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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