Taking a shine to platinum?

It's been ten years since platinum was introduced to Indian women as something they could wear around their necks or on their hands.

But have Indian women discovered platinum yet? Or is it so expensive that for most women it doesn't enter the menu of “I-wants?”

It certainly looks that way. In 2011, four tonnes were consumed in India, says the Platinum Guild International, quoting trade reports.

And gold? Over 700 tonnes.

Platinum, despite its decade-long presence here, is still not known to people in many parts of the country. It is available only in 60 major cities and 700 stores.

“Gold has been there for thousands of years,” argues Vaishali Banerjee, Country Manager - India, Platinum Guild International India, which promotes the metal. But she admits that there are ‘mental blocks' to its acceptance here. “Certain consumer barriers need to be addressed,” she says.

BrandLine tried to find out what these barriers are. Many women say it is not very showy. “How many people know it is platinum and so expensive?” asks a shopper at a jewellery store.

Nice, but not gold

Anita Mahadevan, Head of Marketing and Communication at Hyatt Regency in Chennai, says platinum is definitely a beautiful metal for the new-age woman. “It goes beautifully with diamonds, the designs are elegant, sleek and chic. But it isn't gold.”

She says it does not evoke memories of tradition, of family festivities, grand celebrations with loved ones. “My grandma's finely etched bespoke stud and images of my gorgeous mom donning it ... gold is something really very special for me.” Other women say platinum doesn't go well with typical Indian outfits.

A thin platinum necklace will surely go unnoticed if worn with a silk sari.

Pointing to a TV commercial for “platinum love bands” where the model actually wears a Western outfit, Suchitra Krishnan, a financial analyst, says platinum would go well with Western evening wear but certainly not with the traditional attire that Indian women tend to wear to weddings or other family functions.

“The problem with platinum jewellery,” she says, “is that it is so under-stated.” The typical pieces one finds at jewellery showrooms are either thin chains or rings with not much ornamentation.

Which is why, despite the elitist tag, and despite heavy promotions featuring movie stars (Aishwarya and Dhanush exchanging platinum love bands, Frieda Pinto flashing a platinum Chopard on the red carpet), platinum has still failed to cut ice.

Narayan Kumar, Director and Creative Chief of Metal Communications, says the underlying appeal of platinum has been that of rarity. The tag line in the ad for Platinum Day of Love, which shows a couple in a train station reliving their young marriage, until he suddenly goes out of sight and comes back into view, goes: “Very rare. Very you”.

The Platinum Day of Love is a concept that Platinum Guild International in India has introduced to popularise the metal. Apart from a TVC, it runs contests on Facebook and other media.

Men prefer platinum

One problem that image makers have to solve to push platinum into the high metal stakes in India is the “traditional attitudes, modern appearances” behaviour of women here. The effort is to portray platinum as being modern.

But it doesn't seem to be working. Jewellers say women do accept that platinum has its own class. “They check it out – and buy one or two pieces”, says G.R. Ananthapadmanabhan, Director, GRT Jewellers, a famous retail chain in the South.

He says more than women, it is men who are taking to platinum.

It's probably a status thing. Says Vijay Rao: “It's different, not many use it. And it's more expensive than gold – it makes me feel good to use something that not many would spend money on.”

After wristwatches, sunglasses and shoes, now platinum rings, cuff links and kadas are on men's shopping list. “The understated look of platinum and its weight appeal to men more,” says Anantapadmanabhan.

Syed Ahmed, Chairman of another jewellery retail chain, LKS Goldhouse, says the key may lie in the current price advantage of platinum over gold.

“Ten years ago, when platinum was introduced in India as jewellery, it was more than twice as expensive as gold. Now with gold price skyrocketing, the price differential is hardly anything. A gram of gold, including wastage and making charges, comes to Rs 3,000 a gram while that of platinum is Rs 3,700 a gram. And it also has resale value,” he says.

Binay Goenka, Vice-President (Sales), Kama Schachter, says the company has in the last six months sold over 4,000 pieces of platinum jewellery. Kama Schachter is an Indo-Israel joint venture company which launched its Kama branded platinum jewellery in December last year.

Goenka, who was in Chennai to launch a new range of platinum jewellery last month, said 75 stores across India stock the brand. According to him, 3-4 gm pieces – be it a diamond-studded ring, earrings or a pendant – are the fastest selling segment. And, the average selling price works out to Rs 25,000 at the retail level, he says.

Miles to go …

Banerjee of Platinum Guild says the metal has, in the last couple of years, gained momentum, thanks to aggressive marketing. “But, we know we have a long way to go,” she admits.

Platinum Guild is planning to intensify retail expansion in 2012 across tier II cities, as Banerjee says better penetration will help grow the market faster. With a large part of the business coming from new customers, there is 20 to 25 per cent growth in sales. “We see an increasing demand in the years to come,” says a hopeful Banerjee. For now, though, it's still gold that tops the metal charts.