Platinum jewellery sector

Special Product Groups

Platinum Jewelry

Divya Manivannan

Masters In Fashion Management

What is platinum and how it is been

accepted in the market• One of the rarer elements in Earth's crust with an average abundance of

approximately 5 kg.

• It occurs in some nickel and copper ores along with some native deposits,

• Mainly South Africa, which accounts for 80% of the world production.

• Because of its scarcity in Earth's crust, only a few hundred tons (193

tons) are produced annually, and given its important uses.

• Platinum's wear- and tarnish-resistance characteristics are well suited for

making fine jewelry.

Platinum Demand - Jewelry

- Medical /Bio

- Petroleum

- Chemicals

- Electrical

- Glass

- Investment

- Automotive

- Jewelry (38%)

What makes Platinum Jewelry Popular?

• The platinum jewelry designs are considered to be contemporary and

hence appeal to the young and trendy.

• Contemporary designs go well with western formals and party wear.

• Some users also feel that platinum is the jewelry for the modern,

independent woman.

• Consumers feel that gold jewelry needs more effort in terms of

maintenance compared to platinum jewelry. Since platinum is

stronger than gold, it is sturdy and scratch-resistant.

• Some consumers preferred platinum because of its exclusivity.

• “It is costlier than gold, so only the rich can afford it”. It helps the

wearer make a status statement.

Platinum Symbol

Platinum Hallmark

Global Platinum Market

Global Platinum Market

Global Demand & Production

Global Players in Platinum Market

Luxury – Bridge – Premium

Platinum itself is considered Luxury, Top Retailers are Luxury Brands, And they extend themselves for exclusive and

premium customers.

Example –Tiffany & Co.

Extension through price variation not

Brand

Indian Platinum Market

Positive Growth

Change in preference from Gold to Platinum

Indian Platinum Market

• The buying trend leaning more towards everyday wear and gifting, leading

to an acceptance of platinum in this segment.

• The primary focus for retailer’s remained bridal jewelry because of the

higher price per piece

• PJ sales is contributing an average of 5% of total sales for retailers selling

the product and up to 10% for some key jewelers.

• Platinum Day of Love (PDOL) - Couple Bands & Rings continued to be the

largest sales category for platinum jewelry, accounting for 61% of the

product split in terms of volumes

• Men’s jewelry range (chains and bracelets) in platinum is expected to be a

future growth driver by retailers; with the segment currently standing at

21% of the product split compared to 17% in 2013

Consumers Shift in Purchase Trend 2014

• Growth of Platinum Sales went up by +28% in weight in 2014

• Despite a slow start in 2014, growth in platinum sales was seen across

different types of outlets.

• Jewelry retailers went up +33% during 2014 while the other outlets

grew by +19%

• Strong growth in 2013 and higher gross margins in 2014, contributed

to the India market seeing a compounded annual growth of 80% in two

years.

• According to Platinum Guild International (India), there are around

300 stores that sell platinum jewelry.

• The platinum sales are expected to expand to more than 1,000

showrooms in the next 2-3 years.

Platinum Jewelry Sales - 2014

Indian Market Preferences

Platinum Sales % Platinum Sales %

Platinum Sales % Platinum Sales %

25 % 10 %

40 % 20 %

Total Retail Market Share - IN

Premium Market Top Players in India- Tanishq

- Prince

- Nakshatra

- D'Damas J

- Nirvana

- Orra

- Gili

- Asmi

- Kiah

- Rivaaz

- Parineeta

- Diya

- Joy allukas

- Evara

- Caratlane.com

Mass Market Top Players

in India

Platinum - Supply Chain Model

Mining - South Africa

Limited Demand in Bars and Coins compared to Gold

Highly used in Souvenir and Small sized jewellery

Challenges faced in Supply Chain

Product Life Cycle

Long Duration Of Maturity Period

More than Gold & SilverLesser than Diamond

Slow Decline Doesn’t slump down like other

products

Product Life Cycle – 4P’s

Intro

Growth

Mature

Decline

Product Price Place Promotion

- Opportunity & New Intro

- Product as per customer demand

- Higher Price comparatively

- Premium pdts make no profit

- Tier I Cities- Niche market- Demand to be

created

- Little or no competition

- Emphasize on product, Ambassador & TV / Print Ad

- New Variant Launch- Competitors arise &

their pdts

- Increase in Sales- Decrease in Price

- Implement strong retailing.

- Attract rural market- Retailing in all

formats

- Emphasize on Brand- Emotional Advt

campaigns- 360 degree

promotion.

- New Product Launch- Saturation Point- Retain Loyals

- Decrease in Price- Profit Falls

- Emphasise on Penetration &distribution

- Tier II & III - High on ERetailing

- Emphasize on Sponsorships & Public Relation

- Retain Loyals

- Brand Extension- New Product replaces

the existing

- Decrease in pdtspricing

- Increase in Discounts andschemes

- Profit completelydepends on distribution

- Coupons & S. Offers for declining pdts

- New product promotion

Market Entry Strategy Of Gitanjali Group

Shifting regular users/ frequent buyers of other jewelry to

platinum jewelry.

Example on Introductory Stage

Product Strategies

Range Planning

Example – Evara

Classification of Occasions with

the marital status of a person

Product Strategies

Range Planning

Product Strategies

Range Planning

Product Strategies

Range Planning

Product Classification

Retailers Value Preposition to Customer

Platinum Value Preposition - Retail

Preferences

Evara

Tanishq

Retailing Strategy - Retailers to Customer

Selling Tricks

Increasing No. of Online E-Retailing

Extreme growth of platinum online – recent launch Evara

and existing Caratlane & Orra

About 25% of Profit is spent on Marketing

Marketing Strategy

Platinum

Platinum Day of Love – Platinum Love Bands –

Got extensively popular in china

Different techniques are

used to attract male

audience – because they

don’t connect with

platinum jewelry

Marketing

Strategy

Diamond needs Platinum

Marketing

Strategy

Promotions

• Special Customer Event

• Create a Platinum Exhibition

• Brand Ambassadors

• Organizing a ‘Happy Hour’

• Bridal Shows ( Tarun Tahiliani & Orra)

• Link in with any other local happenings

(film industry, award functions)

• Create Special Displays (Window or

instore)

• Invite a Fashion Expert

• Charities – Fund Raising

• Special Offers ( Engagement Offers ) x

Examples - Promotion

Advertising Strategy

Emotions (Love, Relationship)

Feeling (Royalty, Exclusivity)

Brands Extensively in Social Media

Tanishq, Caratlane & Platinum Day of Love are leading the pack on Facebook with the

rest far behind them. Prince Jewelry is a late entrant and is on a fan acquisition spree

(clocking a staggering 75% growth rate).

Brand Comparison

Economic Times - Current Platinum Market

Platinum becomes cheaper than gold; demand up 40-50% in Indian markets in Feb-March

Future Scope - Platinum Market

Global Outlook

• Retailers anticipate that in 2015 the retail market will grow by 2.3% in

ounces v 2014.

• In 2015, India is expected to grow by a further 23%, the USA by 7%

and Japan by 1%.

• The Chinese market is expected to be flat.

• In 2014 total platinum retail sales across the four key markets was flat.

• India platinum retail sales grew by 28%, the USA grew by 8% and

Japan grew by 3%.

• In China (the largest platinum retail market) platinum retail sales fell by

3% driven by economic slowdown.

Thank You