Platinum Guild International says that platinum jewelry demand is on the rise with young consumers and through self-purchasing.
Platinum Guild International (PGI) has released its Platinum Jewellery Business Review, revealing that, while platinum jewelry demand is still dominated by the bridal industry, female self-purchases, men’s jewelry purchases and purchases made by young buyers are on the rise.
The guild’s yearly report surveys over 1,000 manufacturers and retailers, as well as 1,000 consumers, to provide retailers and investors with information on how platinum jewelry is performing, while highlighting trends that will affect the four key platinum jewelry markets: Japan, China, the US and India.
PGI CEO Huw Daniel explained that of the four key markets, three experienced growth in 2018, while all four markets were able to grow their platinum jewelry offerings as the industry was able to branch out beyond its stronghold in the bridal market.
The report notes that, despite what has been believed about millennial consumers, younger generations are becoming more interested in the precious metal as their jewelry choices expand.
Not surprising was the reveal that Japan continued its trend of having the highest per capita consumption of platinum jewelry, taking the title for a sixth straight year in 2018. Platinum jewelry retail sales climbed 1 percent year-on-year, with the main demand catalyst being heavier bridal rings.
Additionally, the report points out that despite industry disruptions from government legislation and liquidity issues, India continues to own the fastest-growing platinum jewelry market, with a substantial 19 percent year-on-year increase in partner retail sales last year.
Retailers in the US also experienced gains, reporting 11 percent growth for platinum jewelry in 2018. The North American country owes the increase to a strong economy that is matched with a favorable metal price and ongoing marketing initiatives.
China, on the other hand, was the only country to be in the red when it comes to the metal’s annual retail performance. In 2018, retail sales of platinum jewelry slipped 7 percent year-on-year, with PGI reporting that the main cause of this was due to the plainness of much of the platinum jewelry, which did not match the needs of Chinese consumers.
Platinum jewelry sales by weight in China went through a fifth consecutive year of declines, thanks to an industry that continues a necessary structural change in response to evolution within the macroeconomy and retail consumption.
As mentioned, self-purchasing, particularly among female consumers, has become a key area for future growth around the world, most notably in the US.
PGI also notes that, despite some weak sentiment surrounding the sector, many retailers revamped their platinum offerings in 2018, resulting in new collections and increasing growth in the number of units sold among various PGI partners.
As of 4:18 p.m. EDT on Wednesday (May 22), platinum was trading at US$803 per ounce.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.