Why Baby Jewellry Could Revive Platinum
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(Kitco News) - The Platinum Guild International believes it has found niche in China and Hong Kong to lift platinum sales: new mothers.
The association released its platinum jewellry Q1 sales report last week that shows many markets are flagging, but PGI believes there may be a niche it can tap in Asia.
"Leveraging platinum’s strong association with love, PGI and a Hong Kong-based retailer co-launched a new motherhood / baby jewellery collection in more than 1,000 stores across China in May 2019," writes PGI.
"This piece-priced collection is conceived to deliver higher margin and turn than weight-priced generic platinum."
The Platinum Guild International reported mixed sales in Q1. U.S. retail sales at jewellery stores fell compared to Q1 2018. China’s overall store traffic slowed, too, and was down 7% year-on-year.
In Japan, PGI said jewellery sales had a slow start but picked up again in March. Platinum jewellery sales in units grew 0.3% year-on-year in part because of the low platinum price, and by taking market share from white gold, which continues to decrease.
In India, the jewellery industry faced headwinds, struggling with both tight liquidity and new regulation on cash spending ahead of the election in Q2.
Conversion strategies and marketing campaigns aimed at young consumers drove platinum retail programme sales up 15% year-on-year in Q1, while PGI’s strategic partners saw their platinum jewellery business grow at a higher rate of 32% year-on-year.
Written with material from Platinum Guild International news release