5 Qs With Vaishali Banerjee On Indian Jewellery Market
The outbreak of Corona virus crippled businesses across categories and its impact on Indian jewellery industry has been no different. With fewer footfalls in the past year, retailers did find themselves in dire straits. But with unlock in most parts of the country now and wedding season around the corner, they are expecting to make up for the lost revenues.
Having impacted the buying patterns of consumers all over the world, the unlock phases have been instrumental in ushering demand for jewellery, particularly for platinum. From July 2020 onwards, the demand is slowly rebuilding, especially from tier 2 cities and smaller towns, which were lesser affected by the pandemic.
Elaborating more on the dynamic shifts and key trends in the sector, Vaishali Banerjee, Managing Director India, Platinum Guild International (PGI) candidly discusses the same with BW Marketing World.
Excerpts from the conversation:
Q. How has the consumer behavior changed post Covid-19, especially for the platinum jewelry segment?
From a consumer behaviour point of view, individuals were looking at ways to claim back a sense of normalcy and a means to celebrate those everyday moments that became all the more important given the gloom that had accompanied those dreaded initial months of the lockdown. Jewellery served as an instant pick-up and platinum, in particular, stood out as the metal is all about love, meaning and reaffirmation.
As per the PGI Global Study, we have found that,
In the current context, the favourable pricing of platinum, provides an incredible opportunity for the growth of platinum jewellery. In the recent Union Budget, it was heartening to see that the import duty on platinum has been reduced to 10%, which is a welcome decision made by the Government. This will boost consumer sentiment and in turn, demand, benefiting both the industry and the consumers as the market recovers in 2021. We look forward to a year of a strong recovery.
Q. How has Platinum gradually emerged as a metal of choice for the younger, more discerning and evolved consumer?
Platinum focuses on the younger consumer segment who have different needs when it comes to purchasing jewellery. They desire something meaningful and modern, which matches their sense of individuality. A universal symbol of love, rare and precious platinum, has stood the test of time to mark emotional milestones in life and relationships.
These younger consumers are more aware, well versed with international trends and make a considered choice. What they adorn is an extension of their innate value system which dictates how they want to be perceived by those who matter. They know and appreciate the intrinsic value of platinum as being modern, progressive and authentic.
When it comes to design, platinum jewellery has a differentiated philosophy based on minimalism and contemporary classic that speaks to the young. There is meaning infused in every piece of platinum jewellery - it tells a story that elicits a deep emotion from our consumers. With our three categories - Platinum Days of Love, Evara and Men of Platinum, PGI has instantly built a strong emotional connect with these consumers, who don’t want to simply fit in but seek to express their individuality through their choice of jewellery.
Platinum’s high quality, rarity and the carefully curated brand narrative have helped position platinum as the metal of choice for the younger and more discerning Indian consumers who have come to acknowledge and resonate with these coveted values of platinum.
Q. With the imitation jewellery market gaining as much popularity, how are you making sure that its business impacts are minimal?
Platinum is one of the rarest precious metals on this earth. It is 30 times more rare than gold. Mined from deep within the Earth and transformed into jewellery with a minimum of other ingredients, platinum’s lustre, strength and durability are well known. This noble metal is one of the strongest, natural materials on the planet, and also the longest-lasting. Today, consumers choose platinum jewellery as an exclusive possession bought to celebrate significant emotional milestones, they are choosing something precious, valuable and timeless. Hence, the frame of reference is not imitation jewellery which is primarily about fashion.
Q. What is your take on the latest fad of engagement rings?
As per our Global Survey conducted last year, young consumers are increasingly looking at precious jewellery to express gratitude and appreciation, add meaning and value to occasions and celebrate special relationships with their loved ones. This emotion provides an added advantage to the precious white metal to enter into a consumer’s life through our branded segment, Platinum Days of Love. Platinum jewellery is almost entirely pure, at 95% purity even when it’s set with diamonds makes platinum one of the finest metals available. The metal’s rarity, density and strength make it a preferred choice to set diamonds the world over. This is pertinent to this segment since a large part of engagement rings have diamonds in them.
Choosing platinum is a celebration of beauty, strength and authenticity. Not only do these elements factor into the construction of every piece of platinum jewellery, but they also reflect a relationship built upon the same traits.
Q. What key trends in the jewellery industry do you expect in the coming years?
The jewellery market in India is mature and till recently was on a growth trajectory, validating its strategic opportunity.
India is a predominantly young country with 70% of the total population below 40 years. This generation of millennials and GenerationZ have grown up in a more confident and open India and are more success-oriented and ambitious for a better life. They are driven by a need for self-expression and social distinction to leave a mark for themselves. Precious jewellery can address these needs through a narrative that expresses the values of this generation.
The millennials are more evolved, independent and well versed with international trends, they are generation curious always seeking the latest, and have a very strong point of view built through their entrenched digital footprints.COVID19 has been instrumental in accelerating the use of digital across categories. For precious jewellery digital medium has been to drive design discovery and metal choice. Platinum brands have adopted the digital-first strategy to engage this segment of consumers, thereby building appeal, relevance, desire, preference for platinum in their lives.
