Young consumers, men’s jewellery and female self-purchasing will build on platinum’s entrenched standing in bridal jewellery to drive future demand, Platinum Guild International (PGI) reports.
The guild’s yearly ‘Platinum Jewellery Business Review’ surveys over 1 000 manufacturers and retailers, as well as 1 000 consumers, to provide an in-depth analysis of platinum jewellery’s performance, highlighting trends that will shape the industry in each of the four key platinum jewellery markets of Japan, China, the US and India.
Three of the key platinum jewellery markets experienced growth, and all four markets witnessed expanded platinum jewellery offerings as the jewellery industry seized opportunities to go further than its stronghold in bridal during 2018, PGI CEO Huw Daniel says.
Contrary to popular belief, Millennial consumers and younger generations are showing a taste for platinum as did their predecessors; however, their choices are being expanded into multiple jewellery categories.
Japan continued to have the highest per capita consumption of platinum jewellery for a sixth year of consecutive growth, with platinum jewellery retail sales up 1% year-on-year. The key demand driver was heavier bridal rings.
Further, despite industry disruptions from government legislation and liquidity issues, India has remained the fasted growing platinum jewellery market, with a considerable 19% year-on-year increase in partner retail sales.
Retailers in the US, meanwhile, reported 11% growth for platinum jewellery in 2018, owing to a strong economy, a favourable metal price and continuous marketing initiatives.
Beyond the platinum stronghold of the bridal sector, self-purchasing is a key area for future growth around the world, most notably in the US.
Further, platinum jewellery sales by weight in China experienced a fifth consecutive year of decline as the industry continues a necessary structural transition in response to change in the macroeconomy and retail consumption.
Despite overall weak sentiment, many leading retailers revamped their platinum offering in 2018, with these new collections driving growth in the number of units sold among PGI’s partners.