Development trend and prospect of platinum and its jewelry market

Since 20 1 1, the global economic recovery has been difficult, but the demand for platinum has risen against the trend and the growth trend is stable. According to the Platinum Yearbook 20 12 published by Zhuang Xinfeng Pill, the global demand for platinum in 20 165438 was 0.8 tons, up 2% year-on-year. This is mainly due to the substantial growth of industrial demand and the steady growth of jewelry industry demand. As the world's largest consumer of platinum jewelry, China's demand for platinum jewelry increased by 2% in 20 1 1 year, reaching 52.3 tons, accounting for 2/3 of the global demand for platinum jewelry. Since September 20 1 1, the prices of gold and platinum have been upside down, which has greatly stimulated the demand of platinum jewelry manufacturers and retailers. It is predicted that this trend will continue to affect the platinum jewelry industry in China and even the whole world in 20 12, bringing a stronger growth momentum.

1.20 1 to 20 12 Overview of global platinum jewelry market supply and demand.

After 20 10, the global platinum supply of 20 1 1.6 tons increased by 7%, reaching the highest level in four years, and the platinum recovery also increased to 63.6 tons. In the second half of 20 1 1, the prices of gold and platinum were upside down for the first time, which brought new opportunities to the development of the global platinum industry, especially the platinum jewelry industry.

In the first half of 20 12, the demand of platinum jewelry manufacturers and retailers increased in most markets around the world. In the case of economic recession, the platinum sales markets in China and India remained stable. In addition, many market analysts predict that platinum prices will remain bullish for a long time as the oversupply situation in the market eases.

In view of their confidence in the platinum market, more and more manufacturers and retailers have begun to increase their investment in platinum investment, collection, gifts and other markets, and platinum is undoubtedly more attractive in the jewelry market. In 20 1 1 year, global manufacturers and retailers increased their purchases of platinum, and the market share of platinum increased significantly. Among them, the demand for platinum jewelry in China reached 52.3 tons. Although the price is higher than in previous years, the demand from China in the first half of 20 1 1 is still strong. In the second half of the year, when the price of platinum fell, and gold had a premium over platinum, the purchasing volume of China manufacturers surged. In September, when the price of platinum fell sharply, their purchasing volume reached a record level. During this period, the price advantage of platinum increased the profits of manufacturers, and partially offset the impact of rising labor costs and credit crunch, making platinum jewelry production more attractive. According to Zhuang Xinfeng Pill Platinum Yearbook 20 12, the global demand for platinum jewelry increased by 2% in 201year, reaching 77. 1 ton, mainly from China and India. The demand for platinum jewelry in Europe and America is stable. Affected by the earthquake and population trends, Japan is the only country with a slight decline in platinum demand in 20 1 1 year.

1. 1 The demand for platinum jewelry in India has set a historical record.

The purchase of platinum in Indian jewelry industry increased by 1/3, reaching 2.5 tons. With the increase of platinum sales outlets and the rising purchasing power of consumers, the demand for platinum jewelry in India has set a record. Platinum jewelry is becoming very popular and growing rapidly among the middle class from a low share. At the same time, platinum series products are actively promoted in some newly opened stores in major cities in India.

1.2 The wedding industry and high-end market supported the demand for platinum purchase in Europe and North America.

Despite the debt crisis in Europe, the platinum market has performed strongly, mainly because platinum has always occupied an important position in the wedding and luxury goods markets, which are low in price sensitivity and limited by economic factors. The expansion of overseas brand jewelry outlets and the successful marketing strategy of wedding jewelry market have increased the demand for platinum jewelry in North America to 5.8 tons.

2.20 12 current situation and prospect of platinum jewelry market in China

Thanks to the increase in the number of new retailers in China and the strong demand of consumers in second-and third-tier cities, the sales volume of platinum jewelry in China still maintained a 2% growth in 201year. From 20 1 1 to the beginning of 20 12, the platinum trading volume of Shanghai Gold Exchange (SGE) increased significantly. With the further expansion of platinum retail network, the sales of platinum jewelry in China will continue to grow in 20 12 years, and there is still huge room for development in China platinum jewelry market in the future.

