Dhanteras, Diwali Witness Increase in Sales
Jewellery sales surged up to 25-30 per cent compared to previous Dhanteras and Diwali. The exemption of the sector from the purview of Prevention of Money Laundering Act (PMLA) seems have brought a positive vibe in the industry which has been coping with the twin impact of Demonetization and Goods and Service Tax (GST).
Retailers and Industry Experts observed Gold and Jewellery sales go up post downfall of 40 to 50 per cent after the PMLA provisions for purchase of jewellery above `50,000 were made mandatory. “People are no more scared to buy jewellery. We did a good business on Dhanteras. It escalated by 20 per cent this festive season, mainly because the Prevention of Money Laundering Act (PMLA) was removed,” Kumar Jain from Gold Bullion Association told ANI.
Saurabh Gadgil – Chairman & Managing Director, PNG Jewellers and Director, Indian Bullion Jewellers Association said, “This year’s Dhanteras was extremely positive. The market sentiment seemed positive for both investors and buyers, it feels the extension of PMLA from INR 50,000 to INR 2,00,000 in the case of jewellery purchases have fostered positive sentiment.” Both rural and urban customers have bought bullions, coins, gold and diamond jewellery in full swing. There was a vivid indication of wedding jewellery buying this season; also young customers were buying silver coins and silver idols. “It seems that the confidence of the customers is back, introduction of policies like the seventh pay commission has helped too. Hence, we witnessed overall business go up by 25 to 30 per cent compared to last year.”
“We were waiting for Dhanteras with a watchful excitement and also a bit of nervousness as the gold industry has seen a tremendous downfall of 40 per cent since last year,” said Tanya Rastogi, Director, Lala Jugal Kishore Jewellers. The demand had slipped down further in September because of the GST roll-out and PMLA act. “The gold buying demand in that phase had pent up and luckily for us, the government also brought in a correction in policies just around Dhanteras, because of this, we have seen a good surge of about 25-30 per cent in sales since last year. The walk-ins were constant indicating a promising season,” stated Rastogi.
Experts have also observed a shift in the consumer buying patterns especially during the auspicious occasion of Dhanteras and Diwali. Affordable light weighted jewellery was in high demand in the market. Sunay Gandhi – CEO, Pristine Fire and Partner, Vishal Diamonds said, “We expect good sales this season starting from Dhanteras. Youngsters’ preferred light weight & affordable diamond jewellery which is fashionable and stylish at the same time.” Customers were seen buying Jewellery ranging between `20,000 to `60,000. Dhanteras is seen as a day to accumulate more wealth by Indian households. Gandhi adds, “People were buying items such as Om or Swastik pendant or any form of jewellery to ensure that good luck enters their life on this day. Affordable light weighted jewellery is in high demand in the market.”
Prasad Kapre – Director, Style Quotient Jewellery Pvt. Ltd affirms, “The season has proven to be extremely good for lightweight jewellery and gold coins so far. Possibly due to relaxation of rules with regard to purchase below `50k. Surprisingly, we also witnessed younger customers purchase lightweight diamond pieces. As buying sentiment is improving & market is moving up with every passing day, we are hoping to have a good season ahead.” WHP Jewellers saw a 10-15 per cent rise in sales and observed that the young consumers opted for lightweight diamond Jewellery. “The market sentiments picked up steadily and there is the traditional gold buying spirit reinstated amongst buyers, thanks to the government for removal of PMLA at just the right time. Keeping in mind the demand for light weight Jewellery, we had a variety of offers on diamond jewellery like a free gold coin with every diamond jewellery purchase,” said Aditya Pethe, Director, WHP Jewellers.
The upcoming wedding season seems to have added to the increase in Jewellery demand. Adding to this Kumar told ANI that the outlook for the upcoming wedding season looks great in terms of sales.”The upcoming wedding season which begins in November is also responsible for the surge in purchases during Diwali. There are more than 25,000 weddings this year.”
Manubhai Jewellers witnessed good footfalls throughout the festive season. Samir Sagar, Director, Manubhai Jewellers said, “Dhanteras has traditionally been an auspicious gold buying day and the footfalls had been good with bridal buys and festive shopping adding an excitement in an already celebratory atmosphere. This season, bangles and chains has been a well-performing category, with machine bangles and lightweight kadas of 25gms being the popular item for this season.”
Apart from gold buying Jewellers also witnessed a steady demand for diamond Jewellery. Vaibhav Saraf, Director, Aisshpra Gems & Jewels shares, “With the removal of PMLA from gems & Jewellery sector just ahead of the festive season, there has been an upbeat sentiment. Consumers today are leaning more towards Jewellery as an adornment rather than investment; hence, we observed a rise in demand for diamond Jewellery besides gold. Overall, we have seen a sales growth of 10 per cent as compared to last year.”
The removal of gem and jewellery from the ambit of the PMLA has come as a big relief for the sector. Jewellers across the country have appreciated the move of the Government and looking forward to a positive wedding season ahead.
– Rika Aash Pathak