11%. The growth mainly comes from strong sales in bridal jewelry, including engagement and wedding rings. Among the markets where PGI operates, the U.S. is unique in that jewelry is primarily driven by diamond sales. The U.S. is still the number one market for diamonds and presents significant benefits and opportunities for platinum, especially in the bridal jewelry category. In 2018, additional growth is expected to derive from initiatives of promoting the use of platinum crowns that hold diamonds more securely, regardless of the choice of metal for the rest of the ring.
PGI USA’s marketing efforts resulted in 10% growth in platinum crown sales in 2017.
Self-purchase:
Although the majority of the platinum jewelry sold in the U.S. is bridal, PGI USA has also helped introduce a new platinum collection of chain-based necklaces as part of the Platinum Born collection, to target women buying jewelry for themselves, in order to continue to optimize local market growth opportunity. As published in the De Beers Diamond Insight Report in 2017, 33% of non-bridal, diamond jewelry is purchased by women for themselves; a dramatic increase, growing more than one third since 2005.
“We have felt for a long time that there was room in the marketplace for a beautifully designed, well made, price-friendly platinum collection,” Jenny Luker, Platinum Guild USA’s President, explained. “After concluding extensive focus groups and market research, Platinum Born fulfilled what the female self-purchase consumer wanted.”
2018 Outlook:
With the current market conditions and historically low platinum price, platinum jewelry in the US is estimated to increase an additional 8 – 11% in 2018.
Platinum Jewelry Business Review (PJBR) The Platinum Jewelry Business Review is an annual report completed by PGI based on survey conducted by independent sources, specifically analyzing retail sales and trade sentiment in the four major platinum jewellery markets of India, China, the US and Japan. The survey, conducted in Q1 2018, polled more than 90 manufacturers, over 1,400 jewellery retail companies that together operated around 13,000 retail outlets in the four main markets. The survey reveals consumer retail sales data for 2017 in order to track the marketing campaign efforts driving platinum jewelry sales, which is the second largest demand source for platinum globally after automotive. The full report is available here: http://www.platinumguild.com/reports/2018/P/Platinum%20Jewellery%20Business%20Review%202017.pdf
