Platinum Jewelry Shows Remarkable Growth In USA; Reflects Strong Jewelry Market Overall
December 08, 2021 (0 comments)
New York, NY—The U.S. jewelry industry has continued its upward trajectory, and platinum also is enjoying hefty sales growth. Despite the challenges since the start of the pandemic, U.S. jewelers have used the time productively to learn, re-tool, re-stock and re-engage with their customers, leading to a banner year for many in the industry and strong positive sentiment in the trade among both independent retailers and jewelry manufacturers, as well as chains.
These were the key findings of the Platinum Guild International’s third-quarter business report, released Tuesday. The report highlights many positive indicators for the industry, both in terms of platinum and in terms of jewelry in general. Here are some highlights:
- Balance sheets are strong since [retailers] have reduced aged inventories during the pandemic shutdown and are more engaged with consumers through an upgraded omnichannel strategy.
- The most common challenge now is in retaining and attracting workers, especially experienced bench jewelers.
- Signet’s same-store sales in North America increased by 97.6% year-on-year in the second quarter of its fiscal year, and 40.2% over 2019. Both online and offline businesses delivered robust recovery, with e-commerce sales up 25.8% year-on-year and brick- and-mortar same-store sales up 130.4%.
- LVMH posted a strong Q3 of its fiscal year and saw sustained revenue growth in the United States with quarterly revenue in the watches and jewelry segment up 18% year-on-year and 1% compared with pre-pandemic levels. Tiffany & Co. also put on a “remarkable performance,” since its acquisition, particularly in the United States.
- Platinum jewelry unit sales from PGI USA’s primary business development partners grew for the fifth consecutive quarter, by nearly 20%. All of them expect strong year-end results not only compared to 2020, but 2019 as well.
- PGI USA’s gemstone jewelry brand partner reported that the first nine months of 2021 nearly matched the full year 2020 sales and they’ve continued to expand their distribution to the major chains, department stores and independent retailers.
- PGI’s consumer bridal brand partner reported its PGI-supported retail partner program anticipated 120 retailers to participate but delivered 200+ partners.
- Platinum ounces grew over 30% as retailers started building stock for the upcoming holiday season. Sales in platinum crowns increased over 20% year-on-year in Q3, showing a stronger appeal of platinum for diamond and gemstone jewelry.
- Growth in U.S. gold jewelry demand slowed in Q3, but it’s still the highest Q3 since 2009, supported by continued economic recovery and the vaccination program. More yellow gold has entered the bridal category, diverting from white gold shares, although still contributing a small share.
- Sustainability is now a leading factor in how consumers choose diamonds. De Beers research found that the larger and more valuable the diamond, and the more associated it is to a meaningful moment in life, the more consumers consider sustainability.
- Almost 60% of respondents to De Beers’ survey preferred natural diamonds produced in a socially and environmentally responsible way, and 85% are willing to pay a premium over other kinds of diamonds.
- De Beers Forevermark and celebrity and bridal stylist Micaela Erlanger launched the Forevermark x Micaela bridal collection, exclusively set in platinum and comprised of seven engagement ring styles and four wedding band styles.
Related: Platinum Jewelry Demand Continues To Grow