The Platinum Guild International (PGI) last week released the findings of the 2017 Platinum Jewellery Business Review which reported that platinum market demand growth has been strong in India, with retail sales up 21% year-on-year (y-o-y) and fabrication demand growing at 34% y-o-y.

The study also  revealed that  young consumers and the bridal segment  together are emerging as the drivers for  platinum demand growth in 2018.

The study was compiled by independent platinum market experts and industry analysts, PGI said, and noted that the survey reports strong consumer retail sales growth in the India, U.S. and Japan for 2017 --  even outperforming gold in some areas.

 “We saw above-market growth for platinum jewellery in three out of four key markets in 2017,” commented PGI CEO Huw Daniel.  “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 jewellery sector in 2018.”

Vaishali Banerjee, Managing Director India, PGI, said:  “Platinum growth in India for 2017 has been very encouraging. Platinum today  resonates with young India. The rarity of the metal, the designs inspired by global trends and the distinct emotional positioning of platinum makes it the preferred choice of millennials. The outlook for 2018, is strong given that both Platinum Love Bands and Platinum Evara are getting embedded in our culture and the business opportunity that platinum offers to retailers is incremental and sustainable.”  

The study also found that  India has become the engine of platinum jewellery growth globally. “Despite continued challenges from new legislations, the industry has seen retail sales reported in platinum ounces up 21% year-on-year for the Platinum Guild International programme and fabrication ounce demand growing at 34% Year-on-Year,” PGI stated. “A strong preference for platinum among young consumers is one of the strongest contributors to the growth of platinum jewellery demand in India. For young India, PGI has created a distinct positioning for platinum versus gold, tapping into modern couples’ desire for jewellery that better represents the bonds of love in a modern relationship between equals. Through the Platinum Days of Love Campaign, platinum has become the metal of choice among today's young Indian consumers shaping the country's culture and fashion.”

Commenting on the millennial trend, Senco Gold & Diamonds  Director, Suvankar Sen, said, “Today a jeweller who retails platinum has a clear edge because of the millennial crowd it pulls in. Platinum holds a deeper meaning in their lives and they are very well aware about the metal. This generation wants novelty and versatility in jewellery which platinum has in abundance to offer. We are extremely bullish on platinum jewellery growth in our country, on the back of young India.”

 Also, bridal markets have powered  platinum jewellery demand across India, China, Japan and the U.S., the study found.

In India, platinum has gained a foothold in what was considered a  gold-dominated wedding category. “The introduction of a new branded segment, Platinum Evara, a modern platinum jewellery collection gifted to the bride and groom before the wedding day has carved out a distinctive niche for platinum and created a new jewellery segment for the industry,” PGI revealed.

Commenting on the bridal trend Pratap Kamath, Managing Director, Abaran, said: “Jewellery is an integral and inevitable part of Indian weddings. So far it was only gold that dominated this scenario. However, PGI’s new branded program is creating a new tradition with platinum. Consumers at our store are genuinely purchasing platinum to gift or welcome their new members into their family. This has resulted in higher volumes and given us a real competitive edge.”

The Platinum Jewellery Business Review,  an annual report compiled by PGI is based on surveys conducted by independent sources, specifically analysing fabrication ounce demand, 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, 1,400 jewellery retail companies that together operated around 13,000 retail outlets in the four main markets,” PGI said.

Pic cap: Platinum Evara ad