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News

  1. Q1 Gold Jewellery Demand Soft, Says WGC
  2. Jewellery Buying Groups Formed New Global Alliance
  3. Singapore to Host Jewellery & Gem World 2022
  4. ‘Wonder Woman’ Gal Gadot Premiered in Tiffany’s 2022 High Jewellery Collection
  5. Christie’s to Auction ‘The Light of Africa’ for $18M in June
  6. New Board of Directors were elected to Jewellery Exporters Association of Turkey
  7. Oroarezzo back with Première Competition
  8. ‘De Beers Blue’ auctions US$57.5M at Sotheby’s
  9. CTF launches Mother’s Day collection
  10. Jewelers of America Announces The 2022 CASE Award Winners
  11. De Beers: Diamond Businesses Staying Cautious About Business Expectations
  12. Synthetic Alexandrite Pioneer David Patterson Dies at 89
  13. 205 CARAT FANCY INTENSE YELLOW DIAMOND GENEVA MAGNIFICENT JEWELS | 11 MAY 2022
  14. Rebecca Foerster Appointed As President of Hearts On Fire
  15. US Steps Up Sanctions Against Alrosa
  16. PGI Study Findings: Consumers Have Different Interpretations of Sustainability
  17. Irving Wong Appointed as Pandora’s General Manager For China
  18. Rolex’s 6 New Watches Unveiled at Watches & Wonders Geneva
  19. Sixième Sens par Cartier High Jewellery: Heteractis Ring
  20. Will Russian Diamond Ban Help Foster Lab-Grown Diamond Business?
  21. Press Release: Ariana DeBose, Hunter Schafer and Zoey Deutch Shine in De Beers Jewellers at the Vani
  22. Press Release: Ariana DeBose, Hunter Schafer and Zoey Deutch Shine in De Beers Jewellers at the Vani
  23. JEWELLERY GENEVA Takes Place between 30 March and 3 April 2022
  24. Christie’s Presents 228 carat White Dimond
  25. Gold Bar Integrity Programme to be Implemented
  26. Press Release: BONHAMS ANNOUNCES ACQUISITION OF BRUUN RASMUSSEN AUCTIONEERS – DENMARK’S LEADING AUCT
  27. Early Spring Fashion for Natural Diamonds
  28. Jennifer Garner Shines in De Beers Jewellers at the Premiere in New York
  29. To celebrate its 15th anniversary, “Cartier Women’s Initiative Impact Report”
  30. American Gem Trade Association Announces Partnership with JCK Show Again
  31. Chow Tai Fook and Canada's Mountain Province Diamonds Sign Supply Agreement
  32. Registration Is Open for 2022 JCK Show
  33. Alrosa Caught Up in U.S. Sanctions
  34. Tawhid Abdullah Receives Lifetime Achievement Award
  35. The Largest Blue Diamond Appears at Sotheby’s Auction
  36. Price Rise for Nearly 90% Of Fancy Colour Last Year
  37. Dickson Yewn’s Collectibles Given for Sotheby’s Charity Auction
  38. De Beers Boosts Production
  39. Watches & Wonders Geneva To Be Held In Hybrid Format
  40. Jewellery, Gem & Technology Dubai to Debut February
  41. Hong Kong Losing its Dominance as the World's Largest Watch Market
  42. Gift Guide for CNY
  43. Press Release: Sotheby’s Announces New Appointments To Luxury Team In ASsia
  44. Georg Jensen Becomes a Certified Member of RJC
  45. 555.55-carat Black Dimond Unveiled at Sotheby’s Auction
  46. GIA Appoints Anna Martin as SVP for Institute, Industry Relations
  47. Alrosa Boosts Direct Sales of Fancy Diamonds to Investors
  48. CIBJO General Assembly postponed to March 17 and 18, 2022
  49. 7,525 Carat Emerald Discovered
  50. Karl Lagerfeld Jewellery Collections to Shine
  51. Diamonds Travel To The Space
  52. Vicenzaoro January postponed to March
  53. America’s Youngest Jeweller Starts Business via Instagram
  54. Concerns over conflict gold arise again
  55. The 1st International Gemstone & Diamond Trade Summit Wraps Up in Macao
  56. The Knot’s Study:Over 30% of Respondents Say Natural Diamond Unimportant
  57. Pantone’s 2022 Colour of the Year: Very Peri
  58. Phillips Jewellery Auctions Fetch over HK$181 Million
  59. The World’s First Pure Gold Castle of Magical Dreams by CHOW TAI FOOK
  60. Jewellery Sales Jumped 78% During the Thanksgiving Holiday
  61. Gem Auctions DMCC’s Debut Auction Successful
  62. Cartier’s Christmas Tree Lights Up the City with Love and Hope
  63. Rediscovering Lacloche in Hong Kong
  64. Blue diamonds to lead Christie’s HK autumn sale
  65. JMA show to stage next Thursday
  66. HK auction to help Cambodian kids
  67. Basel fair cancelled again
  68. HKDI show to continue in Dec
  69. Gemfields sells 7,500-carat emerald for good
  70. Sustainability is key to diamond purchases, a report says
  71. Christie’s Geneva jewellery sale fetches CHF53.7m
  72. Cibjo forms working group on fei cui standards
  73. Only Watch raises CHF30m for DMD research
Read More...


HIGHLIGHT

  1. US market unfolds changes and potential
  2. The queen of gems, the gem of queens
  3. Classics return

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  • Platinum Love event in China
  • Baby Darling series pendants
  • Baby Darling collection promotion

PGI confident in China despite challenges

Platinum jewellery sales in China continued a five-year slump in the recent past triggered by rising dominance of generic designs, unbranded offerings and the weight-based proposition. The uniquely special preference of younger consumers had a role to play too, in the dwindling demand for platinum. Tim Schlick, chief strategy officer of the Hong Kong-headquartered Platinum Guild International (PGI), offers an in-depth analysis of all these issues, and examines the appropriate strategic response to regain platinum's positioning in the China market as an extremely precious, highly valued metal which is also associated with 'love'.

