Platinum jewelry Becoming popular in India
By www.jewellerynetasia.com
Platinum in India is fast becoming the metal of choice for the consumer who wants the very best. Platinum was launched in India in 2000 but two years ago is when it started picking up pace significantly as there was a very aggressive marketing programme launched by Platinum Guild of India (PGI) in 2009, which has continued into this year. The growth percentage for platinum jewellery has been much higher than last year. Newer markets have seen 100% growth while existing markets – 40 to 60% in consumer off-take. At an overall level, in 2009 there was 100% growth, 2010 witnessed 80% and 2011 around 70% with the market stabilizing.
Additionally, the base of consumers is expanding with the increase in the economic growth. This has consequently impacted the platinum jewellery industry positively.
Currently with gold prices surging the difference in the rate per gram is not that much and hence many are opting for platinum jewellery. The reducing price difference between the two metals has resulted in consumers wanting to upgrade to platinum.
Ms. Vaishali Banerjee, Manager of PGI says, “The price difference has helped consumers to own a piece of platinum jewellery in their basket. In fact jewellery consumers are now more attracted towards platinum with its premium over gold narrowing due to the relentless price increase. This shows in the overall increase in platinum sales at the retail level and is also evident through the increase in the number of retailers across the country. Many remote jewelers in India have shown interest to expand their business in platinum jewellery as well. So the availability will be more wide spread across India soon.”
So with the price gap between these two metals becoming narrow day-by-day, is platinum going to displace gold in future? Ms. Banerjee says, “Platinum is not here to displace gold or other metals in the market as the world over platinum jewellery and other precious jewellery co-exist. Besides platinum is an extremely rare metal and therefore it will never be able to be on par with gold. Found in very few places around the world, platinum is 30 times rarer than gold due to which it can never displace gold or other precious metals. Besides platinum mined itself is not that much as it’s a very precious and rare metal and therefore is considered premium and an excellent store of value. India’s consumption of gold is higher than the annual metal production for platinum.”
At the launch stage, platinum jewellery was aimed at the modern Indian woman. She was seen to be more educated and aware of western trends, seeking options in jewellery metals and designs and willing to try out newer looks and experiment with designs. She wanted exclusivity in her jewellery. A perfect fit with rare platinum and a segment whose potential is still being seen today.
Speaking about the PGI’s promotional campaign in India, Ms. Banerjee says, “We have a very strong proposal for 2011-12 to stimulate consumer demand and to further build newer markets. To address different consumer segments, marketing and product needs. And we will have a very strong trade programme with key retailers and chain stores across the country to further develop the market.”
“Platinum provides an opportunity to offer something new to existing customers and helps bring in new customers who are keen to buy platinum jewellery. While retailers continue to sell platinum jewellery to their existing customers, a large part of the business comes from new customers. We have engaged jewellers who are far better placed to know the customers’ choice in platinum. We get a lot of input from retailers to develop new designs for specialised customers. There has been a momentum in the market for platinum. We are extremely positive about the potential that India presents for platinum in the jewellery industry,” She says.
The Indian woman loves jewellery. The urban woman today is more educated and aware of current trends. Jewellery is an important component of her attire. She wants to be distinctive and remembered for her style. She seeks options in jewellery metals and jewelry designs. Willing to try out newer looks and experiment with designs, she wants exclusivity in her jewellery. Today, there exist more options in jewellery and she is looking at choices. Platinum jewellery is one such desirable choice to her when she is looking for the very best.
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