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The Platinum Opportunity
Huw Daniel PLATINUM DAY 2004

Global growth in platinum jewelry is outstripping growth in both total global jewelry and U.S. jewelry. Today, platinum is of undeniable importance to the retail trade. It represents five to eight billion dollars at retail, is one of the highest profit producers in store, generating a typical gross margin above those for watches and loose diamonds, and offers a respectable gross margin return on investment.

Platinum represents many sales opportunities. The purchase of a platinum engagement ring and wedding bands is often the point of entry for the consumer into a lifetime of platinum purchases. Platinum drives repeat business and provides the retailer a more loyal customer than customers for other jewelry categories. 63% of owners of platinum visit only one store before purchasing, versus 48% for all diamond jewelry purchases who shop in more than three stores before buying. Current owners are three times more interested in owning more platinum jewelry. Other platinum jewelry purchase occasions include:

Post-bridal: women coming back into the market a couple of years after their wedding. These owners of platinum bridal jewelry are coming back for their second major jewelry purchase, platinum studs, pendants, rings.

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