Affected by the global economic situation, demand and sales volumes for precious-metal jewelry in various regions have been struggling in a difficult predicament over the past few years. Even the Chinese mainland market, which has long led global demand for platinum jewelry, has faced considerable pressure. To attract more resources and boost demand for platinum jewelry, Huw Daniel, Global CEO of the Platinum Guild International (PGI), has been rolling out several strategic initiatives across different platinum markets—including relocating the global headquarters from London, UK, to Hong Kong. Recently, he granted an exclusive interview to Asian Jewellery, in which he analyzed the current state of the global platinum jewelry market and outlined the association’s key objectives for 2018.

According to a survey report conducted by the independent research firm SFA (Oxford) Ltd for the World Platinum Investment Council (WPIC), global demand for platinum jewelry is expected to rise by 3% in 2018, reaching approximately 2.65 million ounces—a first increase since 2014. Tang Haocheng explained that the official establishment of PGI Global Headquarters, the world’s largest platinum jewelry manufacturer, in Hong Kong in 2015 has brought the association closer to the Asian market. This move not only helps the team deepen its understanding of the Asia-Pacific market but also enables stakeholders associated with the association and the platinum industry to gain a better grasp of the Asian market and local platinum jewelry producers within the region.

PGI’s global headquarters officially established itself in Hong Kong in July 2015. Tang Haocheng explained that this move has brought the association closer to the Asian market, not only helping the team deepen its understanding of the Asia-Pacific market but also enabling stakeholders associated with the association and Platinum to gain a better grasp of the Asian market and local platinum jewelry manufacturers within the region.

Tang Haocheng happily noted that support from South African miners for the association had increased from three major mining companies to six in 2018. “The return on investment from the jewelry industry has reached as high as $57 per ounce, and South African miners continue to show strong support for the jewelry sector. Overall demand for platinum from the jewelry industry ranks second only to that from the automotive industry.”

Global Strategy

Targeted marketing strategies laid the foundation for Tang Haocheng’s efforts to further expand platinum jewelry sales in major markets in 2018. “The association will leverage various targeted strategies to identify and seize business opportunities in the platinum jewelry sector, achieving sustainable growth in both ounces sold and revenue, thereby adding value to the industry. For the industry, this means increased opportunities to reach new customers, helping companies boost their profitability, and providing consumers with innovative platinum jewelry products and new purchasing occasions—including a series of market activities across key regions.”

2018 Promotion Highlights

China: Strengthening Marketing Activities During and After Wedding Events

Japan: A market targeting customers aged 60 and above; expanding the platinum jewelry export program.

India: Leveraging Two Major Market Initiatives to Drive Growth in the Wedding-Related and Men’s Markets

United States: Promoting platinum as a stronger material for ring settings; boosting imports of platinum jewelry.

China

The downward trend in demand for platinum jewelry in mainland China has gradually bottomed out, according to Tang Haocheng. He noted that China’s wedding market is creating significant potential for platinum jewelry. He pointed out that consumer demands for jewelry products are on the rise, and plain, one-size-fits-all platinum jewelry can no longer meet consumers’ increasingly sophisticated needs. Categories with substantial growth potential include plain platinum jewelry and platinum wedding jewelry set with gemstones. Thanks to the association’s proactive efforts, demand for platinum wedding jewelry among both men and women in mainland China has narrowed considerably. Second- and third-tier cities have emerged as the fastest-growing regions, with growth rates reaching 106% and 86%, respectively.

The growth rate of platinum-inlaid jewelry reached 13%, accounting for 35% of the overall market, thereby increasing the local market share of such jewelry. However, the overall market share remains at only 19%, indicating that there is still substantial room for growth in the development of platinum-inlaid jewelry in mainland China.

As consumption habits on the Chinese mainland become increasingly sophisticated and continue to evolve, manufacturers are launching more branded and series-based platinum jewelry items to meet growing demand. Retailers are also shifting from pricing by weight to setting fixed prices for individual items, which helps expand profit margins and enables greater investment in styles, designs, and promotional activities—thereby supplying the market with higher-quality products that better satisfy consumers’ evolving needs.

Tang Haocheng stated that last year, the association launched a campaign in mainland China featuring celebrity Yang Yang as its spokesperson, which received a positive market response. Additionally, the association held a specialized seminar on platinum jewelry manufacturing techniques in Shenzhen, a major hub for jewelry processing, helping industry professionals deepen their knowledge of platinum materials. These efforts have directly boosted the acceptance and market influence of platinum jewelry in mainland China.

