Industry organisation the Platinum Guild International’s (PGI's) Platinum Jewellery Business Review for the fourth quarter of 2021 shows varying performances across the key platinum jewellery markets.

China’s economy softened in the last quarter of 2021, showing a slowdown with weak domestic consumption across most categories.

The growth of the jewellery market also slowed in the period, with gold taking share from other categories.

A key driver of the future health of the business and focus of PGI – platinum-branded collections – continued to outperform generic products through improved turnover and margins, the review indicates.

China’s jewellery market had slower sales growth during the period owing to sporadic outbreaks of Covid-19 and a continued softening of the economy.

The sales value of gold and silver jewellery (including precious metal and stones) from the National Statistics Bureau showed that, despite 2021 posting a 29.8% year-on-year growth,

Sales in December declined by 0.2% year-on-year, following a smaller increase of 5.7% year-on-year in November and 12.6% year-on-year in October, down from 15.6% year-on-year growth for the third quarter.

Further, India’s economy expanded by 5.4% year-on-year in the fourth quarter, supported by the festive season and the decline in new infections across the country.

With stronger momentum for the jewellery industry and better consumer sentiment, retail sales from PGI’s strategic partners are estimated to have expanded by 35% to 40% year-on-year in the quarter.

Japan’s economy rebounded as the State of Emergency was lifted in October.

The jewellery business in the period recovered for the third consecutive quarter, led by increased store traffic and some “revenge” shopping.

Unit sales of platinum jewellery rose modestly, led by high-ticket- and asset-type products.

The US economy in 2021 experienced the highest expansion rate since 1984, while facing high inflation and supply chain pressure.

Platinum had a successful quarter and a very good year as consumers showed their desire to buy products of lasting value and meaning, the report posits.

All PGI’s business partners have reported results that represent the highest yearly growth seen in many years.

MARKETING HIGHLIGHTS

In China, the review says, the technological innovation and quality improvement led by PGI has yielded positive results, such as increasing fabrication profit margin, expanding  premium products’ share and enhancing designs to attract young consumers.

This has resulted in the platinum category becoming more attractive to incumbent and new partners, despite the current period sales performance, it points out.

In India, PGI’s activation and marketing programmes are key to the business recovery of the strategic partners’ platinum business, the review indicates.

Followed by a Season of Hope campaign to drive conversion, new collections were launched and marketing campaigns across the three brands have deployed to create a positive buzz on platinum.

In Japan, the review indicates that “Platinum Woman” expanded in sales and gained recognition among the next generation of consumers.

The sales value for 2021 surged, owing to increased engagement from retail partners, the recruitment of a new partner and use of a new brand ambassador.

In the US, the review says, PGI’s strategic partners and Business Development Fund grant recipients reported significant sales growth.

Platinum Born, the self-buy branded collection, also had its most successful year, with the fourth quarter outperforming all of 2020 sales by nearly double. Sales were also higher than in 2019.