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Jewelers Report Strong Gains in Platinum Bridal Sales

Mar 19, 2013 5:30 PM   By PGI
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Press Release: A recent sentiment survey conducted by GfK Retail and Technology USA commissioned by Platinum Guild International (PGI-USA), reports strong gains in platinum bridal jewelry sales for 2012, with 77 percent of retailers reporting same or better platinum sales compared with 2011.

Amongst PGI-USA Preferred Platinum Partners, 87 percent reported same or better sales, a 4.4 percent increase in platinum business and are expecting a 7.7 percent increase for 2013. This reflects a considerable profit opportunity for Preferred Platinum Partners as platinum bridal typically provides a gross profit dollar margin two and a half times white gold.

Entry platinum semi-mounts priced under $2,500 at retail continue to be a positive driving force for platinum sales. Seventy-three percent of jewelers who ordered entry platinum product reported that it sold through and 61 percent will be reordering.  The majority of jewelers who have purchased entry platinum feel that it had a positive effect on their overall platinum business.

In addition to sales data, the survey revealed factors contributing to platinum sales, the most frequently mentioned being the attributes of the metal. Forty-two percent of jewelers named qualities such as platinum’s unfading color, durability, high purity and popularity among consumers.  The price of platinum in correlation to gold weighed in second, with 38 percent of retailers reporting factors such as the relative price of gold and platinum, and gold’s increasing price.

Over half of the jewelers surveyed are leading the engagement ring sale with the setting first followed by the diamond, citing platinum’s unique qualities for doing so.   With squeezed margins on the diamond, the setting has become a key driver of retailer gross profits.

For the first time since this study was fielded in 2007, Preferred Partners cited knowledgeable sales associates who recommend platinum as a positive factor contributing to their sales performance.  This demonstrates the importance of conducting regular sales training to sustain proficiency in communicating the unique qualities of platinum.

Last year Day’s launched a concerted effort to increase its platinum sales. The effort carried across all parts of the company such as inventory, training, website and advertising, which the retailer concluded contributed to a 65 percent increase in  platinum sales for 2012 over prior year. The retailer looks forward to continuing a platinum training plan with PGI for 2013.

To take advantage of PGI USA’s retailer support programs please contact Kevin Reilly, the director of business development at kreilly-at-pgiglobal.com. 

The independent and small chain retailers sentiment study of platinum jewelry was a telephone survey conducted by GfK Retail and Technology USA amongst PGI Preferred Platinum Partners and other jewelers in February 2013. 


About Platinum Guild International:

Platinum Guild International is dedicated to promoting platinum and its pure, rare and eternal qualities to the consumer and the jewelry trade.  PGI has offices in each of the world's major jewelry markets, providing information, assistance and education on all aspects of platinum jewelry. For more information please visit www.platinumguild.com

 

Rapaport News is not responsible for, and does not endorse, the content of any third-party press release. This is not a Rapaport Press Release. It has been provided as additional information for our clients.

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Tags: bridal jewelry, PGI, platinum, sales
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