Branded jewellery collections driving platinum growth
The jewellery industry is changing, and branded jewellery is predicted to be a significant driver of growth in the future. Creating a strong brand that resonates with consumers, especially younger ones, is crucial. These insights come from the 2023 Platinum Jewellery Business Review, which was held in London by Platinum Guild International (PGI), a global marketing organisation focused on promoting and strengthening the market for platinum jewellery.
Huw Daniel, CEO of PGI, said of the trend: “The value of branding is well understood and developed in other luxury categories such as fashion, but lags behind in jewellery. PGI leverages consumer research and insight to develop a brand application framework to unlock these opportunities. We have been working with our partners to ensure branded platinum collections with strong storytelling, designs, and new technologies meet the aspirations of our consumers.”
Huw Daniel, CEO of Platinum Guild International at Platinum Jewellery Business Review 2023
While branding is driving growth in a variety of different geographical markets, the brand characteristics that resonate vary by region. Different markets express different preferences, and branded collections that respond to those preferences are poised to be successful.
For example, Japan is an ageing society, but with a substantial demographic of young consumers primed to embrace platinum. Women between the ages of 20 and 34 are earning more and have an appetite for buying themselves gifts. They want jewellery that speaks to and about who they are, but are often overlooked by the jewellery industry, outside of bridal.
In Japan, platinum’s elevated status is a strong foundation for branded jewellery. It’s all about delicate and affordable pieces that reflect modern values with which young Japanese women can connect. The affordable price point of the ‘Platinum Woman’ branded collection sets the scene for strong future demand.
Platinum is the go-to jewellery metal for good quality jewellery in Japan, accounting for a quarter of all jewellery unit sales in 2022. With many pieces of high-end jewellery only available in platinum, the average price per unit is significantly higher than the market average.
In 2022, the Japanese jewellery market recorded its highest sales in 14 years, and platinum performed well, with platinum jewellery retail ounce sales growing by 6.2% year-on-year.
Platinum Woman, Japan
China ranks first among all jewellery markets in the world, but consumer habits are changing. Growth has shifted from Tier 1 and 2 cities to lower tier cities. China is moving towards large jewellery retail chains that are quick to use more branded jewellery.
2022 was a tough year for the Chinese economy and for Chinese consumers. Consumer confidence declined steadily on the back of multiple COVID outbreaks.
Platinum jewellery fabrication dropped by 32% year-on-year to less than half a million ounces in 2022. With store traffic being severely affected, retailers were reluctant to replenish products and instead sought to keep stock levels to a minimum.
But positivity remains thanks to the power of branded collections. Collections such as ‘Pt Moment’ have been contributing to the post-COVID recovery. This collection is aimed at young women who want to embrace tenacity and elegance with their own take on contemporary femininity.
Sales of Pt Moment® grew at a compound annual growth rate (CAGR) of 11% during 2020-2022, despite multiple challenges.
Pt Moment®, China
In India, younger men are the drivers of growth for platinum jewellery. The nation has a mature jewellery market and a strong jewellery culture, with a large base of young and financially independent consumers.
India’s 12.2 million young, affluent, urban men are a primed market for branded jewellery. The ‘Men of Platinum’ brand in India was created by PGI to meet their aspirations.
In 2022, Men of Platinum tapped into India’s love for cricket through its brand ambassador KL Rahul, a cricketer who embodies the values of the brand. Together with co-promotions, retail sales increased fivefold since inception, and distribution has doubled.
Platinum was India’s top-performing jewellery category in 2022, delivering 20% year-on-year growth in fabrication. PGI’s retail partners reported an increase of 26% in 2022 compared to the previous year.
Men of Platinum, India
The United States has historically treated platinum as a metal for the bridal market, with only a limited range of platinum jewellery available for non-bridal. Platinum Born, the metal-only platinum brand, is a fashion-forward jewellery collection that helps empower a sense of modern femininity for younger women seeking unique designs to express their individuality.
Platinum Born has expanded platinum into distribution channels like Neiman Marcus and Saks Fifth Avenue, which have typically only had limited platinum offerings. In 2022, Platinum Born’s unit sales doubled, and dollar sales increased 60% over 2021.
After seeing record sales in 2021, the US platinum jewellery industry enjoyed another year of noteworthy performance. Retail sales increased a further 9% year-on-year, despite facing multiple challenges in 2022, including inflation, global supply chain issues, the war in Ukraine, and resulting sanctions. The outlook remains positive for 2023 as consumer spending remains robust and high gold prices make platinum a favourite for the price-sensitive trade.
