Indians, known for their love towards precious metals especially Gold. Since the era of kingdoms, it remained the source of prosperity and social status. However, with the recent price fluctuations in the gold indicate that the jewellery market in India is becoming price conscious and the preferences for gold is shifting towards other precious metals such as platinum.
The main feature of platinum is, it is corrosion resistant and more precious than gold. Designers choose platinum most, to stud diamonds and colored stone because of its strength and durability to design rings, pendants, necklace, bangles, chains, cufflinks and many other products. Traditionally the price of platinum remained way ahead of gold, however recently with the prices of gold heading north side, the price difference between two metals squeezed resulting in increased preference for platinum jewellery in India. However, in India, the market for platinum is very niche in overall Gems & Jewellery segment and remained just a decade old phenomena.
In terms of value, according to IKON Marketing Consultant’s latest market insight, “The Indian Platinum Jewellery Market:Young India Affair”, the platinum jewellery market in India is worth around Rs 1900 Cr and growing at a healthy double digit CAGR of 45%. With the rise of urbanization, changing demographics and growth of modernized retailing paved the way for increased appetite for platinum jewellery in India. However, the market remains more of urban centric and metro cities are ruling the market by occupying almost 32% of the total market. As per estimates, almost 5.2 tonnes of platinum consumed for manufacturing jewellery during last fiscal 2013-14, which was highest ever since the launch of platinum jewellery in India. However, though nascent domestic market, at the global front India remained fifth largest consumer of platinum jewellery after China, Japan, Europe and US.
The market is dominated by branded player’s among which the major players are TBZ, Tanishq, ORRA, Diti Jewellers, Kalyan Jewellers, Malabar gold, Joy Alukkas, Prince Jewellery, Bhima Jewellers, Lagu Bandhu Motiwale, GRT Jewellers. There are approx 455 Platinum Guild International (a body promoting platinum jewellery) authorised jewellers selling platinum jewellery in India. Whereas unauthorized manufacturers are small to midsized jewellers catering to region specific market who manufacture and sell platinum jewellery to small retailers. Among these, Dishaa Gold and Platinum, SS Platinum, Goldiam International Limited, Fine Platinum India Limited, N Gopaldas etc are the leading manufacturers.
In India Platinum Jewellery remained young India affair, representing the young Indians choice aging 20-29 years belongs to A & B class living in urban areas. According to IKON’s findings, more than 60% of the platinum jewellery buyers prefer to buy platinum jewellery on their life turning events such as engagements and weddings. As most of the precious metal’s jewellery remains more of women centric so as the case with platinum jewellery, however there is an emerging niche of platinum jewellery for male segment which is growing at a faster pace among other emerging segments.
The future of platinum jewellery in India looks promising due to growing domestic demand; however, the external factors may hamper the market growth in future but with temporary effect. Considering the optimistic growth scenario for platinum jewellery market in India, it is going to make its place noticeable in Indian market for precious metals in years to come. The retail expansion will speed up the market growth coupled with rising young population of India and the disposable income.
Related Report: The Indian Platinum Jewellery Market:Young India Affair