Young consumers to drive platinum sales in India

Chennai: Investment in precious metal, in India, mostly means investing in gold for the middle and upper middle class families. But then, platinum is more precious and a far better investment option, says Vaishali Banerjee, Managing Director-India, Platinum Guild International (PGI).

The sale of platinum jewellery has been single-handedly spearheaded by PGI, especially in four countries- India, China, USA, and Japan. India has been in the forefront of this growth, despite challenges from new legislations such as demonetization or the introduction of the Goods and Services Tax (GST).

Bridal trends and the love-gifting strategy have helped retailers find a foothold in the gold-dominated industry. "Designs inspired by global trends and the distinct emotional positioning of platinum makes it the preferred choice of millennial," says Vaishali.

Young consumers, especially brides have contributed to the demand growth the last year. Some areas have even outperformed the consumer retail sales growth of gold here. "This generation wants novelty and versatility in jewellery which platinum offers in abundance," says Suvankar Sen, Director of Senco Gold & Diamonds.

Consumers are well aware of platinum, with the 'spontaneous awareness' index being as high as 74% last year. "Now is the time for conversions. That means the variety and occasions for buying platinum have to change," Vaishali says.

Geographically, the south of India has seen a marked growth in market performance. There are a total of 554 stores in 106 cities, including tier II and III cities. The south is a jewellery hub and has specific design preferences in terms of quality and purity of the metal. Gold and platinum can coexist believes Vaishali. "For young India, a distinct positioning has been created for platinum versus gold, tapping into modern couples' desire for jewellery. All can coexist with platinum being the expression of love," concludes Vaishali.