Latest PGI Insight Confirms Branded Platinum Collections Drive Incremental Growth in Fine Jewellery Sector
(7 July 2021, Hong Kong) – Leveraging platinum’s equity as a symbol of love, meaning and authenticity, Platinum Guild International (PGI) employs a consumer-centric approach to strategically brand fine jewellery collections. As highlighted by PGI Insight released in July 2021, strong and meaningful branded collections with innovative design are more appealing to address consumers’ needs of commemorating and provide a greater emotional value to the jewellery. This approach allows platinum jewellery a differentiated proposition for retailers to improve margin and profitability, grow new consumer segments and drive incremental growth.
In many luxury categories, prominent retailers have created collection-based brands and products; while many traditional jewellers have been slow to adopt an effective branding strategy at the product level. “Jewellery has a significant opportunity to expand share of wallet through branded collections. PGI supports partners by identifying different consumer segments that are driving growth across major markets. This varies by market, but our focus has been creating in-house brands or co-developing branded collections with partners to ensure platinum stays relevant to the consumer by leveraging its emotional value,” says Huw Daniel, Chief Executive Officer of PGI.
Branding and branded collections ingrain platinum’s equity as a premium metal of value and meaning
After decades of consistent messaging, platinum’s equity as a premium, high-quality metal associated with emotional value is firmly established across platinum’s major markets. Driving the growth of branded collections is one of the most crucial levers in enabling platinum to further embed its brand equity in the mind of consumers as a token of love and personal meaning thereby encouraging spending on gifting and self-gifting respectively.
Within the jewellery industry, branding has been proven to be important to deliver meaning or messages to target relevant consumer segments. For instance, in India, one of the largest gold jewellery markets in the world, the “Platinum Days of Love” collection was developed based on the insight that young couples crave a modern symbol of love and intimacy within the traditional arranged marriage. By creating a “rare love” moment for spousal love-gifting, the brand has built strong desire and preference among its core consumer group by bridging traditional and modern values and symbols of love.
Design and technology innovations key to the success of branded collections
Design is key to enticing consumers into purchasing jewellery, especially among younger generations. This has recently been addressed by developing branded collections as a platform to showcase new designs and generating novelty among consumers.
One of Chow Tai Fook and PGI’s collaborations, the “G&W” collection is a branded collection with forward-looking designs and manufacturing technologies to engage consumers with a compelling story that modern women strive to be a better version of themselves without being confined by stereotypes. Chow Tai Fook has since evolved its “G&W” collection into a platform on which products utilize new concepts and techniques to deliver sustainable growth.
Branded collections are key to increasing margins and profitability
Platinum’s strength lies in its ability to attach emotional value, which allows for increased margins while attracting new customers. It has been very evident in mainland China where “Pt Moment”, a non-bridal branded collection launched in 2019 by PGI to reflect the aspirations of Chinese millennial consumers, has been expanded across more than 1,000 stores. Incorporating designs that reflect current fashion trends, the Pt Moment collection is estimated to improve gross margins by 8-15% compared to generic, plain products and improve the average product turnover from over 12 months to an average of 8-10 months. It has brought excitement to mid-sized retail partners and the platinum jewellery sell-in volume of this collection grew by 19% year-on-year in 2020.
Pt Moment Collection (China)
Branded collection strategy ensures platinum stays relevant to consumers and grows new segments
As each market is driven by different social-demographic and cultural trends and spending behaviour, the unique properties of platinum can be localised by branded collections, which ensures platinum stays relevant to evolving consumer needs, and captures opportunities in new segments.
Co-launched by PGI and three leading domestic jewellery retailers in Japan, the “Platinum Woman” collection expresses a woman’s inner sparkle through platinum. It was introduced in October 2020 to inspire and fulfil the needs of younger generations who are less engaged with fine jewellery than their predecessors who are traditionally primary consumers of platinum jewellery.
Given the rapid expansion of online channels in Japan, the brand integrated social media and the retail partners’ physical and online stores to provide seamless access to affordable and meaningful platinum jewellery, while enabling introducing younger consumers to this precious metal. In Q4 2020, the online launch campaign reached over 10 million consumers predominately in the target age group of 25-34 and below.
Combining design and technology with the delivery of intangible value, branded collections ensure platinum drives increasing margins and stays relevant to consumers in growing new segments. In order to maintain the momentum that platinum has achieved during the past year, branded collections will continue to play a significant role in the platinum jewellery global market strategy.
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