Retailers predict market growth of 2.3% in ounces compared to 2014.
Platinum Guild International has published the findings of its second annual Retail Barometer, predicting growth of 2.3% in ounces in 2015 compared to 2014 and significant gains in India.
The Barometer, conducted by independent platinum market experts and industry analysts, reveals the consumer retail sales data of platinum jewellery in 2014 and predictions for 2015.
The research covers over 400 jewellery retail companies with close to 40,000 outlets in the four main international markets; India, China, Japan and the USA.
According to the report, retailers anticipate that in 2015 the market will grow by 2.3% in ounces compared to 2014. Additionally, India is expected to grow by a further 23%, the USA by 7% and Japan by 1%. The Chinese market is expected to be flat.
These figures show a marked improvement on 2014 where retail sales in ounces across the four key markets was flat.
Platinum Guild International chief executive officer Huw Daniel, commented: “Continued growth in the platinum jewellery market is important, as the jewellery category represents 35% of all global demand for platinum. 2015 is expected to deliver higher growth and clearly there are concerns about the Chinese market, but PGI have plans in place this year to address the challenges and to capitalise on the latent demand. India is very exciting and PGI is bullish about the prospects there, particularly in the light of the launch of the new bridal segment, Platinum Evara.”
India is a particularly exciting market for platinum in 2015, with growth expected in the region of 23%
India, starting from a lower base than China, has experienced a compounded annual growth of 80% in the last two years. The result was particularly impressive as 2014 had been a difficult year for the Indian retail trade, with weak sentiment driven by May 2014 General Election, a liquidity crunch, and the poor growth of the gold market. PGI’s strategic retail partners outperformed the general trade, returning a growth of 33% during 2014.
The growth in India is largely attributed to more sophisticated advertising and promotion as platinum becomes more ‘mainstream’. Many retailers, for example, have repositioned platinum counters to be more central in their stores. Mens’ jewellery, in the form of chains and bracelets, was particularly successful.
Platinum jewellery is the second largest consumer of platinum in the world (35%) after the autocatalyst market (36%).