The latest Platinum Jewellery Business Review (PJBR) indicates positive momentum for the platinum jewellery industry later this year, with China leading the recovery in Q2. According to PGI’s quarterly research, despite jewellery demand beginning to falter in Q1 2020 due to the impact of COVID-19, platinum is better positioned globally due to the low metal price combined with the newly launched collections to attract young consumers, and the competitive landscape compared to other jewellery categories.
Image credit: Platinum Guild
Huw Daniel, CEO of Platinum Guild International, said: “In an unexpected turn of events, the high price of gold has made platinum more attractive for jewellers. Coupled with the successful launch of branded collections and targeted campaigns, confidence in China has increased. These factors, combined with a reduction in experiential spending suggest that platinum demand could see a recovery in jewellery, as early indicators from Q2 show.”
Despite the overall pandemic-related disruptions across the jewellery industry, Chinese jewellers are investing more on platinum. In Q1, platinum jewellers took advantage of low prices to stockpile and order new products and PGI’s partners have already recorded a gradual recovery in the second quarter indicating improved sentiment for the platinum jewellery industry.
PGI is also working with partners on campaigns across China and is relaunching the Reboot Campaign in Henan province in June. This is a similar programme to the successful 2019 Reboot Campaign which was initiated in Guangdong with 252 retail stores and 7 manufacturers in the region.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
