In January 2015, Platinum Guild International (PGI) officially announced the transfer of its headquarters from London to Hong Kong and the new office would assume full operation by summer. The new headquarter is located in close proximity to significant markets including China, Japan and India. This action indicates the increasingly prominent role of Asia to the global platinum market. Having served as president of PGI USA for 12 years, Hwu Daniel was appointed new CEO of PGI Global and assumed office on 1 April 2015. Amidst his busy schedules, Hwu Daniel shared with Hong Kong Jewellery his plans ahead.
HKJM: Hong Kong Jewellery
HD: Hwu Daniel
HKJM: Congratulations to your appointment! Regarding the relocation of the headquarters of PGI from London to Hong Kong, what are the major considerations and purpose?
HD: PGI recognises the importance of platinum jewellery demand from our key Asian markets, China and Japan as well as the rising India. These three countries together now account for 85 percent of global platinum demand. With the transition in leadership it was considered a prime time for our headquarters’ physical relocation as well. The location of Hong Kong allows us to better lead and support the local market teams, and to liaise with key manufacturing and retail partners of PGI more closely. As both the consumer and trade markets are becoming increasingly dynamic, it will also help to stay closer to a region where our experience and learning will shape our business in an important way.
HKJM: As the new CEO of PGI Global, what are your top priorities and main tasks in the new role?
HD: Our immediate priorities include opening the Hong Kong office with the right people in place by this summer, and ensuring a smooth transition from London. At the same time, I am focusing on becoming more familiar with each market, their challenges and opportunities.
We are also looking to continue to further deepen our collaborative partnerships with the trade and to prioritise those who can truly partner with PGI to bring these opportunities to fruition. To succeed in the platinum jewellery market today, a company needs to make a considered and purposeful choice, and we are keen to enter into deeper collaboration with such companies. These companies understand that platinum can help them achieve their strategic objectives, and that partnering with PGI can help them succeed faster. This is a win-win for all – the platinum jewellery industry, PGI, and the end consumer who gets to wear and cherish beautiful platinum jewellery as a unique store of their lives’ experiences.
On a personal level, my main task at this stage is to observe, ask and listen. There is so much to learn, and so many talented people to learn from. So I am practising being the most absorbent sponge as I can!
HKJM: What role will the Asian market play in PGI’s global strategic plan in the next five years?
HD: Asia represents 85 percent of global platinum jewellery demand so it is central to PGI’s success and the prosperity of the platinum mining industry. Interestingly, from a platinum point of view, we have three markets that are in different stages of development, each with their own unique challenges and opportunities:
Japan is the most mature market and 2015 marks PGI Japan’s 40th anniversary celebration. There platinum has high penetration across all key jewellery buying occasions and discerning customers appreciate the allure of platinum. Despite its long history, the Japan’s market still provides opportunities.
China is a complex combination of newly established platinum jewellery markets in first-and second-tier cities and developing markets in third-and fourth-tier cities, all of which are in a constant state of flux. We believe that the jewellery opportunity in China is evolving and the potential rewards are massive.
India is a classic developing market scenario, growing at some 30 percent per annum from a low base. Nonetheless, it has huge potential and a highly developed jewellery culture. A new platinum bridal segment was launched in India as a new attempt in the market. It also represents platinum’s first entry into the dominant wedding category.
HKJM: How would you describe the current global platinum jewellery market? What are your outlook of markets other than Asia?
HD: The global market for platinum jewellery is extremely dynamic. From a marketing point of view, we have to be adept at managing a global brand that requires local solutions. This suggests that a centrally driven one-solution-for-all approach is not a formula for success. That said, it offers a real opportunity for us to harness our local learning for the benefit of PGI and the global platinum jewellery industry as a whole. I learnt from working with Procter & Gamble the power of applying learning from one market to another, so long as this is done in a way that respects local needs.
Outside Asia, the American market has been posting strong growth as the economy is gaining momentum and consumers begin to spend again. The jewellery industry seeks differentiated, quality products to boost sales and margins.
HKJM: What do you hope to achieve in Greater China in 2015? And how would PGI plan on accomplishing those?
HD: The China business is big and diverse and can only be understood by looking at segment by segment. Looking at the fastest growing bridal segment, we plan to continue to support this strategic business with an increased focus on embedding the platinum pair-ring tradition in third-tier cities, while consolidating our dominant presence as the precious “love metal” of choice in first and second-tier cities.
The next fastest growing segment is gemstone jewellery, where platinum benefits from its natural affiliation with diamond – the best for the best. In all global markets, platinum’s reputation as the most secure setting for a diamond and all fine gems gives it a unique advantage over other precious metals that we will continue to reinforce.
Lastly, the largest segment of all is plain non-bridal jewellery. We will be looking closely at this segment in 2015 to identify new opportunities for platinum to engage with consumers and create new business opportunities for the platinum jewellery industry.
We will continue to invest in sophisticated direct-to-consumer programmes, while also looking to partner with the industry to optimise the platinum opportunity. Simultaneously, we will explore how PGI’s value proposition can be evolved to best meet the needs of China’s growing jewellery industry.
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