PGI CEO Huw Daniel at the launch of the 2019 Platinum Jewellery Business Review
Platinum retains its position as the metal of choice of jewellery connoisseurs and traders globally, from important figures in history to discerning millennials, the Platinum Guild International’s (PGI) 2019 Platinum Jewellery Business Review (PJBR) revealed.
The review cited the preference for platinum among consumers and the jewellery industry’s efforts to satisfy this desire for meaningful jewellery pieces, with a focus on men’s jewellery, young consumers and self-purchase.
The annual PJBR surveyed over 1,000 manufacturers and retailers, and more than 1,000 consumers to assess the platinum jewellery sector’s performance in 2018 and provide an outlook for 2019. It also highlighted trends that are likely to shape the industry in the four key markets of Japan, China, the US and India.
“This survey demonstrates how platinum continues to sit atop global consumers’ precious jewellery metal hierarchy as the metal of highest perceived value, making it the natural choice for jewellery that holds a special place and meaning in their lives,” said PGI CEO Huw Daniel. “Three of platinum jewellery’s key markets experienced growth, and all four markets witnessed expanded platinum jewellery offerings as the jewellery industry seized opportunities to go beyond platinum’s stronghold in the bridal sector.”
In Japan, platinum jewellery retail sales increased by 1 percent in 2018 from 2017 with bridal rings as growth driver. PGI said continued collaborations with influencers will boost platinum jewellery’s desirability among young and affluent buyers beyond the bridal jewellery sector.
India, for its part, saw a 19 percent year-on-year rise in partner retail sales, making it the fastest-growing platinum jewellery market, according to PGI. Indian consumers increasingly see their values reflected in platinum’s rarity and modernity amid a market dominated by traditional gold jewellery, it added.
Retailers in the US meanwhile reported an 11 percent growth for platinum jewellery in 2018, thanks to a strong economy, a favourable metal price and effective marketing initiatives. Beyond the bridal sector, which remains a platinum stronghold, self-purchase is a key area for future growth around the world, most notably in the US.
Platinum jewellery sales by weight in China experienced a fifth consecutive year of decline as the industry continues a structural transition in response to changes in the macroeconomy and retail consumption, PGI said. Despite overall weak sentiment, many retailers revamped their platinum offering in 2018, with new and innovative designs, incorporating alternative materials, modular interactive parts and reimagined traditional Chinese motifs. These new collections are driving growth in the number of units sold among PGI’s partners, and are repositioning platinum to be as competitive in both turn and revenue as the highest performing categories in store, noted PGI.