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.
Focusing on India the PGI said, India has a mature jewellery market and a deeply entrenched jewellery culture, with a large base of young and financially independent consumers. As chain retailers and the organised trade are set to lead the jewellery industry’s growth, platinum creates significant value by addressing the needs of the young consumer and driving bottom line growth for the partners.
Designed to drive conversion and margins, platinum was the top-performing jewellery category in 2022, delivering 20% year-on-year growth in fabrication to a total of 198K ounces. At the retail level, PGI partners reported an increase of 26% in 2022 compared to the previous year. PGI expects the strong growth in platinum jewellery to continue in 2023, helped by platinum’s unique margin opportunity and strengthening consumer demand.
India’s 12.2 million young, affluent, urban men are a ready market for branded jewellery which currently represents a white space. Men of Platinum in India was created by PGI to meet the aspirations of these men, recognising their evolving values and aspirations, which no jewellery currently captures.
In 2022, Men of Platinum leveraged India’s love for cricket through its brand ambassador KL Rahul, a cricketer who embodies the values of the brand. Together with partners’ co-promotions, retail sales have increased fivefold since its inception, and distribution has doubled to almost a thousand doors.
After reaching a record level of sales in 2021, the US platinum jewellery industry saw another year of noteworthy performance. Retail sales increased a further 9% year-on-year, despite facing multiple challenges in 2022, including inflation, global supply chain issues, the war in Ukraine, and resulting sanctions. The outlook remains positive for 2023 as consumer spending remains robust and high gold prices make platinum a favourite for the price-sensitive trade.
“While our approach differs from country to country in order to meet the needs of local consumers, it’s clear that branded collections are a major growth engine for the future of the platinum jewellery industry,” Mr. Daniel said.
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