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India’s platinum jewellery demand is likely to rise by 35 per cent in calendar year 2014, says the apex body in the sector, Platinum Guild International (PGI).
The reason given is rapidly changing consumer preferences, especially from the bridal segment, earlier confined to gold and diamonds.
A recent study by PGI forecasts India’s demand in this regard at 40 tonnes in 2014, compared to around 30 tonnes in 2013, itself a 41 per cent growth from the previous year.
“Platinum has captured the market in engagement and love band segments. Other segments in branded platinum jewellery have also recorded a significant jump in the past few years,” said Vijay Jain, chief executive, Orra.
In India, the price gap between gold and platinum has narrowed from 100 per cent more for the latter to 10-25 per cent now, depending on the type of ornaments.“With the price difference narrowing, platinum has become a preferred choice for even auspicious occasions. The metal continues, though, to see a lack of investor interest,” said Jain.
The PGI study, titled ‘Retail trade barometer’, found retailers bullish on 2014.“There is a very strong consumer desire for platinum jewellery in India, despite the overall market being relatively small in a global context. But it has been growing at an exponential rate. The outlook for 2014 and beyond is extremely positive. There are many factors which provide the basis for continued growth – the success of the Platinum Day of Love programme, increased distribution across India, with more retailers stocking platinum, product innovations and exciting designs, and platinum’s powerful emotional connection with consumers,” said Nicholas Graham Smith, chief operating officer of PGI.
| Platinum versus gold performance ($/oz) | |||
| Year | Jan-01 | Dec-31 | Variations ($) |
| Gold | |||
| 2013 | 1,693.75 | 1,204.5 | (-)29 |
| 2014* | 1,225 | 1,298.75 | 6 |
| Platinum | |||
| 2013 | 1,566 | 1,357 | (-)13.35 |
| 2014* | 1,388 | 1,440 | 3.75 |
| Source : Kitco.com, * 2014 data upto May 12 | |||
“We have been very successful at utilising digital media and integrating marketing programmes that have positioned it well among the younger audience, making it emotionally significant for them. Once the knowledge of the value of platinum deepens, the demand will increase. Platinum Day of Love couple bands is the volume driver. Men’s jewellery is a nascent category and it delivered very strong figures – some retailers reported doubling their sales. Also, many have shown interest in stocking heavier items in terms of jewellery and PGI is evaluating the next segment of growth for the market,” said Vaishali Banerjee, its country manager here.
