Business Telegraph : Despite slump, jewellers expect gold to drive up festive sales
KOLKATA: In spite of economic slowdown, jewellers are expecting gold offtake to go up this Diwali with lightweight and diamond jewellery being the flavour of the season.
Tanishq, for instance, is extremely upbeat about this year’s Dhanteras and Diwali sales. Mr Sandeep Kulhalli, senior vice president, (Retail and Marketing), jewellery division, Titan Company Limited said, “at Tanishq, there has been a substantial growth all year through and we are confident of posting high volumes this year too. There has been a positive sentiment seen among consumers as everyone is gearing up for Dhanteras. The government’s recent announcement on bonus will also help boost sales this year. Wedding continues to be the big ticket purchase and we are receiving positive reactions with our latest Diwali collection. This year we have opened quite a good amount of stores and we are looking forward to see new walk-ins from new as well as from our existing stores.”
Aditya Pethe, director, WHP Jewellers said that his firm has witnessed a tremendous response in bullion sales on ecommerce. “At store level, so far the festive season has been average. Though we did sales on Dussehra, the wedding shopping is yet to pick up. We are optimistic that during Dhanteras our year on year targets will be met. Being festive season, like every year, we have seen rise in silver articles sales since Ganesh Utsav. Light weight diamond jewellery as well as diamond set under 3 lakh are popular among our buyers.”
Rohan Narang, managing director of Delhi-based Hazoorilal Legacy said they have entered the festive season with optimism and the outlook has been positive so far. “The bridal and wedding clientele is enthusiastic and have very warmly received our latest collections. Besides, with Dhanteras round the corner, we’re looking at an increased footfall at our stores,” he said.
Jewellers like Saurabh Gadgil, managing director, PNG Jewellers said that high gold price will not mar Diwali sales. “In terms of style and design, lighter pieces are in vogue this season. Though this is partly driven by economic considerations and a desire for pocket-friendly alternatives. The lower ticket value of individual purchases is compensated for by higher footfall. A positive, and surprising, development this season has been an uptick in the interest in diamonds and platinum, with studded jewellery making a comeback in a big way. Overall, we’re optimistic about the market scenario and anticipate good consumption for the jewellery industry as a whole,” said Gadgil.
Shreyansh Kapoor, vice president, Kashi Jewellers added that they are hoping buyers to come back to the stores to make jewellery purchases as it is a festive time. “Also, a lot of consumers who don’t have weddings or occasions in the year, end up buying during Diwali. The love for the precious metal is still there, it all depends on the rate that customers are comfortable with,” he added.