While the Covid-19 epidemic is still raging there, people are seeing the light at the end of the tunnel and preparing for a post-crisis recovery. The Platinum Guild International (PGI) has recently conducted a survey reviewing the performance of platinum jewellery in 2019 and the impacts of the epidemic on consumers in the four key markets. Digital consolidation, mid-market extinction and branded storytelling are the trends that point the way to the post-Covid recovery, says PGI.
The findings are published in the 2020 Platinum Jewellery Business Review (PJBR) conducted by PGI surveys over 1,000 manufacturers and retailers and more than 4,000 consumers in Japan, China, the United States and India, the four key platinum jewellery markets.
“The initiatives that grew the platinum jewellery business in 2019 tapped into tectonic shifts that will only be accelerated by Covid-19. We now see this playing out in real time. Social distancing has led to an upsurge in digital shopping, but digitalisation works best when woven into a seamless strategy to engage consumers across multiple touchpoints. Jewellery, a category still too generic in its approach, needs more products focusing on consumers’ unmet needs that create strong and differentiating brand stories. And it’s time for the jewellery industry to get off the fence and stake a territory far from the middle,” says Huw Daniel, PGI’s CEO.
For digital consolidation, PJBR says digital is a key element in an omni-channel experience. Jewellery brands need to be nimble in converting consumer engagement into purchase in a socially distanced world. The report cites PGI’s 2019 programmes that connected consumer behaviours and drove sales. Platinum Born, for instance, is a fashion jewellery brand co-launched by PGI USA and PGI Japan. The brand went online in 2019 capitalising on strategic digital marketing, social media, celebrity endorsement and expanded sales channels, it achieved a 64-percent year-on-year growth in units and 39 percent y-o-y in value last year.
In view of branding and storytelling, consumers showed greatest interest for branded platinum jewellery launched by PGI including Hello Me, Platinum in Japan and Men of Platinum in India. “A majority of consumers surveyed expressed their willingness to spend more or the same on precious jewellery than pre-Covid-19 after things return to normal, strong brands that tell a compelling story will lead the way to recovery,” the report said. Participating retailers in India who carried the Men of Platinum branded collection recorded a 82-percent y-o-y sales growth during the campaign period.
It is paramount for retailers to find and own the right space with the right business model in a world that has become more competitive overnight, says the report when addressing to the trend of mid-market extinction. Launched in 2016, the Season of Love programme in aims to drive conversion to branded platinum jewellery from generic low margin jewellery in India. It expanded to over 1,200 stores across 270 cities last year in the country, boosting retail sales volume by 40 percent. It will also be a cornerstone of PGI India’s business recovery plans after the lockdown is lifted.
PJBR 2020 says the majority of consumers surveyed are re-evaluating their priorities in life and show their willingness to spend the same or more on jewellery than the pre-crisis period. Within jewellery, love-gifting category is most likely to benefit. “Jewellers who are prepared to meet that need will benefit, and platinum, the precious metal most strongly associated with love and meaning will be an integral part of that message,” the report suggests. (Photo courtesy: PGI)
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