In 2023, marked by economic revitalization and consumption recovery, platinum jewellery, a pivotal component of the fashion industry, finds itself at a historical turning point amidst both opportunities and challenges.
Multiple positive signals are seen in the Chinese market, from the consumer side to the industry side. WWD China, in collaboration with PGI China, jointly presents the “2023 Platinum Jewellery Insight Report” (hereinafter referred to as the “Insight Report”), decoding the prospects and challenges facing the platinum jewellery industry. It highlights the opportunities hidden in the evolving consumer market and emerging industry dynamics, uncovering potential breakthroughs for platinum and the ripple effects in the fashion and luxury industry as a whole.
Since 2000, China has become the world’s largest consumption market for platinum jewellery. The use of famous spokespersons has deeply embedded the attributes of purity, rarity and eternity associated with platinum, forming a widespread recognition of “Look for the Pt mark when choosing platinum jewellery.” Simultaneously, the introduction of the “pair rings” concept has captured countless moments of mutual commitment between couples through the platinum pair ring exchange ceremony.
As consumer demand shifts with the emergence of a new generation, the traditional jewellery industry has faced dual pressure from fashion accessories and high jewellery.
For the industry, moving forward under pressure is a given fact. Yet, the looming question is how to leverage advantages, maintain resilience and regain the spotlight amid economic transitions and structural reconstruction.
The “Insight Report” outlines the unique qualities of platinum that allow it to navigate through various economic cycles and bring about a resurgence.
People, Product, and Place, A Comprehensive Evolution
Despite the current global economic downturn, the Chinese jewellery market, including platinum jewellery, is undergoing a comprehensive evolution.
First and foremost is the diversification of consumer groups. The primary driving force is rapidly shifting towards a younger demographic.
Weddings continue to generate strong demand for jewellery. Despite the evolving views on marriage and parenthood among the younger generation, platinum remains robust in the wedding market. According to the “Insight Report”, among brides who got married in 2022, 54 percent acquired platinum wedding jewellery. Despite the growing popularity of pure gold, platinum continued to be the preferred metal for wedding bands. As a symbol of eternal love, platinum is frequently chosen to express affection beyond the wedding ceremony, serving as a witness to the love journey of young couples and creating an atmosphere in the routine of married life.
In the meantime, driven by women’s self-pleasing needs, platinum, with its unparalleled resilience and texture, is shared beautifully, whether through the independent expression of young ladies or the self-appreciation of mature women. Formerly exclusive to gift-giving from males, platinum jewellery has now seen an increasing trend for male consumers who are constantly refining their aesthetic sense for mixing and matching or showcasing their social status. This shift has transformed men’s self-purchase into a blue ocean for the growth of the platinum market.
With the increasing desire for self-expression among young consumers and the pursuit of innovative craftsmanship and superior quality by high-end consumer groups, the transformation in the jewellery industry is increasingly defined by personalization and high-end customization.
Behind the vibrant consumer demand is a more proactive evolution on the industry side.
On one hand, in the new market landscape, leading brands are focusing on product upgrades and diverse wearing experiences, resulting in an increasingly rich variety of jewellery types. On the other hand, the rapid growth of the digital economy is accelerating the iteration of online marketing and sales. Social platforms like Xiaohongshu (RED) are leveraging influencers to promote mix-and-match experiences, while live streaming platforms like Douyin efficiently convert viewers into customers. This well-developed online ecosystem has notably increased the proportion of online purchases for consumers.
Live streaming has also enabled many traditional small wholesale shops to reach consumers directly and the “Shui Bei model” of integrating wholesale and retail has spread out. Simultaneously, the active engagement and promotion of innovative retail formats such as multi-label stores, along with the exploration of many other channels catering to niche consumer demands, are diversifying the offline retail market. The trend is contributing to a more pronounced polarization in the market.
Certainty Amidst Uncertainty
In a market full of numerous changes, how does one find a certain direction in an era filled with uncertainty?
Generation Z, with its pursuit of individuality, remains the primary market force, according to the “Insight Report.”