Platinum Born, USA
Huw Daniel, CEO of PGI, said of the trend: “The value of branding is well understood and developed in other luxury categories such as fashion, but lags behind in jewellery. PGI leverages consumer research and insight to develop a brand application framework to unlock these opportunities. We have been working with our partners to ensure branded platinum collections with strong storytelling, designs, and new technologies meet the aspirations of our consumers.”
“While our approach differs from country to country in order to meet the needs of local consumers, it’s clear that branded collections are a major growth engine for the future of the platinum jewellery industry,” Mr. Daniel said.
While branding is driving growth in a variety of different geographical markets, the brand characteristics that resonate vary by region. Different markets express different preferences, and branded collections that respond to those preferences are poised to be successful.
For example, Japan is an ageing society, but with a substantial demographic of young consumers primed to embrace platinum. Women between the ages of 20 and 34 are earning more and have an appetite for buying themselves gifts. They want jewellery that speaks to and about who they are, but are often overlooked by the jewellery industry, outside of bridal.
In Japan, platinum’s elevated status is a strong foundation for branded jewellery. It’s all about delicate and affordable pieces that reflect modern values with which young Japanese women can connect. The affordable price point of the ‘Platinum Woman’ branded collection sets the scene for strong future demand.
Platinum is the go-to jewellery metal for good quality jewellery in Japan, accounting for a quarter of all jewellery unit sales in 2022. With many pieces of high-end jewellery only available in platinum, the average price per unit is significantly higher than the market average.
In 2022, the Japanese jewellery market recorded its highest sales in 14 years, and platinum performed well, with platinum jewellery retail ounce sales growing by 6.2% year-on-year.
China ranks first among all jewellery markets in the world, but consumer habits are changing. Growth has shifted from Tier 1 and 2 cities to lower tier cities. China is moving towards large jewellery retail chains that are quick to use more branded jewellery.
2022 was a tough year for the Chinese economy and for Chinese consumers. Consumer confidence declined steadily on the back of multiple COVID outbreaks.
Platinum jewellery fabrication dropped by 32% year-on-year to less than half a million ounces in 2022. With store traffic being severely affected, retailers were reluctant to replenish products and instead sought to keep stock levels to a minimum.
But positivity remains thanks to the power of branded collections. Collections such as ‘Pt Moment’ have been contributing to the post-COVID recovery. This collection is aimed at young women who want to embrace tenacity and elegance with their own take on contemporary femininity.
Sales of Pt Moment® grew at a compound annual growth rate (CAGR) of 11% during 2020-2022, despite multiple challenges.
In India, younger men are the drivers of growth for platinum jewellery. The nation has a mature jewellery market and a strong jewellery culture, with a large base of young and financially independent consumers.
India’s 12.2 million young, affluent, urban men are a primed market for branded jewellery. The ‘Men of Platinum’ brand in India was created by PGI to meet their aspirations.
In 2022, Men of Platinum tapped into India’s love for cricket through its brand ambassador KL Rahul, a cricketer who embodies the values of the brand. Together with co-promotions, retail sales increased fivefold since inception, and distribution has doubled.
Platinum was India’s top-performing jewellery category in 2022, delivering 20% year-on-year growth in fabrication. PGI’s retail partners reported an increase of 26% in 2022 compared to the previous year.
The United States has historically treated platinum as a metal for the bridal market, with only a limited range of platinum jewellery available for non-bridal. Platinum Born, the metal-only platinum brand, is a fashion-forward jewellery collection that helps empower a sense of modern femininity for younger women seeking unique designs to express their individuality.
Platinum Born has expanded platinum into distribution channels like Neiman Marcus and Saks Fifth Avenue, which have typically only had limited platinum offerings. In 2022, Platinum Born’s unit sales doubled, and dollar sales increased 60% over 2021.
After seeing record sales in 2021, the US platinum jewellery industry enjoyed another year of noteworthy performance. Retail sales increased a further 9% year-on-year, despite facing multiple challenges in 2022, including inflation, global supply chain issues, the war in Ukraine, and resulting sanctions. The outlook remains positive for 2023 as consumer spending remains robust and high gold prices make platinum a favourite for the price-sensitive trade.
