Platinum’s New Relationship Thrust In India

SPOTLIGHT

SOlITaIRe INTeRNaTIONal l NOVEMbEr 200946

A fter years of finding favour mostly in southern India, platinum is on the verge of gaining countrywide acceptance. An aggressive advertising campaign for 2009-10 by the Platinum Guild India (PGI), which was launched in the run-up to Diwali, has generated a lot of interest among consumers across the country.

The new Platinum Day of Love campaign targets the relationship

segment and promotes Platinum Love Bands, which cost upwards of Rs.18,800 ($400). It introduces an element of emotional bonding between a man and a woman – similar to what De Beers did for diamonds.

Thus far, the PGI had been running generic campaigns that targeted the self purchase segment. These promotions, which continue to run parallelly, emphasise the rare

The metal has previously been promoted as rare and therefore worth having. Now, however, platinum is being promoted as a metal that could define the relationships between men and women. Shanoo Bijlani and Regan Luis report.

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and precious qualities of the metal. The new campaign has connected the two themes and has been deemed a success by a majority of the platinum jewellery retailers that Solitaire spoke to.

Vimal Bhai Jetha, proprietor, Jetha Bhai Zaveri Jewellers, New Delhi, says, “The PGI campaign has been very effective as the message about platinum is finally reaching the end consumer. It has already brought in results and we are seeing a rise in the number of enquiries and a 60 per cent increase in new walk-ins, who come specially to buy platinum jewellery. In these two months, our platinum jewellery sales have gone up by between 25 and 30 per cent.

“The concept of promoting ‘love bands’ is working very well because of the emotional connect. Platinum now is pegged as rare, and it is considered as the ‘ultimate’ in metals used for jewellery.” Jetha adds that earrings and rings are selling well, and popular price points are between Rs.15,000 and Rs.50,000 ($320 - $1,060).

The PGI campaign has introduced over 600 new designs consisting of earrings, pendants, rings, necklaces and men’s bracelets. Interestingly, retailers are seeing considerable demand for men’s accessories like cuff links and tie pins and jewellery items like chains and rings.

Murtaza Motiwala, owner of A. Motiwala Jewellers of Mumbai, is getting a number of new enquiries for men’s accessories in platinum. This is a positive spin-off of the campaign, he notes. “I have a strong feeling that another advertising campaign, which targets only men, may see a surge in sales in this segment. This is another avenue that the PGI can tap,” he remarks.

Hemant Chhabria, head of operations, Diti Jewellery, the retail arm of Shrenuj & Co. Ltd., agrees. “Men love to wear platinum jewellery, especially classy bands with a single diamond. Platinum is preferred by the corporate types as it goes well with formal attire. Platinum also retains its sheen, while gold gets a little dull after sometime. It is only a matter of time before platinum becomes a much accepted metal, like gold,” he notes.

In India, consumers view gold as a storehouse of value and as an instant source of liquidity. Consumers don’t, however, feel the same way about platinum, mainly because they are unsure about its resale value.

“At Diti, we buy back our jewellery at 70 per cent of its value. Customers can also exchange jewellery within a month of its purchase, at no extra cost.

In India, consumers view gold as a storehouse of value and as an instant source of liquidity. Consumers don’t, however, feel the same way about platinum, mainly because they are unsure about its resale value

Solitaire iNterNatioNal l november 2009 47

SPotLIGHT

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However, after a month, we exchange jewellery at 90 per cent of its value,” Chhabria reveals, adding that ever since the campaign was launched, Diti’s walk-ins and sales conversions have increased by 30- to 35 per cent.

The campaign has enabled retailers to educate their old and new customers about the metal and the various buy-back schemes. Chetan Vastani, partner at Dass Jewellers of Nagpur says, “Every day since the launch of the campaign, we have been getting up to four customers daily to enquire about or buy platinum jewellery. Sales are average, but what is important is that the customer is getting to know about an alternative to gold. Rings between Rs.10,000 and Rs.50,000 ($210 - $1,060) are selling well.”

Motiwala also agrees with Vastani, noting that customers who have never shopped with him before are asking for platinum jewellery. “Conversions from gold to platinum are taking place in small but significant numbers. We are selling platinum items in the Rs.15,000 to Rs.35,000 ($320 - $750) price range,” Motiwala states.

Platinum is going through a stage that diamonds went through five years ago in India. What the Diamond Trading Company did for diamonds then in this market, the PGI is doing for platinum today. Currently, gold and platinum prices are almost at par and retailers believe that it is just a matter of time before consumers see the white metal as another lucrative investment option.

Platinum is going through a stage that diamonds went through five years ago in India. What the Diamond Trading Company did for diamonds then in this market, the PGI is doing for platinum today

SPOTLIGHT

SOliTaire iNTerNaTiONal l NOVEMbEr 200948

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