Japan

The association entered the Japanese market in 1975, and today Japan has become one of the most mature platinum markets globally. By value, platinum jewelry accounts for more than half of the local market share, and by volume, it represents nearly 20%. Japan also boasts the highest per capita ownership of platinum jewelry worldwide. However, Tang Haocheng frankly admitted that, influenced by various external factors, demand for platinum jewelry in Japan is currently on a downward trend. Despite this, Japanese-made platinum jewelry remains internationally renowned for its exceptional design and craftsmanship. To capitalize on this reputation, the association recently teamed up with several Japanese jewelry companies to launch a novel design featuring Japanese-made platinum chains. This unique collection of platinum jewelry is being promoted to local consumers through U.S. retailers and has already enjoyed tremendous success in the U.S. market—a first for the association in terms of jewelry production, marketing, and sales initiatives.

Other projects launched in Japan include a platinum jewelry promotion campaign targeting the mature consumer segment aged 60 and above, as well as mass-market products designed for younger consumers.

“The association will identify and seize platinum jewelry business opportunities through a variety of targeted strategies, achieving sustainable growth in both ounces and revenue and adding value to the industry. For the industry, this means more opportunities to reach new customers, helping businesses boost their profits, and offering consumers innovative platinum jewelry products and purchasing experiences—including numerous marketing initiatives across key markets,” said Tang Haocheng, Global CEO of the World Platinum Investment Council.

India

After a highly challenging 2016, the Indian platinum jewelry market finally rebounded at the end of 2017. Platinum jewelry emerged as the best-performing jewelry category in 2017, posting a growth rate of 25%, following an 11% increase in 2016. Many jewelers have noted higher profit margins when promoting platinum jewelry, and the platinum collection is better positioned to meet the growing demand from younger consumers for more fashionable jewelry.

Tang Haocheng introduced that two major projects—titled “Platinum Days of Love” and “PlatinumEvara”—launched by the association will be PGI’s key focus for next year’s market in India. Both series are specifically targeted at India’s wedding jewelry market, which places great emphasis on family and tradition.

He explained, “Platinum Days of Love is a market initiative centered around platinum wedding rings.” In Indian tradition, marriages have traditionally been arranged by families. In the past, jewelry gifts during wedding ceremonies were primarily intended to convey wealth, often lacking emotional connection. However, in contemporary India, as couples prepare for their weddings and celebrations, the genuine love shared between the bride and groom—and the emotional bonds forged between both families—are increasingly valued. As a result, the significance and image of platinum wedding jewelry as a symbol of love are gradually gaining traction across India.

Traditionally, Indian wedding customs have been deeply influenced by the time-honored culture of gold. PGI’s platinum collection, “PlatinumEvara,” has introduced a new tradition of blessings between the newlyweds and their mothers. With its affordable price and stylish design, these platinum wedding pieces remain suitable for wear long after the celebration, making them a significant advantage of the collection. As the millennial consumer demographic grows in importance—and given that platinum jewelry can bring higher profits to Indian jewelers—Tang Haocheng is highly confident in the future development of platinum jewelry in the local market.

United States

The U.S. platinum jewelry market has experienced five consecutive years of growth, and Tang Haocheng believes that the upward momentum in local demand for platinum jewelry is likely to continue. To further boost the growth of the U.S. platinum market, the association recently conducted a thorough market survey locally and found that diamond-set rings account for a significant share of the local platinum jewelry market. The study also revealed that 73% of consumers are willing to pay a premium for platinum settings to ensure that diamonds are securely set in the rings. Tang Haocheng calculated that simply replacing the prongs on diamond-set rings with stronger platinum settings would increase platinum demand by as much as 150,000 ounces—equivalent to nearly half of the total U.S. demand for platinum jewelry. He emphasized that by stepping up promotional efforts aimed at retailers in this area, overall U.S. demand for platinum could be significantly boosted, enabling retailers to greatly expand their profit margins. “In recent years, the U.S. has faced the retail challenge of fewer and fewer people visiting jewelry stores. If sales staff can leverage the sale of more platinum ring settings to raise the average selling price of products, it could substantially improve companies’ overall sales performance.”

“Investment returns from the jewelry industry have reached as high as $57 per ounce, and South African miners remain highly supportive of the jewelry sector. Overall demand for platinum from the jewelry industry ranks second only to that from the automotive industry,” said Tang Haocheng, Global CEO of the International Platinum Association.