Top Biz News
Platinum jewelry demand is rising
By Li Fangfang (China Daily)
Updated: 2009-10-26 08:30
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Demand for platinum jewelry has been remarkably strong this year following a prosperous 2008.
Higher sales are being fueled by holiday-related jewelry sales and for bridal rings, which were helped by 2009 being considered an auspicious year for getting married and an increasing desire for platinum.
"Platinum jewelry sales in China increased by more than 400,000 ounces, compared to the same period in 2008, largely in response to lower platinum prices, but also given the reduced premium over gold," said Neville Nicolau, chief executive of Anglo Platinum, the world's largest producer of platinum.
The strong growth in platinum jewelry demand is supported by statistics published by the Shanghai Gold Exchange, which show that the total volume of platinum sold in the first half of the year was up 81 percent over the same period last year. The majority of the sales were in the jewelry category.
Opportunity for growth
"Platinum prices have held steady to date, providing an opportunity for further growth in platinum jewelry demand," said James Courage, CEO of Platinum Guild International (PGI), an organization that promotes platinum jewelry sales.
"Increased sales have been helped additionally by new store openings and manufacturers holding larger working stocks to meet increased demand," Courage said.
The second half of 2009 is expected to deliver higher levels of spending, including increases in gift jewelry and bridal jewelry purchases.
Chinese people see 2009 as an auspicious year for marriage, since the number nine implies "forever love".
It is estimated that more than 10 million couples tie the knot each year in China. According to China Wedding Registry, 10.5 million couples registered their marriage in 2008, a 10.6 percent increase in year-on-year growth.
It is estimated that marriages will see 6 percent growth to 11.5 million marriages in 2009, and that marriages will number 11.82 million in 2010.
Grace Man, director of PGI China, citing the booming wedding market and stable platinum prices, is optimistic about year-end prospects.
"These factors, together with the focus of PGI and the upbeat confidence of the industry, makes us confident of the future development of the platinum jewelry industry in China," Man said.
Since 2000, China has been the world's largest consumer market for platinum jewelry.
Sales increases were reported to be strong in both first- and second-tier cities, according to the Shanghai Gold Exchange.
Festive occasions have become major drivers of sales for consumer products, and jewelry is no exception.
A recent market survey conducted by PGI, targeting 93 sales outlets in 32 cities, showed sales of plain platinum jewelry increased by 27 percent over the May Day holiday.
Platinum also is enjoying more prestige in China.
A recent survey by the research firm Millward Brown-ACSR questioned 1,000 high-income females ages 20 to 40 in Beijing, Shanghai, Guangzhou, Chengdu and Shenyang.
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This year, PGI promoted platinum sales by inviting Chinese movie star Zhang Ziyi to be its brand ambassador in late April.
PGI also reported developing a comprehensive merchandising program targeting retailers around the country this year.
