Branded collections drive incremental growth for platinum jewellery
As platinum cements its position as the metal of meaning among Chinese consumers, Platinum Guild International encourages retailers to develop branded jewellery collections to improve margins and generate new sources of business.
According to a recent McKinsey & Co study, the market for branded jewellery is poised to grow at a compound annual growth rate of 8 to 12 per cent from 2019 to 2025, with branded products commanding prices six times higher than unbranded counterparts. However, only 18 per cent of fine jewellery worldwide is branded. In China, the share of branded jewellery is even lower at 15 per cent.
This is set to change as Platinum Guild International (PGI) helps expand branded propositions in the jewellery space. Building platinum’s equity as a symbol of meaning and authenticity has long been a core strategy of PGI. Branded collections play a pivotal role in cementing platinum’s prestigious standing among affluent jewellery consumers in both the bridal and non-bridal categories. Platinum represents love and meaning, which are highly valued attributes of jewellery brands.
Over the years, PGI has guided and collaborated with jewellers in developing and marketing branded collections. By weaving together consumer insights and platinum’s unique properties, branded jewellery collections are enabling retailers to meet consumer demand for meaningful jewellery, capture new customer segments and generate additional revenue streams.
Platinum is recognised in China as a premium metal for meaningful purchases to commemorate special events. Branded collections support this proposition by imbuing jewellery with perceived intangible values. In line with PGI’s consumer-first approach, designs reflect emotions or messages important to the target segment.
Branded jewellery also yields higher margins and new business opportunities, noted PGI. Instead of the usual per-weight pricing of Chinese jewellery retailers, branded collections command per-piece prices as they create value for consumers through meaning.
With margins fostering innovation when reinvested into growing the business, jewellery retailers in China that have embraced branded collections are leading the sector’s recovery.
PGI China’s collaborations with leading retailers have resulted in appealing branded collections that contributed significantly to their market positioning and growth. Design and innovation are integral to the success of these initiatives.
Since 2018, PGI has been working with Chow Tai Fook (CTF) on the Pt G&W Collection that celebrates female empowerment. Pt G&W has since evolved into a platform to introduce new concepts and techniques through sub-collections. In Q2 2020, CTF launched three Pt G&W lines with PGI China in order to target young consumers.
In end-2019, Caibai launched the unisex MyStyle Collection for creative and free-spirited young consumers. Less than a year after its launch, new designs were added to the collection.
PGI’s flagship brand, Platinum Moment, appeals to Chinese millennials through designs that reflect current fashion trends. Now available in 1,000 stores, it enables mid-sized retailers to tap young consumers, who boosted Platinum Moment’s sell-in volume by 19 per cent year on year in 2020. The non-bridal branded collection also improves gross margins by 8 per cent to 15 per cent compared to generic products.
PGI has led, guided and helped jewellers develop and market branded collections in recent years.
Zbird’s new gem-set collection, Adore, for the bridal and gifting segments was launched during the 520 (May 20) shopping festival with an integrated campaign that included videos, press releases, gifts with purchase promotions and an exclusive product zone on Zbird’s WeChat e-commerce store.
Lukfook relaunched its Pt Graceful Collection in end-June with new designs that combined the fortitude of platinum with the elegance of pearls to project independence and grace. Apart from marketing support, PGI trained Lukfook sales associates to produce social videos for the launch campaign.
New partner, Shining House, launched One Life One Love, its first-ever platinum bridal three-ring collection using its patented 20-degrees tilt ring design by Roman Zelenin. As the design delivers greater comfort, PGI promotions highlighted wedding bands suitable for
Branded collections will continue to play a key role in PGI’s market development strategy to maintain platinum’s forward momentum. PGI is committed to supporting its retail partners in developing and marketing branded platinum jewellery collections and jointly promoting platinum as the metal of love and meaning.