2. 1 20 12 Summary of Platinum Jewelry in China

Since the beginning of 20 12, the platinum jewelry market in China has shown a healthy growth momentum. According to the survey data of International Platinum Association, thanks to the price advantage at the beginning of the year and retailers' active preparation for market opportunities, the platinum sales of platinum jewelry manufacturers in China increased by 10%~ 15% in the first half of 20/2. Major jewelry retailers in China have achieved good sales records on Valentine's Day. Sales of platinum jewelry increased by 17% and sales increased by 26%.

From the product level, in the first quarter of 20 12, both ordinary platinum jewelry and platinum inlaid jewelry maintained rapid growth. Platinum chain ornaments and platinum rings occupy the top two in the plain platinum market respectively, and the market share of platinum chain ornaments has exceeded half, and this trend will continue to expand. Rings occupy a dominant position in platinum inlaid jewelry, and the market share of platinum pendants has also increased greatly, from 10% to 15%.

With the long-term bullish trend of platinum price, the platinum jewelry market in China will face many opportunities. According to Zhuang Xinfeng Pill Platinum Yearbook 20 12, the inventory established by manufacturers and retailers decreased at the end of 20 1 1 2 and the beginning of 20 12, which means that the demand for platinum jewelry in 20 12 will be higher than that in 2012. In addition, Hong Kong jewelry brands continue to expand their retail sales in Chinese mainland, which also creates opportunities for increasing the sales of platinum jewelry. With more and more well-known brands opening stores in third-and fourth-tier cities, the market will further penetrate into low-level cities, injecting new impetus into the development of platinum jewelry market.

2.2 platinum jewelry consumer groups analysis

With the intensification of macroeconomic structural adjustment and the change of the situation, the economic growth rate of China began to decline from 20 12. However, due to the price position of platinum market and the steady growth of wedding market, the consumption of platinum jewelry will continue to rise against the trend.

20 1 1 At the end of the year, Huatong Luo Ming Company, a global authoritative consulting and investigation organization, conducted a survey on the consumption habits of platinum among 2,200 urban female consumers aged 20-40 in eight major cities of China (Beijing, Shanghai, Guangzhou, Chengdu, Shenyang, Qingdao, Changsha and Xiamen).

(1) The consumers of platinum in China are getting younger, and taste and personalization are becoming the dominant factors in consumption choice.

(2) About 1/3 of the respondents first mentioned platinum when asked about the material of precious metal jewelry.

(3) Shanghai has become the market with the highest ownership rate of platinum jewelry, and 74% of respondents in Shanghai said that they already own platinum jewelry.

(4) In second-tier cities such as Qingdao and Xiamen, the market share of platinum is increasing.

(5) Young unmarried women aged 20-30 have the strongest demand for platinum consumption.

The survey results show that boutique consumption has become a new trend of platinum jewelry consumption, emotional appeal has become a key factor to attract modern consumers to choose platinum jewelry, and second-and third-tier cities will become the main driving force for the future development of platinum market.

According to the recent survey data of the International Platinum Association, there is a new trend in purchasing channels and product demand of platinum jewelry consumers:

(1) Consumers who exceed 1/3 will consider buying jewelry through online channels. Online sales in China's jewelry market have increased several times in the past three years, and it is estimated that the proportion in 20 12 will increase to 3% (see the table below):

2007-20 12 Structure of China's Jewelry Sales Channels

Source: Tsinghua Animal Husbandry Research Center.

(2) Platinum inlay products with high technological requirements are more concerned by consumers.

The results of this survey show that online sales will become a new position in the development of platinum jewelry market, and personalized and fashionable platinum inlay product design will bring new impetus to the development of platinum jewelry market.

2.3 China platinum wedding market is optimistic.

Although the domestic economy of 20 12 is slightly weaker than last year, wedding consumption is always a rigid demand, so the favorable conditions of the wedding market have not been affected by the overall economic environment. According to the forecast of the Civil Affairs Bureau, 20 12 is still the wedding peak because of the double spring leap in the Year of the Dragon. It is estimated that the number of registered marriages will reach130,000. The prosperity of the wedding market will greatly promote the market performance of platinum jewelry in China. Therefore, grasping the wedding consumption demand in China will be an opportunity to promote the future platinum sales growth.

