As gold gets dearer, jewellers bank on gifts to rake in sales

Suresh P. Iyengar Mumbai | Updated on April 16, 2011

The eternal favourite of women.

With gold prices shooting through the roof, jewellers are rolling out attractive discounts and offers to bring back elusive customers, especially those who are tying the knot in this wedding season, which running up to June.

Gitanjali Gems has launched ‘The Great Indian Wedding Carnival' that promises a chance to win a ‘Marriage Sponsorship from, a special honeymoon package at the Taj property in Goa, Maruti Dzire VXI car, free Nakshatra diamond studded earnings and watches.'

Besides, customers who purchase diamond jewellery worth Rs 5,000 and above are assured of free gift of pearl and ruby jewellery and international branded watches valued up to 30 per cent of the purchase. Gold jewellery will have a fixed 25 per cent off on making charges, while purchases of solitaires (above 20 cents) will attract a flat five per cent discount.

Goenka Diamonds and Jewels, another Mumbai-based jeweller, offers newly weds a honeymoon package to Europe, Australia and New Zealand and a discount of 10 per cent on purchase of three necklaces.

Similar offers by leading jewellers are on across the country. Wedding bells apart, jewellers feel that the offer will help them cash in on the Akshaya Trithiya that falls on May 6. Akshaya Trithiya is considered an auspicious occasion for investing in gold.

Mr Mehul Choksi, Chairman and Managing Director, Gitanjali Group, said the company expects sales to the tuneof Rs 800-900 crore during the wedding season against Rs 700 crore last year.

“Wedding is one occasion where both rich and poor do not think twice to splurge. Both Gitanjali and Shuddhi Jewels will run the promotions across our diamond jewellery brands Parineeta, Gili, Nakshatra, Asmi, D'Damas, Sangini, Diya, Menz,” he added.

Gitanjali's carnival follows the success of similar promotions organised in 2009 and 2010.

Jewellers are seeing customers shifting from traditional gold jewellery to diamond and stone studded ones which are more affordable and attractive.

Mr Nitin Goenka, Managing Director, Goenka Diamonds and Jewels, said there is a great demand for jewellery made of Blue Sapphire and Emeralds as gold prices have gone up substantially.

“We have attractive schemes for people who feel diamond jewellery do not have buyback value,” he added. Under its exchange scheme, the company buys back its diamond jewellery without discounting the value if brought in within a year, provided new purchases are at least 150 per cent higher than the old jewellery value.

If the jewels are exchanged after a year, they would fetch 80 per cent value.

On Saturday, gold touched another peak on investors buying. Standard gold, used in making jewels, surged to Rs 21,450 for 10 gm, while pure gold ended at Rs 21,560. Silver ended at Rs 64,845 a kg

Published on April 16, 2011

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