Branded collections drive growth of platinum jewellery sector
As jewellery industry trends continue to evolve, branded jewellery is expected to be a major growth engine in the coming years.
Effective branding builds strong consumer relevance and connectivity, which younger consumers appreciate, according to the latest insights from the 2023 Platinum Jewellery Business Review, organised in London by Platinum Guild International (PGI), the global marketing organisation dedicated to creating and strengthening the market for platinum jewellery.
"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," said Huw Daniel, CEO of PGI.
China: Fashion-forward platinum brand speaks to young Chinese women, delivering results amidst uncertainties
China ranks first among all jewellery markets in the world, but growth has shifted from Tier 1 and 2 cities to lower-tier cities.
During this transition, China is moving towards large jewellery retail chains that are quick to use more branded jewellery. 2022 was an extremely challenging year for the Chinese economy and consumers, with approximately two fiscal quarters of stifled business activity. Consumer confidence continued to weaken on the back of multiple sporadic COVID outbreaks. Traffic to both manufacturing showrooms and retail stores was significantly affected.
Platinum jewellery fabrication slumped by 32 per cent 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.
Uncertainty remains in 2023 despite some recent recovery, but in the long term, the introduction of premium platinum products will create appeal to both consumers and the jewellery trade.
Branded collections such as Pt Moment® have been contributing to the post-COVID recovery in China and will continue in the future. Aiming at young women who want to embrace tenacity and elegance with their own take on contemporary femininity, this branded collection offers affordable non-bridal precious jewellery options that fit their needs.
Powered by design innovations and new technologies, the branded collection featured more than 150 SKUs in 2022, and increased distribution from around 50 doors in 2018 to 1,800 in 2022. The sales volume of Pt Moment® grew at a CAGR of 11 per cent during 2020-2022, despite the COVID outbreaks and pandemic-control measures.
Branded collections also prove successful in other key platinum markets namely the US, India and Japan.
In the US, the branded collection Platinum Born presents fashion-forward options in a market previously dominated by platinum bridal jewellery.
Over in India, the fastest-growing platinum market, the Men of Platinum branded collection trains its sights on the country's 12.2 million young, affluent, urban men.
Meanwhile, Platinum Woman offers affordable and youthful collections for the next generation of platinum jewellery buyers in Japan.
Daniel said, "While our approach differs from country to country in order to meet the needs of local consumers, it is clear that branded collections are a major growth engine for the future of the platinum jewellery industry."