Known as the "metal of love", platinum is regarded as the best witness of marriage and love because of its eternal characteristics. The concept of "never fading" of platinum rings has been widely recognized by consumers, so it has become the mainstream of sales. According to the in-depth consumer surveys conducted by the International Platinum Association in eight cities in China at the end of 20 1 1 and the beginning of 20 12, about 84% of the brides-to-be want to choose platinum as the wedding ring material. It can be seen that the consumption of platinum in the wedding field will remain optimistic, thus driving the overall market sales of platinum jewelry.

Number of registered marriages in China

Data sources: statistical report on the development of civil affairs of the Ministry of Civil Affairs of China and Bride magazine.

At the "20 12 Summer Shanghai Wedding Expo", about 80,000 couples from Shanghai visited the venue, and the platinum wedding ring sales counter was the most eye-catching in the whole venue. The sales of some jewelry retailers increased by 50% over the same period of 20 1 1 during the two-day wedding fair. Matching styles became the mainstream of wedding ring sales, and 80% of the sales came from platinum matching rings. 70% of the newcomers prefer to choose a small diamond platinum ring below 10, and the diamond-encrusted platinum ring in the price range of 5000~6000 yuan is the most popular among newcomers.

At present, the main population of platinum wedding consumption is young people aged 20-35. They pursue personalized and fashionable consumption concepts and favor fashionable products. Manufacturers invest more in platinum processing, which also makes platinum jewelry occupy a favorable position in the market competition of wedding jewelry. This season, platinum wedding products are rich in variety and styles. In addition to the traditional plain platinum ring, the development of platinum diamond ring, three rings and platinum wedding suit series has been strengthened, realizing the diversified wearing needs of consumers. In particular, platinum diamond rings are favored and selected by more and more newcomers. Platinum is firmly inlaid with diamonds, setting off their sparkling colors. The perfect combination of the two has become the best witness of important occasions such as wedding ceremonies and wedding anniversaries. In addition, the unique "comfortable inner arc" technology increases the comfort of consumers' daily wear, so that couples can always feel their eternal commitment.

2.4 Platinum price analysis and forecast in the next six months

According to the forecast of Zhuang Xinfeng Pill Platinum Yearbook 20 12, the supply and demand of platinum market in 20 12 is expected to be close to the overall level of 201year. 20 1 1 After reducing the inventory, the relatively low inventory level in South Africa means that the elasticity of the whole industry to replenish platinum supply from the inventory is reduced. The interruption of basic production caused by the recent strike and shutdown makes it more likely that the supply will decline in 20 12 years, which is expected to support the price of platinum. However, the steady demand for automotive exhaust purification catalysts and the milder purchasing level in cyclical industrial applications will lead to a slight decline in total demand. According to this situation, it is estimated that the price of platinum will be between 1.450 USD and 1.750 USD/oz in the next six months, with an average of 1.600 USD.

3. Continue to make efforts to consolidate the leading position of China platinum jewelry market.

With the global economic weakness, the consumption of 20 1 1 China platinum jewelry can still maintain a steady growth trend. Thanks to the accurate grasp of market opportunities, we are constantly looking for new strategies that can benefit the whole industry, thus effectively promoting the overall development of the platinum jewelry industry. In 20 12, the international platinum association will continue to maintain good cooperative relations with major partners and establish consistent goals. At the same time, we will further ensure the strong development momentum of China platinum jewelry market and continuously consolidate the leading position of China platinum jewelry market through a series of market activities such as launching effective publicity means, upgrading design technology and improving retail environment.

3. 1 Brand-new positioning to strengthen emotional communication with consumers.

In recent years, through the large-scale market survey of consumers in many cities in China, it is found that emotional appeal has become a key factor to attract modern consumers to choose platinum jewelry. The brand value connotation of platinum itself is the inherent advantage of platinum, which can make it have more emotional connection with people, which will be the most powerful support for the development of platinum jewelry consumer market in the future. So in the promotion, we always emphasize the emotional value represented by platinum.

