Platinum continues to see growth in India, demand not restricted to metros: PGI

It's no secret that Indians love their gold. However, more than just the gold, we love precious jewellery. It was this opportunity, which India provided as a precious jewellery market, that attracted Platinum Guild International (PGI) to enter the country almost two decades ago.
 
Since then, with its concerted effort, PGI has managed to create a niche for platinum in India. Till 2019, the platinum jewellery market was growing by 20-25 per cent year-on-year.

"Last year despite the pandemic taking on several businesses, we managed to do tremendously well in Q4 (October-December 2020) with 21 per cent growth. Q3 2021 has shown remarkable growth with retailers reporting sales in July-August to be even higher than October 2020," says Vaishali Banerjee, Managing Director, PGI.  

Globally, platinum is targeted at younger consumers, and that is the case in India as well. Consumer awareness about platinum is very high and it is not restricted to just metros. "We now have a consumer cohort which is way beyond just the metros. It has gone into tier-2 and tier-3 cities," says Banerjee.

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While 60 per cent of all platinum jewellery sales come from tier-1 cities, another 35 per cent comes from tier-2 cities, with the balance coming from tier-3 cities. "Geographical boundaries are less relevant in the age of digitisation," says Banerjee.

Keeping India's young demography in mind, in 2009, PGI introduced the first branded segment -- Platinum Days of Love, which is a collection of wedding bands. In 2015, it introduced its second branded segment -- Platinum Evara -- for women bridal/trousseau sub-category, and in 2019, it launched its collection -- Men of Platinum -- aimed at men.

Between 33 per cent and 35 per cent of all platinum jewellery sales in India come from the 'Men of Platinum' collection. "Platinum targets the young men and offers everyday jewellery. The heft of the metal and the styling speaks to the younger men," says Banerjee.

Men in both metros as well as tier-1 and tier-2 cities have an affinity to platinum jewellery. A recent survey conducted in association with NielsenIQ India showed that 62 per cent men feel platinum is rare, 66 per cent perceive it to be an extraordinary/unique metal, 64 per cent believe it's the choice of today's young generation. 56 per cent believe that platinum is a marker of significant moments, milestones and success.

The collection includes rings, wristwear, chains, single ear studs and dog tags, and is inspired by global trends. However, it is designed specifically for India.

The demand for platinum is constantly growing in India, registering between 20-24 per cent growth every year. At the close of 2019, there was around 7-7.5 tonnes of platinum in jewellery fabrication at an all-India level.

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