UAE gold sector records substantial growth percent during DSF 2015
Dubai Shopping Festival (DSF) adds sparkle to gold sales with recorded sales growth of 25-30% at participating outlets in the fest. The 20th edition of DSF has greatly contributed to the drastic push in the gold sector.
Posts the conclusion of Dubai Shopping Festival (DSF), Dubai Gold and Jewellery Group ( DGJG ) reported 25-30% increase in gold sales within UAE. Backed with the grand promotions planned for the 20th anniversary, the group saw tremendous increase in footfall within all jewellery retail partners. From the Guinness World Record holding, Dubai Celebration chain to prizes worth 100kgs of gold and 40 ct diamonds, shoppers not only participated in creating history, but also got to fulfil their dreams by winning daily and weekly raffle prizes
According to industry reports, DSF is one of the major international events that people from all over the world look forward to; and in return adds substantial value to all segments including retail, hospitality and aviation sectors. The non-oil economy of Dubai owes a great deal to inbound tourists during the festive seasons and this is why jewellery retailers assume an additional month’s sale during this period. This year, reports compiled by the Dubai Gold and Jewellery Group suggest that beginning of 2015 saw a better performance rate than compared to that of 2014.
Mr. Tawhid Abdullah, Chairman of Dubai Gold & Jewellery Group, said, “It gives me immense pleasure to announce such numbers as it represents our efforts and planning to promote the sector and work towards the vision of Dubai as city of gold and jewellery destination of the world. The price of gold is one of the most prominent factors that determine the movement of the industry along with the enormity of the prizes offered and reach during any campaign among the residents and tourists. Also this year, larger chunk of sales was by inbound tourists, therefore, tourist flow has maximum contribution to the success of the campaign. However, the jewellery sector expects reasonable growth overall this year.”
He further added, “This DSF we not only launched the biggest gold and diamond promotion but we also set another world record to mark the 20 years of collaboration with DFRE.” Due to comfortable pricing of gold in 2014, demand for jewellery in Dubai has been steadily increasing. This year, the retail sector expects substantial growth as more and more household investors turn to gold, particularly jewellery as an investment. Additionally, the tax structure for gold in other parts of the world further encouraged consumers to travel and purchase gold jewellery in Dubai. Other aspects like, the purity and competitive pricing of gold in this region as compared to various other markets, is one of the key drivers of aggressive demand for gold jewellery, especially during the DSF. Also being home to the largest Indian expat population, plays a significant role in boosting gold jewellery sales on a larger scale especially during festive seasons like Dubai Shopping Festival and Diwali.
Mr. Abdul Salam KP, Group Executive Director of Malabar Gold & Diamonds, shared; “There was a definite boost in sales in 2014 compared to 2013 and we are very happy with the sales growth that is churning this year. Taking advantage of the trend in the variations in the gold rate and keeping in mind the huge offers, there is a huge increase in customer footfall in our stores across Dubai this year. The DSF promotion campaigns have helped to enhance the sales to a certain extent and compared to the previous year, the growth of gold and diamonds sales have gone up considerably. Also diamond jewellery is gaining popularity over gold as it goes with any costume and occasion. For people who prefer light and elegant jewellery, diamonds are always the best choice. However, we observe an increasing demand for solitaire jewellery these days.”
While the gold industry enjoys a favourable growth, the diamond wholesaling and retailing also saw an exponential demand, however, customers who prefer diamond jewellery over gold have only been increasing. In order to further support this demand, DGJG offered to double the chances of winning for those who bought diamond jewellery, pearls or watches.
Commenting on the trends in the gold sector, Mr. Babu John, Chairman & Managing Director, Sky Jewellery stated his estimates, “2014 has been a great year for jewellery retailers as the gold price declined by 12 per cent compared to 2013 and it definitely translated to higher sales volume. Unfortunately, sudden increase in price has affected the overall momentum. Volatility in the price is going to be the major factor that determines the growth this year. Besides, the outlook on oil price and its overall impact on the region will leave insecurity to the general public in terms of their spending. However, as people who believe in the merit of gold would start spending more on gold as a safe investment option against all odds. These two contradictory conditions can impact the trade in either way.”
DSF caters to over 180 nationalities residing in Dubai. With its jewellery import from over 30 countries, DSF is able to meet with the demand from the global tourists visiting Dubai. Gold jewellery gets sold in Dubai all the way from 18K, 21K, 22K up to 24 satisfying the tastes and preferences of every region in the world. Dubai’s retail jewellery sector largely depends on local consumers for their yearlong sales and tourists; especially during the Dubai Shopping Festival and summer promotion. Predominantly, Asians, Chinese and Arabs are the biggest spenders during DSF.
Due to the consumer requests and popular demand, Dubai Gold and Jewellery Group promotion was extended until 5th February, where the mega raffle draws for 40 kilo gold and 8 carat diamonds was hosted.