HONG KONG – The latest Platinum Jewellery Business Review(PJBR) Q1 2023 indicates improved sentiment and positive consumption momentum among affluent jewellery buyers in platinum’s key markets, as well as a continued recovery from the effects of the COVID-19 pandemic.
Platinum Guild International (PGI) has implemented strategic marketing initiatives and programmes specially designed for each country to take advantage of the improved sentiment to boost sales and strengthen the awareness and desirability of platinum.
Huw Daniel, CEO of PGI, said in the report:
“As the world transitions into a post-pandemic phase, consumers have shown a renewed interest in discretionary spending on travel and hospitality in many markets, but precious jewellery remains significant in people’s lives to mark life milestones and personal achievements. PGI’s partners are working with us to encourage consumers to choose platinum for its unique qualities, including the shining brilliance, tenacious strength, and long-lasting value of this rare precious metal. Through marketing programmes and branded collections, PGI and its partners continue to deliver strong results during the key festival shopping periods and wedding seasons.”
A Market-by-Market Platinum Jewellery Industry Review
While the overall jewellery industry only saw moderate growth due to an inauspicious buying period and the increase in gold prices, platinum again delivered a steady performance in the first quarter of 2023 in India, with PGI’s strategic partners reporting average growth in platinum jewellery sales of 20% YoY. The growth can be attributed to targeted retail activations for branded collections and successful training programmes among retail partners, which helped in higher conversion and upselling from the gold section due to high gold prices.
With the upcoming key jewellery-purchasing occasions like Akshaya Tritiya and the summer wedding season, as well as the upcoming Season of Love 2023 trade activation programme, retailers expect positive momentum for platinum as a category to continue to drive further growth.
China’s jewellery sector gradually recovered in the first quarter following the end of pandemic restrictions, led by gold sales that can be attributed to the traditional peak season for pure gold, along with investment purchases.
Platinum retail sales among PGI partners declined at a slower pace of 11% YoY in the first quarter, led by branded collections and exclusive co-developed products that are differentiated in the market. PGI introduced the flagship branded collection, Pt Moment2023 products, in a trade launch event followed by a Spring/Summer Buyer-Seller Meet in late March, exhibiting 1,200+ new SKUs of platinum products from 15 factories. Retail partners’ strategic marketing programmes during the key festivals also supported driving sales and delivering positive results, despite an overall decline in the category.
Jewellery sales continued to expand in Japan for the eighth consecutive quarter, and sales of platinum jewellery showed a stronger recovery in the first quarter of 2023 compared to the previous quarter, up 1.4% YoY. Men’s jewellery led the category growth, while Kihei chains, bracelets, earrings, fashion rings and pendants/necklaces continued to do well.
More jewellers in Japan invested in new product development for platinum pieces due to the hike in gold prices. Platinum Woman, the flagship brand for young Japanese women, started 2023 with a strong first quarter, seeing retail partners’ sales rise by double-digits against the same quarter of 2022.
The United States
The jewellery industry experienced phenomenal growth following the COVID-19 shutdown in 2020. In the platinum jewellery category, sales in Q1 2023 remained strong despite a slight decline from historical levels, down 8% YoY.
PGI’s business development grant partners had a positive start to 2023, with sustained growth in the first quarter. PGI also experienced more requests for platinum education for sales associates due to the increased popularity of platinum jewellery among consumers and retailers stocking more platinum inventory.
About Platinum Jewellery Business Review
The Platinum Jewellery Business Review (PJBR) is an annual report by Platinum Guild International (PGI), analysing retail sales of platinum jewellery, trade performance and consumer sentiment in PGI’s four key international platinum jewellery markets of China, India, Japan and the US.
The PJBR is updated quarterly throughout the year. Research for this report is conducted via surveys among a large sample of platinum retail jewellers and manufacturers in each market.