Currently, various entrants, ranging from high-end jewellery to accessories lines of luxury brands, especially gain favor among this demographic when they carry strong individualistic concepts and tones from founders or designers. Simultaneously, as “natives” of the digital age, the Alpha generation has also emerged as potential consumers of platinum. This group, inherently close to technology and the internet, has a particular fondness for cyber aesthetics and a futuristic sense, making platinum, with its high reflectivity and strong malleability, an ideal choice.
Furthermore, within China’s expanding consumer market of 400 million middle-income earners, an increasing number of consumers are seeking exquisite, elegant and subtly luxurious high jewellery. Both this group and consumers prioritizing sentimental value represent important potential customer bases for platinum jewellery.
Beyond these three potential segments, branded collections play a crucial role in driving the growth of the jewellery industry. Branded collections are known for their captivating storytelling, innovative designs and incorporation of new technologies. They not only resonate emotionally with consumers but also bring faster turnover and higher profits to the supply chain.
Where is the momentum to go with the flow?
Success follows the natural course but also requires seizing the opportunities that arise. Currently, China’s industrial transformation is heading into a “deep water zone,” and the platinum jewellery industry is no exception. Amid hidden currents, whether at the industry, companies, brands or individual level, everyone should “move along with the gears of destiny.” In the “Insight Report,” PGI China and WWD China have outlined four major opportunities for the platinum industry in the next five years: building an ecosystem for the industry, promoting sustainable development, cross-brand collaborations and enabling differentiated development.
In this era where the ecosystem is crucial, the fundamental way to achieve resilient growth is the collaborative promotion of communication and integration, facilitating the ecological circle that supports the upgrading of the industry chain.
In recent years, the fashion industry and platinum jewellery have been mutually influential, with an increasing number of fashion brands and designers extending their creative touch to platinum metal, exploring more potential for platinum jewellery. Moreover, the extension of the platinum ecosystem is expanding, involving designers, multi-label stores, celebrities, key opinion leaders (KOLs), key opinion consumers (KOCs), exhibitions, industry events and more. The advantages of platinum have more opportunities to be recognized by the market and a new ecosystem centered around platinum is gradually forming and evolving. Each emerging force has the potential to become an industry dark horse through ecological interconnection.
“Sustainable development has become an undisputable ‘golden track,’ and under China’s 30/60 carbon goals, every industry is undergoing a transformation process reshaped by ESG governance and sustainable development principles. Distinguished from other precious metals, Platinum’s inherent ‘green genes’ and outstanding contributions to environmental governance are bound to attract more market attention.”
Co-branding, exemplified by IP and brand partnerships, consistently demonstrates their commercial value where the collective impact surpasses individual contributions, as validated by the consumer market. The marketing approach of linking IP with fans strengthens brand awareness and will bring new opportunities to the platinum jewellery industry in terms of value and cultural significance.
Continuous innovation, empowering platinum products and businesses, establishes differentiation advantages as fundamental. It is crucial to deeply cultivate various platforms such as RED and Douyin and implement differentiated strategies for omnichannel customer acquisition and refined operations. These efforts are key to achieving sustainable growth in the platinum jewellery industry.
In 2024, the platinum jewellery industry, poised for a breakthrough, may reach a turning point. Pui P. Poon, Platinum Guild International, managing director, China stated: “As a precious metal that can convey profound meanings, platinum can embody emotional expressions, making it crucial in the current uncertain times and the future.”
The consumer market is currently witnessing a remarkable increase in diverse aesthetics, emotional consumption and the emergence of the romantic economy. These factors have created several favorable conditions, pointing directly toward the potential resurgence of platinum. At this juncture, for the industry, being an opportunist, gaining insights and leveraging differential advantages are keys to navigating the fast lane of development.
Founded in 1975, Platinum Guild International (PGI®) is committed to promoting platinum jewellery on a global scale, while also providing technical, sales and consulting services to all walks of life, including manufacturers, designers, retailers and consumers. In China, the Platinum Guild International (PGI®) is committed to cultivating and guiding Chinese consumers’ love for platinum jewellery, providing all-round support for the promotion of platinum jewellery in the Chinese market and has achieved great results. Since 2000, China has become the largest market for platinum jewellery consumption in the world. Through Platinum Guild International’s membership, platinum is represented in the Responsible Jewellery Council (RJC). RJC is the leading standards authority in the global watch and jewellery industry and works with members worldwide to create a sustainable supply chain.
