(IDEX News) - Platinum Guild International (PGI) has published the findings of its 2017 Platinum Jewellery Business Review revealing that wedding markets around the world have become strongholds for platinum jewelry across China, Japan, the U.S. and newly emerging in India.
Compiled by independent platinum market experts and industry analysts, the survey reports strong consumer retail sales growth in the wedding segment for 2017, even outperforming gold in some areas, PGI said.
"We saw growth for platinum jewelry with relation to the wedding market in all four of the key markets in 2017," said PGI CEO Huw Daniel. "This trend is mostly tied to a strong preference for platinum among younger consumers to express love, together with a robust global economy and historically low platinum prices, indicates growth potential in the platinum jewelry sector in 2018."
In China, despite continuing market challenges at the total market level, PGI said it has seen strong growth in platinum acquisition in the core bridal category. According to a consumer study covering 55 cities in Tier 1 to 3, platinum bridal acquisition volume has increased by 22% compared to 2014. Platinum has become the dominant precious metal for wedding rings. China annual brand tracking survey shows that consumers strongly associating love with platinum and far ahead of other metals. Bridal jewelry is a gateway purchase leading to subsequent platinum jewelry purchases for anniversaries, birthdays and milestone occasions, which provide opportunities for growth to be further explored in 2018.
For young India, PGI said it has created a distinct positioning for platinum versus gold, tapping into modern couples' desire for jewelry that better represents the bonds of love in a modern relationship between equals. Through the Platinum Days of Love Campaign, platinum has become the metal of choice among today's young Indian consumers shaping the country's culture and fashion. The market is led by love-gifting with local retailers finding footholds for platinum within the gold-dominated wedding category. The introduction of a new branded segment, Platinum Evara, a modern platinum jewelry collection gifted to the bride and groom before the wedding day has carved out a distinctive niche for platinum and created a new jewelry segment for the industry.
Meanwhile, in Japan where platinum has a strong presence, platinum holds a 92% share of the engagement ring market and 82% share of wedding rings. Platinum is expected to continue dominate in bridal jewelry in the coming years.
Strong results for platinum in bridal are also mirrored in the West. In the United States, the economic recovery and a bullish consumer sentiment has benefited the total jewelry industry, leading to the 5th consecutive year of growth for platinum jewelry consumption at 11%. The growth mainly comes from strong sales in bridal jewelry including engagement rings and wedding bands. In 2018, additional growth is expected to derive from initiatives promoting the use of platinum crowns that hold diamonds more securely, regardless of the choice of metal for the rest of the ring, along with increasing demand from the self-purchase category, which is likely to generate 8-11% of total growth in the U.S.