20 1 1 year, the international platinum association highlighted the unchangeable connotation of platinum with a brand-new promotion concept, and further explored the China market. This positioning is closely related to the emotional needs of modern female consumers with its eternal and precious characteristics, which not only embodies the significance of platinum to young women, but also embodies the symbolic significance of platinum witnessing the newlyweds' "never fading promise". The connotative value of platinum meets the needs and demands of modern young women in China. It is easy to arouse strong emotional resonance in communication and help platinum stand out among all kinds of white metals.

3.2 adjust the media strategy to attract young consumers

Young platinum jewelry consumers respond quickly, pursue individuality, emphasize emotional appeal and favor fashion design. In view of this feature, the International Platinum Association will launch a series of multimedia publicity activities to continue to support the development of the platinum jewelry market. In addition to the traditional store, TV and print media publicity, we will also increase investment in the Internet and social media, strengthen consumers' awareness of platinum's leading position through various media channels, and conduct emotional interaction with consumers in a timely manner.

20 12 China jewelry yearbook

In the wedding market, the focus of communication will be on "the promise of never fading", with the aim of letting consumers take platinum jewelry that never fades and never wears as an eternal witness of their engagement and love. In the non-wedding market, the constant value connotation of platinum is regarded as the core information of communication, which resonates with the inner feelings of modern women and urges them to express their inner characteristics with platinum jewelry. In addition, the International Platinum Association will also intensify the education and promotion of platinum knowledge to consumers in third-and fourth-tier cities, widely convey the rare, pure and eternal precious characteristics of platinum, help them get rid of misunderstandings about platinum and platinum, and strengthen their understanding of platinum's leading position in the field of white precious metals.

3.3 Expand in-depth cooperation with outstanding leading retail brands

With the rapid increase of labor costs and the increase of store rents in China, the operating costs of both manufacturers and retailers have greatly increased. At the same time, retail stores have become the main battlefield of jewelry competition. In view of this situation, the International Platinum Association will cooperate with outstanding leading retail brands in various forms to provide more added value to meet market challenges.

At the market level, the International Platinum Association will invest more resources in market research to help retailers understand consumers' demands, gain consumers' recognition, and finally realize purchases. At the industrial level, the association will strive to build a business platform that integrates the advantages of manufacturers and retailers and create greater market opportunities. At the product level, the association will provide excellent retail leading brands with higher design level and richer jewelry types. In terms of service and sales, the association will also help retailers understand the advantages and disadvantages of their stores, and make the best use of the opportunities in the current platinum market through good product display, rich product selection and well-trained sales staff. In addition, the Association will work with retailers to penetrate into wider third-and fourth-tier cities in China, open up a broader market and win a larger market share.

20 12 China jewelry yearbook

3.4 Continue to promote design and guide platinum consumption fashion.

In recent years, the platinum consumer groups in China are becoming younger, especially in first-tier cities. Therefore, the effective improvement of design level is the key point for the future consumption growth of platinum jewelry. The International Platinum Association will carefully select the backbone of platinum design, set up a team of elite platinum designers, and carry out interactive activities such as seminars, training and exchanges with brand manufacturers to enhance the jewelry design ability. For outstanding leading retail brands, the Association will focus on introducing more kinds and styles of platinum jewelry that conform to the international trend, so as to attract more young consumers in the married and unmarried markets and maintain the leading position of platinum jewelry.

summary

Although the economic growth rate of China began to slow down in 20 12, the huge consumption potential of second-and third-tier cities in China and the steady growth of emotional consumption and wedding market in China will provide strong support for the future development of platinum jewelry in China. With the increasing demand of more and more consumers for jewelry stored value, platinum products or souvenirs with preservation function will also be concerned by the market. From the perspective of long-term market development, the price of platinum will gradually pick up, the sales market of platinum will be further expanded, and the opportunities for retailers will increase day by day. It is expected that the market prospect will remain bright. At the same time, the economic recovery of developed markets and the rapid growth of emerging markets have pushed many industrial sectors into a period of capacity expansion, which has increased the demand for platinum in industrial sectors. This will also promote the sustained and steady growth of the global platinum market.