According to the latest insights from the 2024 Platinum Jewellery Business Review by Platinum Guild International (PGI), the global marketing organization dedicated to strengthening the market for platinum jewellery, creating demand for platinum jewellery involves deliberate actions along various stages of the product journey.
“Driving sales and value for platinum jewellery for our strategic partners is crucial to creating demand in ounces. We achieve this by implementing innovative ideas, introducing technology and design, and influencing consumer behaviour. This year, we are also expanding into new categories and markets,” said Tim Schlick, CEO of PGI.
The 2024 PJBR highlighted how PGI creates demand through strategic actions in key markets, which are integrated across all regions.
Japan: Creating Occasions and Quality Production
Japan boasts the highest per-capita demand for platinum jewellery worldwide, driven by nearly 100% awareness of the metal. PGI has established platinum engagement rings (ER) and wedding bands (WB) as essential to marriage ceremonies since 1975. Today, over 90% of ERs and 80% of WBs in Japan are platinum. PGI also introduced "Thanks Days Platinum" in 2007, targeting men reaching retirement age to buy platinum jewellery for their wives, and "Platinum Woman" in 2020, aimed at young, affluent working women. Platinum jewellery in Japan is rarely recycled, often becoming heirloom pieces, and has one of the highest paid-to-earned ounce ratios globally.
China: Driving Innovation and Technology
China faces challenges such as a slowing economy, an aging population, and high youth unemployment, which impact the platinum industry. PGI has promoted technological advancements, such as new alloys, 3D printing, and industrial applications, to bridge the innovation gap with gold. PGI's efforts have resulted in innovations like diamond cuts and dark electroplating, creating 265 new SKUs across 28 branded collections. Collaborations with schools, laboratories, and fabricators further support the platinum agenda in China.
US: Expanding Through Design Investment
In the US, design is the primary market driver, historically favoring white gold due to its availability in more designs. PGI has engaged designers to create well-designed platinum jewellery beyond the bridal market. The Platinum Spotlight Program at the COUTURE Jewellery Show in Las Vegas inspired designers to create signature pieces in platinum, leading to an increase in non-bridal platinum jewellery market share from 32% in 2019 to 44% in 2023. "Platinum Born" was also developed to cater to the women’s self-purchase segment with fashion-forward platinum collections.
India: Winning Retailer Support
In India, where gold dominates 80% of the jewellery retail trade, platinum is the metal of choice for younger consumers. PGI has turned retail store layouts into opportunities by increasing platinum's visibility in gold sections and focusing on its benefits. Innovations like platinum designs with rose gold accents have helped, resulting in the gold section program accounting for 30% of all platinum jewellery ounces in India. PGI’s training program has reached almost 80,000 sales associates, with an enhanced replenishment model ensuring products are restocked within 72 hours.
Since 1975, PGI's efforts have generated approximately 90 million incremental ounces of platinum jewellery. “By identifying and addressing specific opportunities in our key markets, PGI has created demand for platinum jewellery where it never existed before and built a solid foundation for the future,” said Schlick.
