Reinforcing the power of precious jewellery to build value and uplift life: Key learnings from ‘Platinum Guild International’ global study

retail
By retail August 7, 2020 18:37 Updated

Reinforcing the power of precious jewellery to build value and uplift life: Key learnings from ‘Platinum Guild International’ global study

As the impact of Covid 19 deepens across industries, Platinum Guild International (PGI) commissioned a quantitative research across its key markets to study the impact of the pandemic on the attitudes, behaviour and expectations of precious jewellery buyers.In India, the study was conducted in Mumbai, Delhi, Chennai and Hyderabad among precious jewellery buyers from higher socio-economic class (SEC A) in the age group of 20-40 yrs.

“The Covid-19 situation has caused unprecedented challenges in India as well as globally. When it comes to the consumer sentiment, of course it has been impacted, however the platinum consumer, being younger, is more optimistic & resilient. Jewellery has always been an integral part of the Indian culture. Ithas held emotional significance in various special occasions and milestones in a person’s life.

Through the PGI Global Study, we have found key consumer insights that indicate that while consumer spending will be more deliberate, it will not be unnecessarily curtailed. Consumers will lean towards what delivers value & has meaning. Jewellery will be a means of positive reinforcement as they step out to reclaim their life and seek to mark meaningful relationships and milestones. In this context, the platinum brands are perfectly poised to fit into thisspace. We have always stood for reaffirmation of love, life, & relationships and that is what the consumer seeks eventoday.” – Vaishali Banerjee, MD, Platinum Guild International (PGI) India

Here are a few key insights and learnings from the survey:

BUILDING VALUE IN LIFE AND CELEBRATING CLOSE RELATIONSHIPS WILL BE A PRIORITY :

  • For the affluent young buyers of precious jewellery, while the dominant sentiment remains caution, they will continue to consider purchase of precious jewellery once things return to normal
  • Jewellery has a distinct advantage among all discretionary categories as 66% of consumers ‘want to purchase something that maintains its value’ and 64% want to buy something ’personally meaningful’
  • The percentage of willing to spend more or same was significantly higher among consumer segments with high affinity for platinum ranging from 75% to 90%
  • While 69% consumers preferred spend more or the same as before on jewellery purchased for self while 60% preferred to spend more or the same as before on jewellery purchased for the purpose of gifting.

HIGH QUALITY AND LASTING VALUE BUILDS ASSURANCE AND DRIVES PREFERENCE FOR PRECIOUS JEWELLERY

  • The strong willingness to spend on precious jewellery is proof of the integral role it plays in Indian culture. It has always been a marker of social and personal milestones in life
  • For most consumers precious jewellery has a store of value and the quality of the metal is of high importance to them
  • Platinum as a high quality metal offersa quality assurance card to certify 95% purity in every piece of jewellery under PGI programme.
  • When it comes to the reason behind the importance of precious jewellery to consumers, the survey found that 89% of the respondents considered precious jewellery to be valuable and that it maintains its value over time, 88% mentioned that even if in small numbers, they prefer to own precious jewelry made of high-quality metals while 82% believed that precious jewelry is appropriate to celebrate milestones and memories in their lives.
  • BUILDING BRANDS WITH EMOTIONAL MEANING AND DESIGN DIFFERENTIATION WILL BE THE KEY COMPETITIVE ADVANTAGE
  • As high quality becomes the category norm for precious jewellery, building brand differentiation will be a key strategic advantage
  • Acquiring a piece of jewellery as a symbol of love and bond in a relationship or for self-affirmation, infuses meaning beyond material value and makes jewellery a true treasure of life
  • The impact of Covid -19 on relationships hascreated a stronger sense of appreciation and gratitude towards one’s partner, jewellery as a vessel of love and meaning holds a special place as consumers seek to reaffirm their relationships post a long period of anxiety
  • 89% of the respondents strongly believe that they are more thankful than ever to have a partner, while 83% felt that they have a new found appreciation for their partners. Interestingly, 68% of the respondents also revealed that Covid-19 has made them desire a stable and long term relationship
  • Platinum is desired as a symbol of love and stands for enriching and uplifting life and relationships. It is likely to have a higher resonance among these consumers as70% of single consumers in a relationship claim they are likely to buy engagement ring / bands once the things return to normal.
  • However, with an overarching cautious mood, the demand will need to be generated by tapping into the unmet consumer needs. Consumers will expect brands to be sensitive to the current reality and reinforce positive values as they adapt to the new normal.

Online a sunrise channel, but majority of consumers are willing to visit the stores once reassured on implementation of safety measures.

  1. The extended lockdown with limited access and restricted movement has led to a fast track adoption of digital, e-commerce across industries has become a key focus to drive business growth.
  2. Consumers who are willing to look at e-commerce as a shopping option grew from 8% (pre-Covid) to 14% (during / post Covid). More than half of the consumers are still looking at jewellery stores as their preferred place to shop as 58% said they would consider going to a store if the store took “special safety measures”.
  3. Consumers with higher affinity to platinum indicated higher adoption of online channel at around 18% and at 63% they were also more willing to visit the stores with extra safety measures

To sum it up, Indian jewellery buyers are looking to build value through their assets and reinforce their close relationships and self-affirmation. Jewellery can play a critical role in fulfilling their need to acquire an asset with lasting value and uplift life through personally meaningful acquisitions. However, the consumers are going to be cautious and demand creation through marketing will be an imperative to bring consumers back to the stores. Online will play a greater role and ensuring safe shopping environment will be critical to build consumer confidence as they wish to return to their trusted stores.

 Purity Assurance Program:

In order to assure consumers of the purity of platinum jewellery, Platinum Guild India Pvt. Ltd. Has appointed Trust Ever Assurance Services LLP to audit and monitor its Quality Assurance Scheme. Under this scheme, all authentic platinum jewellery in India comes with a Quality Assurance Card and bears the purity mark of “Pt 950” stamped inside the piece. This also serves as an assurance of a ‘buy back’ programme.

 

Courtesy: Retail jeweller India news Service

retail
By retail August 7, 2020 18:37 Updated
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