The platinum jewellery market saw improved sales and production in the third quarter of 2020, primarily driven by strong momentum in China and the US, data from the latest Platinum Jewellery Business Review (PJBR) revealed.

The Q3 PJBR, published by Platinum Guild International (PGI), likewise showed that product innovation and emotional connection with platinum jewellery alongside lower prices helped capture sales during the period.

“Our strategic partners across markets continue to report an improvement in sales driven primarily by exciting new platinum products that reposition platinum for today’s younger consumers,” said Huw Daniel, CEO of PGI. “With encouraging results from China and the US, we remain optimistic about the upcoming festive and holiday seasons.”

He added that buyers now gravitate towards consumer-centric designs and marketing strategies that build stronger emotional resonance. 

China has sustained its growth momentum in the third quarter, with continued recovery in the retail business. Platinum jewellery fabrication jumped 13 per cent year on year as retailers continue to replenish orders. Retail sales of platinum jewellery from PGI’s partners meanwhile rose 5 per cent year on year due to resumed shopping activities and a rebound in bridal jewellery demand.

With physical stores gradually reopening, online jewellery sales slowed down. Jewellery sales on Chinese shopping platform, Tmall, increased by 10 per cent in Q3 from 21 per cent in Q2.

The bridal category meanwhile led platinum jewellery sales in the US. Coming out of the pandemic, consumers are increasingly leaning towards meaningful products to celebrate relationships and milestones, according to PGI. As such, retail channels experienced a rebound.

The jewellery market in Japan also 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. Bridal and high-end jewellery sales performed well with platinum being perceived as the "metal of love." 

In India, the industry resumed business from July. Chain stores, notably those partaking in PGI’s conversion programmes, 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 with consumers transitioning 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," PGI said. "The advantageous price gap between platinum and gold also encourages retailers to continue to expand product offerings in ever more accessible price points."