PLATINUM'S CHALLENGE
Will more entry- level options help customers pick platinum?

BY CATHERINE DAYRIT
CDAYRIT@NATIONALJEWELER.COM

LAWRENCEVILLE, N.J.- Like most couples visiting retail jewelers nationwide, brides- and grooms- to- be seeking bridal designs at Hamilton Jewelers have done their research.
 
They know to focus in on the Four C's, and even if they haven't yet been fully schooled in attributes such as purity, whiteness and durability, they know that the word "platinum"- whether it be in reference to the precious metal or any other product- implies a lofty reputation and, perhaps, an equally lofty price tag.

But Hamilton shoppers might be surprised by some of the offerings they can find these days, including platinum bridal beginning at prices just under $2,000.

Though the bridal category has been able to skirt around the brunt of the recession, bridal consumers are still doing what they can to cut costs.  As jewelry designers and retailers find ways to cater to them, the marketing engine for the platinum industry is revved up to do the same.

"There's two things that need to take place," says Huw Daniel, president of Platinum Guild International, USA (PGI-USA). "We need to get more of this product that's out there at lower price points, and we need to do a better job at selling the qualities of platinum that make it a good value opportunity."

Hamilton Jewelers, with stores in New Jersey and Florida, is one example of a retailer that has been doing both.

"We are still selling more platinum than gold designs," says Hank Siegel, company president.  "Once the client falls in love with the design, it's easy to sell them on the benefits of platinum."
 
It's also easy to sell them on a ring that's a bit more price friendly, so Hamilton Jewelers has been working with its suppliers and in-house designers to offer a greater number of options that might appeal to customers who desire platinum, but aren't willing to break their bank accounts to attain it.
 
According to findings from a Condé Nast Bridal Group survey and a PGI-USA "Consideration Study," there are plenty such customers out there.
The Condé Nast survey found that 81 percent of brides prefer platinum for their engagement ring, while the PGI-USA study revealed that those choosing platinum for their rings were most convinced by its superior quality over white gold, and those choosing white gold over platinum did so based on cost.

PLATINUM'S NEW LOOK
To make platinum designs more affordable and attainable, designers have been experimenting in different ways.
 
At Hamilton, Siegel says the retailer has modified some of its most successful designs by making new platinum pieces with lighter diamond weights.
 
Designer Scott Kay says that another method manufacturers may be taking is lowering the height of designs.  Customers will still want girth to their rings, so some of the volume might instead be shaved off the top, a trade-off that he says can limit the design.

"You need height to give it some feel, character, shape," Kay says. "The more height you give, the more cost."

Bridal manufacturer Novell Design Studio, which introduced its retail clients to entry-level platinum wedding bands about three years ago, features a dozen designs priced at a suggested retail of about $1,275, says the company's Rick Mulholland.

To achieve this price point, the designs are more basic and use less metal, Mulholland says, while other styles might also include small diamonds.

Mulholland stresses that just because a ring is lighter doesn't mean it's a lesser-quality product.

That's something that Alicia Robinson, a buyer for The Wedding Ring Shop, points out as well.

Demand for platinum, Robinson says, is alive and well at the Honolulu-based retail store, which sells a $650 Hearts on Fire solitaire mounting among its entry-level platinum designs.
While retailers sometimes advise shoppers to put the majority of their budget into a larger or higher-quality diamond, the entry-level platinum mounting allows the shopper to attain quality throughout.
 
"[The customer buying this ring] is definitely putting all their money into a higher-quality piece," Robinson says.  "Because they're spending less than $1,000 on a platinum mounting, they can spend more on the diamond."

THE PRICE DIFFERENTIAL
For over a year now, there has been a relatively small price differential between gold and platinum, which were trading at $1,088 and $1,522 per ounce, respectively, at press time.

One year ago, retailers who spoke to NATIONAL JEWELER voiced concerns about manufacturers' platinum pricing being reflective of the metals market six months earlier when platinum was still trading upwards of $2,000 rather than the current prices at the time, which were lower. But it seems prices have since stabilized. 

Robinson says today, there's about a $425 difference per ounce at the retail level.

"There's definitely still a difference between gold and platinum at the retail price point, but the gap has narrowed," she says.

While PGI-USA has been pointing this differential out and communicating the availability of lower-priced platinum options, it is also emphasizing the importance of sales training in making the platinum sale- sales which ultimately could make for higher gross dollars.

The organization is offering retailers a new online training program, "She Prefers Platinum." Available at PlatinumLearning.com, the program uses the acronym PREFERS to represent the seven top qualities of platinum: Pure, Rare, Enduring, Feels significant, Emotional, Real white, Securely.

According to Daniel, it's incumbent upon PGI and the industry to communicate platinum's core qualities.

"The number one reason a customer walks out the door without platinum is that they weren't shown platinum," he says. "We do have a level of awareness of platinum that is quite high, but that is not being met in-store by the experience."

The Consideration Study suggests that in addition to educating their sales associates, retailers must start educating customers before they even walk in the door. Retailers should include platinum learning opportunities on their Web sites, the study says, and in-store, retailers should separate platinum from other merchandise and identify it with in-case signage plus offer lower-priced product.