Platinum
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As bridal blooms, platinum has room to flower
By Catherine Dayrit
July 21, 2009
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| Platinum triple-shank engagement ring featuring a 5.50-carat round center diamond and pave diamonds from Sasha Primak; price available upon request. SashaPrimak.com |
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Las Vegas--The selling prowess of the bridal category is undisputed these days, with retail jewelers and designers overwhelmingly agreeing that recession or not, customers are still buying engagement rings and wedding bands.
But when it comes to what, exactly, is selling, there's a higher level of contention, especially as to consumers' choice of precious metals. Even though platinum prices have lowered, skirting ever closer to the price of gold, quite a few jewelers interviewed by National Jeweler said that 18-karat gold remains a big seller in bridal.
At press time, platinum was trading at just under $1,169 per ounce compared with gold's $948-per-ounce price. The differential was nearly zero six months back, when platinum was selling at $823 per ounce and gold at $822 per ounce. And the figures from both dates contrast sharply with data from May of 2008, when platinum's price was more than $1,000 higher, per-ounce, than the price of gold.
Diane Breitman of Queen of Diamonds in Calabasas, Calif., says the price differential is one that cost-conscious customers remain sensitive to. She will sometimes hold three different rings before customers: one in 14-karat white gold, another in 18-karat and the third in platinum, and oftentimes the customer will have a hard time discerning which is which.
"The difference is when you hold [platinum] in your hand, it's heavy, which is really nice," Breitman says. "But is that enough for $800 more that can make the diamond that much bigger or better?"
At Lux Bond and Green, with locations in Connecticut and Massachusetts, co-owner Marc Green says that the "bridal category is still a great category," but in terms of platinum, there has been "nothing real noticeable."
"I would say on a percentage level, it's gone up a little," he says.
Yet Green also points out an obvious plus when it comes to securing the platinum sale.
"You do make more profit dollars because platinum is more expensive, so the dollar is there," he says.
Passing over platinum?
And that means an opportunity that retail jewelers might be missing out on, according to Platinum Guild International (PGI-USA), which contends that employing a set of specific at-the-counter techniques might help retailers make higher-priced platinum sales.
Many retail jewelers agree that platinum customers often enter stores knowing what they want, having already been schooled on platinum's characteristics via a strong marketing presence in bridal and fashion magazines, and simply through the connotations of the metal's name, which, as PGI-USA President Huw Daniel puts it, "in our culture stands for the best and the highest in any category."
Daniel says that even though customers are more educated about the white metal, the platinum sale requires a skillful pitch.
"There's a lot of information out there about platinum's attributes, and I think it's up to the sales associate to reinforce that at the point of sale," he says. "If a retailer wants to maximize that opportunity, they really need to be sure that their sales associates are educated and knowledgeable about platinum."
Research from a PGI-USA mystery shopping study indicates that when sales associates show platinum to a customer as a first choice and are confident in their platinum knowledge, they almost double their chances of making a platinum sale. They also boost sell-through levels by describing platinum as "pure," positioning it as "the best" and "worth the price," and allowing customers to feel the piece and try it on. It helps, too, if pieces are clearly labeled and visible.
The sales associates at New York City's Michael C. Fina are well-versed in PGI's sales techniques, and Stefanie Hinojosa, director of sales, says roughly 70 percent of the store's bridal sales are in platinum.
"We're very much about educating our client, which is the differentiator for us," she says. "It's critical the customer understands platinum is pure, rare and eternal."
The retailer includes signage in its displays to indicate platinum designs, and its sales associates first determine the type of style the client is seeking, before moving onto the metal and turning to the diamond last, with Hinojosa explaining that the customer's ideal diamond can always be found.
If a customer is on the fence, sales associates bring up price.
"We say to them, 'Platinum is at an all-time low, so it's a prime opportunity to grab what's out there,'" Hinojosa says.
On the manufacturing side, a number of designers have also found an opportunity for themselves in platinum.
While many designers during the Las Vegas jewelry shows were introducing silver offerings or lower price-point pieces, Chad Allison debuted a new line of platinum earrings, necklaces and bracelets positioned as pieces that brides can wear on their wedding day and long after.
Debbie Son, marketing manager for the brand, says the pieces have been very aggressively priced.
"We created the collection on the more delicate side, it's just as affordable as a gold piece," she says.
Designer Erica Courtney crafts her jewelry only in 18-karat rose or yellow gold, or in platinum, saying that when it comes to white metal "our clients will only buy platinum."
In terms of bridal, 95 percent of her bridal sales are in platinum, and it's not a hard sale.
"I should have a big spiel, but all I have to do is show it to them," Courtney says.
And for designer brand Sasha Primak, National Sales Manager Joseph Del Mauro says the manufacturer has witnessed a double-digit increase in platinum orders.
Del Mauro says that even though dollars are more of a concern to consumers lately, shopping couples are still going for platinum, especially younger customers.
To cater to today's more price-conscious customer, however, the brand has been making changes to its product line. But rather than downplaying the platinum sale, it has created bridal pieces featuring a more petite look, one using smaller center stones.
"It's finally sunk in that platinum is an eternal metal, as much as the diamond is eternal," he says.
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More Platinum News
Global net jewelry demand for platinum is expected to climb by almost 80 percent this year to 2.45 million ounces, with increased interest primarily from Japan and China, according to a new report from Johnson Matthey. Read More
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