Selling Platinum Jewelry

Platinum continues to be the fastest growing segment of the fine jewelry industry today, both in America and around the world. In fact, fueled by growing consumer demand and increased availability, platinum jewelry sales in the United States have soared 700% in the past five years, according to Platinum Guild International USA.

Along with the explosion in sales of platinum is the prevalence of retailers doing the selling. Although some jewelers have carried some platinum for many years, the amount of platinum jewelry in retailers' cases has skyrocketed. Today, according to PGI, nearly 10,000 U.S. jewelry retailers are stocking and selling platinum jewelry.

The popularity of platinum among retailers is due in large part to the promotion, sales and education support efforts of PGI.

The association has also promoted platinum jewelry to the public-via advertisements in bridal magazines and expanded marketing, advertising and promotional campaigns designed to bring more customers into stores.

The platinum industry has gotten some assistance from the media as well. Awareness has been generated by fashion advertising campaigns and fashion magazines that have picked up not only on platinum jewelry, but also platinum-colored clothes, shoes, cars and even credit cards.

Customers have responded by asking their retailers for platinum, and retailers, in turn, have answered their demand by stocking more platinum jewelry, in both bridal and other categories.

Selling platinum jewelry to the customer has become a bit easier, as general awareness and education has increased and with more pieces in stores available to let the customer experience platinum.

"I'm seeing more young people coming in asking for platinum because they know that it is the best. They are spending their money," says retailer Joe DeBella, DeBella Fine Jewelry, Santa Fe, N.M.

DeBella started carrying platinum 12 years ago and builds up his selection by adding new designers.

Often, a physical comparison of platinum to white gold or silver, letting a customer feel the difference in weight and observe its appearance, is enough to win a customer over, retailers say.

"We've converted a lot of men looking at 18-karat gold wedding bands into platinum band wearers," says Cindy Shaw, gallery director of Gotthelf's Jewelers in Vail, Colo. "Once they get the feel of platinum in their hands, it's a real easy switch for the men."

Lula Halfacre of Traditional Jewelers in Newport Beach, Calif., agrees that the weight is a big selling point.

"We carry a little bit of white gold, but many of the white gold customers are turning to platinum. They like the look, and once they have the feel of it, they're sold," says Halfacre.

Educated customers also make for an easier sale, retailers say.

"There has been a lot of consumer interest in platinum, and they are not surprised at its price. Most assume that it is going to cost more," DeBella says.

Shaw sees about half of her customers with a good knowledge of platinum.

"Those that are seriously looking to purchase a piece of platinum jewelry know about it," she says.

Bridal Jewelry

Many consumers' first introduction to platinum is in bridal jewelry.

Bridal is the fastest selling category of platinum jewelry and makes up the staple of retailers' platinum offerings. PGI recommends that every retailer start with devoting at least 25% of engagement ring and wedding sets to platinum. To assist retailers in beginning a platinum line, PGI, along with jewelry manufacturer Stuller, Lafayette, La., offers a Platinum Starter Kit, which includes basic pieces of jewelry.

Platinum already occupies a 15% market share in the bridal ring category, and a 20% market share in bridal jewelry overall, which is growing annually. PGI's research of bridal consumers found that 30% to 40% of brides-to-be indicated they would prefer a platinum ring, and 97% of platinum bridal customers will consider buying platinum again.

Gotthelf's, which carried one designer's platinum jewelry in 1985 and now carries jewelry from six designers, has seen a big surge for platinum with its customers, especially in wedding rings, according to Shaw.

According to Paul Hackworth, buyer of fine jewelry for Nordstrom, Seattle, close to half of the retailer's platinum jewelry is engagement rings and wedding bands.

Overall, Nordstrom's platinum business grew 30% over last year, says Hackworth, who has been purchasing platinum seriously for the past five years and plans to continue expanding the platinum line in both bridal and other jewelry.

