India: irresistible platinum business opportunity
Recently PGI published its’ PGI Insight under the heading, India: making platinum an incremental and irresistible business opportunity, spread in 11pages with the related graphs & charts and that said, India has witnessed fast-paced economic growth in the last decade and the gem and jewellery industry is a significant contributor to this growth, accounting for 7% of the country’s GDP.
While traditionally a market for gold jewellery, Indians have already developed a strong appetite for platinum jewellery over the past decade since Platinum Guild International (PGI)’ began market development in the country from 2000. The demand for platinum jewellery experienced a CAGR of 8% between 2013 and 2018, making it the fastest growing platinum jewellery market globally.
India’s strong and embedded jewellery culture has witnessed significant changes over the past decade. These shifts have been fuelled by demographic trends impacting consumption, a fast changing socio-economic environment and a changing retail landscape.
Like most countries with a long and illustrious history, India’s jewellery culture has always been vibrant. Indians mark weddings, cultural, religious festivals and auspicious dates with jewellery purchases. For centuries, jewellery in India has been synonymous with gold jewellery, purchased both for ceremonial and investment purposes. Sold by weight, gold jewellery is strongly linked to exchange and inheritance of wealth, and continues to represent family wealth and social status.
Over the past decade, India has witnessed a growing shift from a savings mind set to active consumerism. Urbanisation has led to a shift towards nuclear households with higher disposable incomes and independent decision-making powers. Rapid urbanisation has expanded consumption hotspots beyond metro cities to Tier 1, 2, and 3 cities, with affluent households fuelling consumption across the top 48 cities across the country.
India’s demographic advantage continues to spur growth through a large young working-age population, who are the chief wage earners of households. Educated, digitally connected and affluent, they are the key consumer opportunity in India, creating a shift from traditional values to more modern influences when it comes to purchasing decisions.
By 2021, India is expected to have 61% of its 1.4 billion population below 35 years, and they are driving consumption across categories. This generation of affluent millennials have grown up in a time of opportunity and affluence, encouraged to follow their path, with an emphasis on self-expression, self-image and showcasing their personal preferences.
Platinum in India has built aspiration and relevance among these young consumers by building differentiation from gold through a strong emotional and image-driven equity. Platinum jewellery is seen as a symbol of love and an expression of commitment, making it ideal to mark milestone moments of love and bonding. The metal’s rare nature gives it additional value and appeal: young affluent consumers who are increasingly driving purchase decisions choose platinum for its modern, versatile and elegant designs that set them apart and help make a unique statement. (Note: the key part of the whole PGI Insight, sooner report would be carried here.)
