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Platinum gains popularity when buying jewellery

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Prabhuddha N and his fiancée have purchased a set of platinum engagement bands to commemorate their engagement, moving away from the family’s tradition of exchanging rings.

“Getting each other a platinum band is in trend and a tad different from the rings, with more scope for design and personalisation,” he said. Such buys are pushing platinum sales with retailers claiming a 25% increase in sales (by volume) on the back of doubling ticket size. Bands that cost Rs 30,000 on an average replacing rings whose rate amount to Rs 17,000 (on an average).

Industry body Platinum Guild of India, reported a 21% growth in the previous year, a revival from the 10% growth reported in 2016.

A Q1 report from the guild added that India’s economy returns to strong growth, and the implementation of Goods and Services Tax (GTS) Law will continue to benefit organised trade, the primary distribution channel for platinum jewellery.

Platinum jewellery retail sales among reported a robust growth of 25% , mainly contributed by heavier products as part of platinum Evara collection sold by retailers.

Jewellers said that individual purchases for occasions and self-gratification, rather than for investment purposes was driving sales. Purchase of love bands for engagement and jewellery for other supporting occasions related to the wedding are driving sales, leading to increase in ticket size. “Earlier purchase was confined to rings – which contributed to 85% of the sale. Now, rings account for 50% of purchases with bands, heavier jewellery coming into the fore. Individual occasion-driven purchase has helped the sale grow 25% each year despite the country’s dependance on gold,” said Vijay Jain, CEO, ORRA. Retailers add that the buyback option has further spurred purchase of the metal. Another reason for the retail focus to turn towards higher weight categories is the emergence of men’s jewellery. “We see heavier purchases, such as chains and bands from men. They go in for larger pieces, which in turn means higher margins,” said Anantapadmanabhan G R, MD, GRT jewellers. Platinum Guild’s figures for South India show that men’s category contribute to 18% while women’s category sales were 12%. Men’s platinum jewellery, an emerging segment which grew by 39% in 2017. Vaishali Bannerjee, managing director India, PGI, said that young buyers were driving sales.

“There is a bigger opportunity in the occasion-driven purchase for among youngsters. We see customers as young as 16 making their purchases for milestones such as birthdays and anniversaries,” she added.

Courtesy: Times of India/ Image: thehansindia.com

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