Beyond Bridal

After testing the market and enjoying success with platinum engagement rings and wedding bands, retailers are venturing beyond the beginner's platinum bridal jewelry display to carry fashion and designer pieces.

One likely reason retailers are exploring their platinum options is the diverse array and price range of pieces available.

In fact, last year was a record year for U.S. platinum manufacturing, up over 75% from the previous year, according to PGI. There weren't many designers working with platinum 10 years ago, but today, buyers find that they have an easier time choosing pieces that are in their customers' taste and price point.

"You can really get into high price points quickly, so it's important to keep stone weights down as much as possible without compromising the integrity of your selection," says Nordstrom's Hackworth.

Higher prices of platinum can prevent the purchase of large pieces of platinum jewelry by some retailers and consumers. The natural translations have been smaller pieces with fewer stones to serve customers in their price range.

"Our customers are asking for platinum more and more, and we stock the basics," says Dave Mrizek, owner of David Jeffrey Jewelers, Sacramento, Calif. "We haven't gotten into more fashion pieces because of the cost factor. We can order pieces by request, but we don't stock them."

Although the platinum stock of Bennion Jewelers, Salt Lake City, is mainly engagement rings, the retailer is expanding its offerings with both simple and designer pieces. Bill Bennion, principal, recently added more platinum chains and bracelets to the displays. Last year was the first effort in stocking platinum jewelry other than bridal, and Bennion reports that the jewelry sold very well.

"It's a no-brainer to stock wedding jewelry," Bennion says. "We are going to see the additional pieces sell. I wouldn't be surprised if we expanded our line further."

Retailers report that rings and small platinum earrings are among the best sellers. Hinged hoop earrings are very popular, especially with a few stones.

Platinum Prestige

Jewelers who carry platinum report that stocking platinum jewelry adds prestige to their businesses. Because platinum is not sold in every retail jewelry store, many jewelers have created a niche for themselves by offering platinum products.

"Carrying platinum distinguishes you from other jewelers because you are carrying quality pieces of jewelry, something that is visible and very well-advertised. A jeweler that carries platinum is giving its customer more variety," says Halfacre.

"Not a lot of retailers stock platinum, and it gives us a certain prestige to say we have it, rather than we can get it," says Bennion.

Retailers often advertise that they carry a designer's line of platinum creations and use PGI logos in their printed advertisements as well as in store windows.

Displaying Platinum

Depending on how much platinum jewelry is stocked and the number of designers carried, retailers may display jewelry by designer, mix pieces in with gold jewelry or display platinum in a separate case.

"Retailers have to make a commitment if they are going to carry platinum-you need to devote at least one case to it," says Joe Solis, owner of Luxor Jewelry, San Antonio, who primarily carries platinum bridal jewelry.

Traditional Jewelers, which has carried platinum since its opening, displays its high-end platinum bridal collections by designer, and other pieces, like chains, earrings and bracelets with similar styles of jewelry.

Investment in platinum is a sure thing, say many retailers.

Most agree that the resurgence of platinum is not a fad that will go away any time soon. More of a concern to them is the buying habits of their customers, and the expense of stocking the pieces.

The cost of carrying a large platinum selection is a deterrent for some independent retailers.

"I don't think the platinum trend is a flash in the pan, but because of the cost, smaller retailers are sticking their necks out a little when they purchase it," says Bennion.

Some reluctant retailers are waiting for the platinum market to grow even more before making the commitment to stock jewelry.

"There is very little jewelry from middle-market manufacturers. They cater to more high-end retailers, and smaller, independent jewelers are afraid to make the jump [to carry much platinum]. We don't want to get stuck with expensive pieces," says Solis.

Whether retailers choose to carry designer platinum pieces, bridal jewelry or basic chains and earrings, the industry prediction is that platinum will continue to be profitable.

"It's not going away. I'm already looking at 1999 to really continue expanding our platinum and jewelry above and beyond engagement rings. As long as the prices stay reasonable, the collection will do well," Hackworth says.