Platinum Guild International (PGI) has published the Q2 2021 Platinum Jewellery Business Review (PJBR), which shows that platinum jewellery, especially branded collections, remains resilient amidst a still challenging situation in retail in most markets.
Based on PGI’s quarterly survey among manufacturers, retailers and jewellery consumers, the Q2 2021 PJBR report examines the sustained positive sentiment in precious jewellery consumption in Japan, the US and China despite headwinds from the new Delta variant.
For the full PJBR Q2 report, please visit: https://platinumguild.com/research-publications/platinum-jewellery-business-review/
A market-by-market platinum jewellery industry review
Strong consumer spending supported by vaccinations and economic recovery brought remarkable growth in jewellery retail sales, fuelling positive trade sentiment in Q2. According to the Q2 consumer survey, confidence in in-person shopping has also improved in the US: 63% of Americans felt completely or mostly comfortable about in-store shopping for jewellery in Q2.
The Japanese jewellery market showed remarkable growth in Q2 2021, with an increased comfort level for jewellery sales in-store. Q2 2021 jewellery sales saw a significant jump of 70.7% in units, compared to the worst-hit period of COVID-19 in Q2 2020, while platinum jewellery unit sales also rebounded strongly by 68.5%.
The second wave of COVID-19 cases has caused another lockdown that disrupted the overall economy and the jewellery market in Q2 2021 in the second year in a row. Reopened in June, most jewellery retailers are prepared to make a comeback in Q3 by focusing on immediate demand with wedding dates and key festivals between July and September. PGI estimates platinum jewellery sales from key strategic partners in Q2 to stay flat or register a small growth compared with the same period last year. They have taken the initiative to build awareness around the reopening of their stores and assure customers to ensure vaccination of their front-line employees and updated safety protocols as a key priority.
In Q2, the overall Chinese jewellery industry has seen a continued year-on-year increase, albeit at a slower rate, against slowing overall economic growth. Platinum gem-set fabrication increased compared with the same quarter last year, driven by pent-up bridal demand and the launch of new collections and designs. Plain platinum jewellery fabrication was down year-over-year, partly due to market consolidation and a narrowed gold/platinum price gap.