Platinum is Youth's Choice to Celebrate Special Occasions, Says PGI Boss

Over two decades ago, a large majority of Indians might not have heard about ‘platinum’ jewellery. After liberalisation and deepening with the wider international community, platinum is one of the top precious metals that youngsters consider for celebrating special occasions. The fact that platinum has captured a 15 per cent share of precious metal jewellery acquisitions among the affluent youth is not a small feat in gold-crazy India. Vaishali Banerjee, managing director for India at Platinum Guild International, shares with Deccan Chronicle trends, people changing tastes, market dynamics and road ahead for platinum.

Edited excerpts

Q. What trends have you noticed in platinum consumption this year?

What truly sets the platinum trends apart are the design possibilities that deeply resonate with the youth’s longing for personalization and meaning. Bold Minimalism, drawing inspiration from global influences, employs simplicity to make bold statements. Geography-inspired pieces and gemstone-infused designs introduce assertive elements for individuality.

Q. How has it performed in the men's jewellery section?

Men’s jewellery isn’t just a trend, it’s here to stay. Our strategic foray into crafting platinum brands that explore novel opportunities has yielded exceptional results. As per our consumer insights, 90 per cent of men in the 31-40 age group consider precious jewellery crucial for significant occasions, highlighting the increasing importance of precious jewellery in their lives. Platinum enjoys strong consideration at 83 per cent among this demographic, accompanied by a notable preference score of 23 per cent.

Q. Considering the price point, platinum is for the niche segment, is it safe to assume that the consumption of the metal is limited to metros?

Contrary to the assumption that platinum is confined to the niche segment in metros, the reality is far more expansive and exciting. PGI's strategic launch of platinum in India disrupted the conventional precious metal jewellery market. Initially targeting the young and affluent urban demographic, platinum has emerged as a distinctive choice nationwide.

Far from being limited to metros, platinum consumption has witnessed phenomenal growth beyond major cities. While tier I cities lead in distribution with 60 per cent, tier II and III contribute significantly, accounting for 35 per cent and approximately five per cent, respectively. We are working closely with our retail partners and leveraging an extensive retail network to reach tier 2 and 3 towns.

Q. Even though platinum is a premium metal, the promotion isn't much like it happened with diamonds. How is it being marketed right now?

Our marketing endeavours focus on building a deep emotional connection while creating an appreciation for platinum's unique qualities. The metal's rarity is a powerful differentiator, coupled with its qualities of strength, durability, resilience, and purity. The contemporary designs add to its attraction, creating an aura of premium, aspirational value.

The 2023 Category Health Study by NielsenIQ reveals that consumers primarily purchase platinum for special occasions, gifting, and its premium quality. The demand for sleek, contemporary pieces that complement various outfits provides an ideal opportunity for platinum, especially during the festive season. Platinum's growth, witnessing a remarkable 10x increase in the last decade, is driven by emotional reasons, and this trend is set to continue.

Q. Considering the designs are very contemporary, is platinum only targeted at young consumers?

Platinum is focussed on the younger generation, particularly consumers aged 25 to 35 years. The target audience is characterised by digital natives making independent and purposeful purchase decisions in the age of rapid digitalization.

The ‘platinum consumer’ shares common traits of being young, educated, globally connected, and digitally savvy. The core target audience, young women aged 18-35 and men from 25-40 in the affluent NCCS A segment, is pivotal. However, platinum's reach has transcended these age and location brackets.

Q. Gold sales increase around Dhanteras as it is considered auspicious to buy the yellow metal. Is there a season for platinum buying as well? What patterns have you noticed?

Platinum has carved its unique space in the festive landscape. As the domestic consumer sentiment takes an optimistic turn, particularly in anticipation of the grand festive season in Q4, platinum experiences a surge in demand. Platinum's uniqueness lies not in following a seasonal trend but in becoming a trendsetter itself.

Q. What are the most sold pieces (items) in platinum? Is it the finger ring/bracelet or earrings?

Rings emerge as the undisputed champions, holding a special place in the hearts of consumers, especially during core occasions like engagements and anniversaries. Platinum with its rarity and absolute preciousness seen as the metal of love has become the embodiment of meaningful and significant moments in one's journey.

However, the narrative doesn't end there. Platinum Evara introduced a self-purchase range, reshaping preferences in young women's jewellery choices. Bracelets and earrings step into the limelight, witnessing a surge in popularity. The modern woman's desire for versatile and elegant pieces finds a perfect match in platinum, and the shift in preference echoes the evolving tastes of consumers.

Q. What is India's market share in platinum sales?

In the global platinum jewellery market, India stands out as a significant player and is the fastest-growing market globally. Urbanisation, increased disposable income, and a palpable positive consumer sentiment have collectively fuelled the growth of platinum jewellery. However, what truly distinguishes this surge is a strategic focus on a younger demographic – individuals seeking jewellery that goes beyond the conventional and embraces emotional expression.

Platinum has firmly established itself in India's top 20 markets, claiming a substantial 15 per cent share of precious metal jewellery acquisitions among the affluent youth.

Q. People buy gold as an investment. How does it work with platinum?

The precious metal jewellery landscape has transformed significantly over the past two decades. Unlike the past, where jewellery was primarily stored as an asset, today it plays a more integral role in daily wardrobe choices. The younger generation, in particular, seeks pieces with unique design narratives that express their individuality rather than focusing solely on investment.