 China is one of the world’s largest consumer markets for platinum jewellery besides the United States, Japan and India. According to a PGI report, Platinum jewellery accounts for about 70 percent of the metal's total demand in China. Nearly 12 million items of platinum jewellery are sold in the country every year. The drop in platinum price was expected to boost the sales of jewellery, making it more affordable for the younger consumers. These consumer generally buy more ‘approachable’ items for day-to-day use. However, sales figures actually went down by seven percent in 2018 compared to the previous year.

 “The Gen Y and Z consumers have a very different attitude to jewellery differently from previous generations,” said Schlick when explaining non-price factors of demand. “Not only does jewellery compete with other luxury items, it also faces keen competition from ‘experience products’ such as travel." He believes jewellery is no longer a must-have item for younger consumers, "they are essentially immune to marketing that appeal to superficial desires and marketing,”

 On the contrary, the younger generations are impressed by brands with substance, he suggested. “If brands have a compelling story, consumer will listen. They crave love, intimacy and meaningful connections more than their elder predecessors. They are possibly the most romantic generation of all times - willing to celebrate authentic love with jewellery,” he said.

 Last year, PGI undertook various initiatives to address different challenges in the China market. The focus remained on bringing novelty to the market, creating buzz and making platinum more attractive on the whole. Some of the notable initiatives included the appointment of Mainland actor Yang Yang as PGI’s China ambassador in February and launch of the Moment of Eternity collection in October.

In the Chinese Mainland, around 20 manufacturers, some 40 retailers and nearly 5,700 stores represent the platinum jewellery market, according to PGI. On one hand, Gold continues to be a very popular choice. On the other, making and selling platinum items are not encouraging to practitioners due to the low profit margin. As a result, there is little incentive to invest more in product design, craftsmanship and marketing of platinum jewellery.

 “In the past few years, PGI has continued to guide and support retailers and manufacturers of platinum items - helping with marketing and introducing new, innovative collections in this fast-changing market,” Schlick said.

 For example, the association has worked with key manufacturers in China on new collections and technological improvements. The effort helped them avoid direct price competition through design and consumer differentiation, contributing to improved profitability.

 It also worked with retailers, helping to fine-tune their platinum portfolio to meet evolving consumer needs of jewellery. “The new collections allowed retailers to charge a premium and enjoy better profit margins. The improved profitability also allowed retailers to reward front line sales associates with better financial incentives, motivating them to sell more platinum jewellery. The net outcome is a win-win scenario for all parties involved and a healthy value cycle,” he added.

 PGI has strived to enhance consumers’ shopping experience and add value to platinum products. To that end, it assisted jewellery retailers to refine their display props and strategies. It also worked closely with key trade partners who aspire to make platinum a prime ingredient to their business success.

 “Retailers and manufacturers who proactively adapted to evolving consumers’ needs have been particularly successful in selling and marketing platinum jewellery,” he said. However, many others in the sector need to follow suit to accelerate the expansion of branded platinum collection-based jewellery, which better meets consumer needs and makes platinum more profitable for retailers.

 According to the PGI report, unbranded items without a compelling brand story accounted for 80 percent of the total platinum jewellery sold in China last year. As much as 75 percent of platinum pieces were sold by weight, while 65 percent were plain in style.

 Despite being the favoured “love metal” for bridal jewellery, platinum has experienced increasing pressure from the growing popularity of gold. To make it worse, fewer number of people in China are getting married.

 “The bridal segment still accounted for 22 percent of platinum’s volume share among tier one to tier three urban markets. Platinum bridal jewellery acquisition rate for brides still stands at 53 percent. The drop in sales volume in the bridal segment can be largely attributed to the declining number of people getting married in China” Schlick said.

 He believes that platinum will continue to be a preferred choice for bridal rings because of the ardent fans of the white metal - women who are younger, better educated, more sophisticated with higher income. They have a clear preference for platinum over pure gold.

 PGI is on the constant quest for new market opportunities for platinum jewellery. It keeps venturing into different segments, such as jewellery as gifts. “Among the 78 percent of non-bridal business, there are countless opportunities. One of which is ‘motherhood jewellery – a gift of love for young women becoming mothers,” said Schlick.

 This May, PGI partnered with Hong Kong-based Luk Fook Jewellery to launch the Baby Darling collection - platinum that captures the deep joy behind the monumental transition of being only a wife to being a mother.

According to PGI, modern Chinese families want more exclusive collections of safe and meaningful gifts for their new-born babies, which opens a new window for branded, beautifully-designed, rare and safe platinum jewellery.

 “Extensive consumer research across regions and segments shows us the massive market opportunity among 26 million consumers in China - people looking for the perfect gift when celebrating a cherished newborn. Rare and hypoallergenic platinum is the perfect choice, while the Baby Darling series is a symbolic celebration for both the wife and the baby as they embark on the new adventure in life,” says the association.

 Although the lull platinum jewellery market in mainland China is expected to persist in the next two or three years, things should turn around after the fundamental issues mentioned earlier are solved. PGI has seen encouraging results from some manufacturers and retailers, noticing an early indicator for new growth in platinum in the long-term.

 “We will carry on the incessant efforts to reinvigorate the platinum business through current and future market makers. Working with our trade partners, we continue to build role models across different purchase occasions in addition to the bridal segment, making platinum a safe bet for future growth,” says Schlick. (Photo courtesy: PGI) 

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