Platinum jewellery sales up 26% in FY 19

Chennai: In an indication of growing platinum consumption, data from industry body Platinum Guild International saw a 26% y-o-y rise in the sale of platinum jewellery in India in FY 19. Men’s platinum jewellery and younger consumers’ self-purchases made for the increase, says the platinum jewellery business review report. Last year, the sale of platinum jewellery grew at 21%. The overall platinum jewellery market is pegged at Rs 3,000 crore. “This year, PGI India will continue to work with strategic partners to expand its presence in tier 2 cities to optimise the growing affluence and preference for platinum jewellery in these markets. The outlook for 2019 is strong and we expect a growth of 15%-20%” said, Vaishali Banerjee, MD India, PGI.

Men’s jewellery, which forms 40% of the total sale of PGI’s members, has been growing at 20%-25%. Suvankar Sen, executive director, SENCO Gold & Diamonds, said . “Our men’s category has registered a growth of 95% and we are expecting it to grow by 100% in the coming year.” Jewellers further add that close to 50% of their purchase are by men. Vijay Jain, founder and ex-CEO, ORRA adds that in north India, kadas or arm bands for men do well and an increasing number of men are replacing their gold with platinum chains. Men’s jewellery market is estimated at over Rs 954 crore, according to Euromonitor International.

Jewellers also add that customers below 40 years of age spearhead the increase in consumption.“The younger generation, especially when it comes to marking significant emotional milestones often come looking for platinum jewellery. With increased awareness, platinum today ensures younger walk-ins at our showrooms. We plan to take platinum along as we expand into tier 2 & tier 3 cities,” said GR Ananthapadmanabhan, MD, GRT Jewellers.

However, in the report, it adds that even as elections would cause disruptions in demand in one quarter, the rest of the year looks bullish with more auspicious days in the Hindu calendar.