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Platinum jewellery market in India grew by 28 per cent in 2014 due to subdued price trend and swift change in consumer preferences especially in bridal category.
A Retail Barometer study conducted by Platinum Guild International (PGI) by the independent research firm StratWon Business Consulting showed, growth in platinum sales at 28 per cent in 2014. Despite a slow start in 2014, given the general elections in India, growth in platinum sales was seen across different types of outlets. Sales by PGI's strategic retail partners were up by 33 per cent during 2014 while other outlets reported a growth of 19 per cent.
"Given the overall market scenario, platinum growth for 2014 has been very positive and consistent which comes from continuous improvement of consumer sentiment, higher conversion at the retail stores and improving the disposition for platinum amongst our key target audience. With the launch of Platinum Evara on the back of strong consumer research at the end of the year we are looking at further accelerating growth. The initial response to this new category has been very positive," said Vaishali Banerjee, Country Manager India, PGI.
While absolute data from both sectors i.e. jewellery and auto catalyst is not known, figures compiled by the Director General Commercial Intelligence and Statistics (DGCIS) showed India's total platinum import at 5.7 tonnes during 2014 as against 4 tonne in 2013. India's overall platinum import, however, is estimated much higher.
"The outlook for 2015 is strong given that platinum resonates with young India. Platinum Love Bands are getting embedded in the Indian culture and now with the successful launch and roll out of Evara, platinum offers an opportunity for retailers to bring in new consumers to grow their business while delivering a superior consumer experience," she said.
The Industry overview for 2014 has seen a change in the buying trend for precious metal jewellery, leaning more towards everyday wear and gifting, leading to an acceptance of platinum in this segment. Also, the primary focus for retailer's remained bridal jewellery because of the higher price per piece resulting into contribution of platinum jewellery sales to retail stores recorded at an average 5 per cent for the industry and 10 per cent for key retailers.
"Platinum's appeal has been changing overtime and it's no more just an urban phenomenon with increasing desire for the metal across Tier 1 and Tier 2 cities. Fuelling this growth for platinum has been the category of Love Bands that has shown sustained year on year growth. We will continue to drive demand amongst the younger audience in 2015 with an eclectic stock mix of jewellery and are looking at a 25 per cent growth in 2015," said Vijay Jain, CEO, ORRA, a jewellery brand sales platinum as well.
