Platinum Guild International (PGI) conducted a flash survey among 1,000 jewellery purchasers in late April and May to study Covid-19’s impact on consumers’ minds and wallets in the four key platinum jewellery markets: China, India, Japan and the United States.
Consumers in the US, China and India are willing to spend more on at least one luxury item during the pandemic, except for Japan. This is especially prominent in China, where there are 10 luxury categories, consumers are willing to spend more or the same during the crisis, much more than the other markets.
In China, the jewellery category ranks first among all 19 luxury items, followed closely by clothing/fashion and PC, tablets and smartphones.
In India, jewellery also ranks high at second on the index, after clothing and equal to PC, tablets and smartphones. The strong willingness to spend on precious jewellery is proof of the integral role it plays in the Chinese and Indian culture. For most consumers, precious jewellery has a store of value and serves as a marker of social and personal milestones in life.
Given its real value as well as the emotional connection consumers place on fine jewellery pieces, especially at a time when they are re-evaluating their personal lives in a positive way and want to show appreciation for loved ones, this category has the potential to become a net winner in luxury spending during and after the Covid-19 crisis period.
Looking at the reasons why consumers are willing to spend more after the Covid-19 crisis, the survey shows a higher willingness by consumers to purchase precious jewellery for themselves and as a gift for loved ones after the pandemic. Chinese represent the most promising market for near-term jewellery sales. Over 80% of respondents in China intend to purchase jewellery both for themselves and as gifts after Covid-19, much higher than the levels in the other three markets, slightly higher on spending for themselves. In India, 69% of consumers surveyed are willing to purchase precious jewellery for themselves post Covid-19, considerably higher than purchasing for gifting (59%). In the US and Japan, meanwhile, consumers appear more willing to spend on precious jewellery as a gift post-crisis than for themselves.
Credit: © PGI
