Jewellery Sales spurt on Dhanteras, Diwali
After witnessing lukewarm responses in Diwali and Dhanteras for past two years, jewellers were happy with gold prices at comfortable level that spiked the sales this festive season.
According to reports, gold sales jumped 30-50 per cent on Dhanteras as the metal’s price stabilised below its peak. Retailers from all-over India witnessed a surge in demand for coins and jewellery on Dhanteras and Diwali – the most auspicious time for Indian to buy gold. It was the token demand for coins and bars that fed the sales growth.
The moderation of gold prices compared to previous months drove the buyers to invest further in the yellow metal. Estimates of October gold imports climbing to 65 tons and the market returning to a marginal premium after two quarters of discounts reflect a rise in jewellery demand this Diwali season. Good monsoons this year has boosted the jewellery sales in rural areas as well.
Dhanteras sets the trend for jewellery sales in the ensuing wedding season that begins a fortnight after Diwali. “The trade estimates a 30-50 per cent growth in jewellery sales this Dhanteras. Consumers who have been deferring gold purchases are back and demand for jewellery and coins is higher,” said Somasundaram P R, Managing Director, India, World Gold Council to Business Standard. After hitting `31,480 per 10 gm in August and again in September, gold moderated to `29,995 per 10 gm, a decline of 5 per cent from its recent peak.
The price of gold declined by `65 per 10 gm on October 28. “The trend indicates a 50 per cent rise in sales. Our online sales almost doubled during Dhanteras, indicating the season’s sales will grow 35-40 per cent,” said Mehul Choksi, managing director, Gitanjali Gems. Online jewellery sales grew 100 per cent this Dhanteras as e-commerce companies offered discounts. Apart from selling on its own platform, Jewelsouk.com, Gitanjali Gems sells gold jewellery and coins on Snapdeal and Amazon.
P C Jeweller expected 25-30 per cent growth in offline and online sales, according to its chief operating officer R K Sharma. “We are seeing green shoots in consumer spending. While the run-up to Diwali has been slower than anticipated, footfalls today have been very good and we expect Dhanteras sales to be 10-15 per cent higher than last year,” said Vijay Jain, Chief Executive Officer and Director, ORRA, which caters to the upmarket jewellery segment to Business Standard.
Many other retailers like Kalyan Jewellers, Popley Group, Anmol Jewellers, etc. witnessed up to 20-25 per cent sales on Dhanteras as per the reports. Waman Hari Pethe Jewellers had witnessed a 15 per cent rise in footfalls around Dhanteras and Diwali. However, some some small-time jewellers in Delhi and Mumbai expect a maximum of 10 per cent increase in their sales. The expectation that gold prices could rise further, over and above a 17 per cent jump since last Dhanteras, drove traffic at jewellery outlets, according to big jewellers. Consumers — who had to defer purchases due to a long strike by jewellers earlier this year — are also back in the market, improving demand, they said.
Diamond studded or platinum jewellery is leading the trend this Diwali on the back of growing change in the mindset of women, industry body Assocham said. Diamond studded or platinum jewellery is leading the trend this Diwali on the back of growing change in the mindset of women, industry body Assocham said. Small items like earring, rings and light bangles see heavy demand, it said in a statement. Majority of the jewellers in the country are focusing on platinum-based diamond jewellery over traditional gold and silver ornaments to tap the changing preferences of consumers, it added.
“The demand for diamond jewellery is estimated to have grown by 30-35 per cent this season and platinum too has seen a growth of 25 per cent this year,” Assocham’s survey said. The survey covered 350 jewellery-makers based in Delhi- NCR, Mumbai, Ahemdabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun. It also said that the overall share of platinum and diamond based jewellery in the market is expected to take on a significant part of the gold jewellery sales in the near future.