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HONG KONG, Dec. 8, 2020 /PRNewswire/ -- Platinum Guild International's (PGI) latest Q3 Platinum Jewellery Business Review of manufacturing and retail partners across key markets indicates that although low prices have been a trigger to encourage buying, it has been product innovation and emotional connection of platinum jewellery that captured domestic markets of high spenders. Globally, this rapid recovery in Q3 has been primarily driven by sustained orders among mainland Chinese retailers and a demand pick-up in the US.
Left to right: Platinum Evara 2020 collection (India), Le Vian Chocolate diamond ring in platinum (USA) and Platinum Moment 2020 collection (China)
"Our strategic partners across markets are continuing to report an improvement in sales driven primarily by an abundance of exciting new platinum products that are new to the market and are repositioning platinum for today's younger consumers. With encouraging results from mainland China and the US, we remain optimistic about the upcoming festive and holiday seasons. We continue to urge the industry to focus on creating ever stronger emotional connections through consumer-centric designs and marketing," says Huw Daniel, CEO of PGI.
China
Stronger momentum in mainland China in Q3 compared with the previous quarter has boosted the recovery of retail and jewellery sales largely driven by the effective control of the pandemic and the return of store traffic. Platinum jewellery fabrication jumped 13% year-on-year, due to replenishment of orders from leading retailers who launched new collections, with new interest in platinum expressed by distributors and smaller retailers. Retail sales of platinum jewellery from PGI's partners also recorded 5% year-on-year growth in Q3, on the back of the return of consumer spending in the domestic market during key shopping occasions and amid a rebound in bridal demand.
PGI also leveraged the previous success of the Reboot programme, an omnichannel promotional store-based event to boost trade confidence in the new generation of platinum jewellery leveraging creative designs and new alloy innovations. PGI held roadshows across three provinces in the third quarter, to accelerate new product stocks in order to boost sell-through and sustain the post-COVID recovery.
As all jewellery stores resumed normal operations, the growth of online jewellery sales volume slowed down. Jewellery sales on popular Chinese online shopping platform, Tmall, increased by 10% year-on-year in pieces during the third quarter, compared with 21% year-on-year growth in the second quarter. *
USA
In the US, the bridal category led platinum jewellery retail sales recovery in Q3. Coming out of the pandemic, consumers are increasingly leaning towards meaningful products to celebrate relationships and milestones. This is shown in the US jewellery market, where retail channels experienced a rebound, and platinum sales in the 'symbolic meaning' categories outperformed.
PGI also closely collaborated with a number of leading jewellers to launch platinum jewellery collections to capture the opportunity for the upcoming holiday season, taking advantage of the current platinum price.
Japan
In Japan, the jewellery market continued to improve in the third quarter supported by cash handouts and sales growth in e-commerce and independent retailers located in areas less impacted by COVID-19. Platinum jewellery demand recovered to ~90% of the high base in Q3 2019, supported by bridal and high-end jewellery sales. Platinum is perceived as the 'metal of love' and has a dominant position in Japan's bridal jewellery. Some couples have chosen to spend more on bridal platinum jewellery during and post the pandemic with the delay of wedding ceremony and the cancellation of honeymoons.
India
In India, the industry resumed business from July and chain stores, notably those partaking in PGI's conversion programs, showed faster recovery and improved sales, while jewellers reported placing orders for the upcoming key festival and wedding season. High gold prices continue to present an opportunity for the platinum jewellery industry to convert consumers from gold to platinum, especially for entry price point products.
Despite an outlook clouded by potential risks of new waves of infections, consumers show a strong willingness to spend on products that celebrate important occasions and mark special moments at a time when gatherings and travel remain restricted. Platinum is well positioned this holiday season, as it is the rarest among precious metals and represents and reinforces heightened emotional connotations. The advantageous price gap between platinum and gold also encourages retailers to continue to expand product offerings in ever more accessible price points.
Note: *Data from BigOne Lab.
Platinum Jewellery Business Review (PJBR)
The Platinum Jewellery Business Review is an annual report published by PGI based on surveys conducted among PGI's manufacturing and retail partners, together with industry 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.
Platinum Guild International is a worldwide marketing organisation dedicated to creating, expanding and strengthening consumer and trade markets for platinum jewellery. Through various programs both to consumers and in collaboration with jewellery retailers and manufacturers, PGI creates consumer ounce demand by identifying and developing platinum jewellery opportunities with its partners. Jewellery development has a strong track record in delivering results. Since PGI was founded in 1975, platinum jewellery has contributed over 80 million ounces of demand. PGI is headquartered in Hong Kong and has offices in China, India, Japan and the US.
