According to Platinum Guild International (PGI)’s Q1 2019 Platinum Jewelry Business Review (PJBR), the platinum jewelry industry across key markets are becoming increasingly innovative and focusing on the bottom line. The fastest growing market continues to be India thanks to its business model allowing platinum to deliver higher margin than other jewelry categories.
“Volume is only one out of many success indicators. Retailers look to other metrics to tell them how well their business is doing, notably margin and turn – metrics that platinum can compete in, given the right mix of product and marketing.” says Platinum Guild International CEO, Huw Daniel.
Overall, US retail sales at jewelry stores fell compared to Q1 2018, but PGI’s strategic partners saw strong growth in platinum jewelry sales at 9% year-on-year, driven by a combination of the low metal price, training for the sales executives on how best to present this unique precious metal to consumers, and dedicated marketing to jewelers and consumers. Growth has expanded beyond bridal to female self-purchase propelled by PGI’s Platinum Born brand, offering retailers and consumers more options in platinum beyond traditional diamond jewelry.
Japan’s jewelry sales started to slow but picked up again in March. Platinum jewelry sales in units grew 0.3% year-on-year in part because of the low platinum price, and by taking market share from white gold, which continues to decrease. Bridal jewelry sales are expected to bounce this summer with more weddings during the first year of Japan’s new Imperial reign, the Reiwa era. PGI launched a new branded platinum collection for affluent mature women which has expanded across 40 retail points of sale. Hello Me Platinum celebrates the woman who discovers the joys in life as she accomplishes her dreams.
India’s jewelry industry faced headwinds, struggling with both tight liquidity and new regulation on cash spending ahead of the election in Q2. Conversion strategies and marketing campaigns aimed at young consumers drove platinum retail sales up 15% year-on-year in Q1, while PGI’s strategic partners saw their platinum jewelry business grow at a higher rate of 32% year-on-year.
China’s overall store traffic slowed, affecting growth of retail sales and jewelry consumption in the first quarter. The decline in PGI’s retail partners’ platinum sales slowed to -7% year-on-year, while innovators reported improvements in margin and turnover of their platinum jewelry, with some collections turning once a month and delivering margins on par with the highest margin categories. Leveraging platinum’s strong association with love, PGI and a Hong Kong based retailer co-launched a new motherhood / baby jewelry collection in more than 1,000 stores across China in May 2019. This piece-priced collection is conceived to deliver higher margin and turn than weight-priced generic platinum.
Platinum Guild International works closely with partners to identify opportunities and address barriers to growth that are specific to each market. The Platinum Jewelry Business Review provides quarterly updates that include information for the industry.
About Platinum Guild International
Founded in 1975, Platinum Guild International (PGI) is the world’s leading authority on the platinum jewelry industry and is dedicated to creating, expanding and strengthening consumer and trade markets for platinum jewelry. PGI has specialist teams dedicated to raising awareness of platinum jewelry, developing demand for platinum jewelry through consumer and trade facing programs in the four key jewelry markets of China, India, Japan and USA. For more information, please visit www.platinumguild.com.
