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One segment where buying has not slackened despite rising prices is jewellery.
Thanks to the rise in offtake of light-weight jewellery and impulse buying online, this Dhanteras is sparkling though gold prices show no sign of abating. .
Jewellers expect better interest in gold and diamond jewellery, with sales moving up 35-40 per cent this festival season. Jewellery sales were sluggish the last two years on slow economic growth and high gold prices.
Rahul Singh, Head of Marketing at Shree Ganesh Jewellery House, said: “People are purchasing gold jewellery more as an investment, anticipating a future rise in prices. Diamond jewellery is the latest fashion statement for GenNext. These days, college girls come to our store to purchase diamond studs with their pocket money. The demand for light-weight jewellery has gone up almost 60 per cent.”
The average ticket size of purchase stands at Rs 8,000, he said, adding that the company expected sales to rise 35-40 per cent, especially in the light and medium weight category, as well as coins for which there has been heavy bookings.
The festival and wedding seasons account for 60-70 per cent of all jewellery sales in the country. Gitanjali Group Chairman and Managing Director, Mehul Choksi, said, “demand peaks during festival and wedding season.”
Alukkas Varghese Joy, Managing Director of Joyalukkas, said, “Prohibitive prices have brought down the purchase of gold. A decade back, an average Indian consumer bought 30-35 gm annually, but now it has come down to 15-16 gm. Most buying happens during festivals.” He said Dhanteras, which falls on Sunday, will revive sales in the northern and western markets, Tamil Nadu and Andhra Pradesh. “The price of gold has gone up by $30/ounce in the international market. This may impact prices that are likely to go up.”
Online sales
Select e-commerce players that retail gold jewellery online said light-weight jewellery priced ranging from Rs 4,500-20,000 moves the platform.
Tej Kapoor, Vice-President, fashion category, Tradus.in, said: “e-commerce is growing at a very fast pace and our jewellery sales are almost double compared with last year. Price hike has not impacted our sales as we have jewellers who sell directly to customers.” Gold price over the weekend stood at Rs 30,480 per 10 gm on MCX.
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