Jewellers expecting a good run this Akshaya Tritiya
After a dull 2016, jewellers are expecting a good run this year with an increase in around 15 per cent in sales, reports Kavita Parab.
Akshaya Tritiya is always expected to bring in good movement in the gems and jewellery market as it is the second most auspicious day after Dhanteras to buy gold or jewellery. After a tumultuous ending of the bygone year, the Indian gems and jewellery industry, especially the jewellery retailers are expecting a good business this Akshaya Tritiya, which falls on 28th April 2017.
Indians and their craze for gold is unending and auspicious days like Dhanteras and Akshaya Tritiya give rise to sudden rush in gold buying. Post demonetization as the industry is getting back to normal; the jewellers are expecting good demand on this Akshaya Tritiya. Commenting on the unending love for gold, Ms. Tanya Rastogi, Director, Lala Jugal Kishore Jewellers said “Akshaya Tritiya this time has broad expectations upon it. After the landmark year, our industry and the country as such had, people are going back to routine. Buying Jewellery is the essential hobby of our nation. Also, this summer has a long stretched wedding season so the demand has been up already and the footfall has already kick-started.”
Kapil Hetamsaria, CEO & Co-Founder, VelvetCase.com too shared similar thoughts as he said “Gold is synonymous with jewellery in India and no matter the price, the penchant for gold jewellery remains unfazed and continues to be the dominant purchase driver on Akshaya Tritiya.”
Like previous years, gold will dominate over diamonds as it's considered pure, auspicious, and the harbinger of prosperity, said Pritesh Goyal, Director & Designer, SLG Jewellers.
Prices vary jeweller to jeweller. The market price of gold stands at Rs. 2,933 for 22 carat gold. However, for the more common 22K and 18K forms, the prices stand at Rs. 2,773 and Rs 2,270.44 respectively. Commenting on the gold prices, Sunil Datwani, Owner Gehna Jewellers said "Due to the geo-political developments in North Korea, Syria and Afghanistan price of the yellow metal is sure to escalate further. Also, the Donald Trump administration has seen a drop in bank lending to corporates as public opinion is gaining ground that there is visible lack of progress on promised tax reforms and infrastructure development. In India, the upcoming marriage season in May will see a spurt in physical demand for the yellow metal. By now it is recognised that Rs. 30,000 per 10 grams is the defining price for gold demand in India. All this analysts feel have turned the monetary tide in favour of gold making it a sound investment. When investing in gold, it is important to note that though gold is considered a safe haven investment; it is vulnerable to price swings.”
Gautam Ghanasingh, CEO & Creative Director of Ghanasingh Be True has some advice. He suggests “Although the value is always perceived to appreciate, there are times that prices and value dip. It is essential to keep that risk factor in mind before making a purchasing. Looking at the current market scenario, the prices of gold have increased and does not seem to be escalating any time soon. Purchasing diamonds this year seems more of a viable option.”
In order to reap in more profits, online/offline jewellers are offering a number of discounts and offers to lure more customers into the shops. BlueStone.com is offering upto 20 per cent discount on diamond jewellery above Rs. 10,000 while Ghanasingh Be True has presented an exchange on old gold jewellery for diamond studded pieces from the latest collection; along with a special offer of 'No Making Charges' on bangles and rings, for the auspicious occasion. Reliance Jewels is offering upto 50 per cent off on making charges of gold jewellery and upto 30 per cent off on diamond jewellery; Navrathan Jewellers has three exclusive offers - Buy 1gm of gold and get 1gm of silver free. Buy 1 carat diamond and get 1gm of gold free. Buy 1kg of silver and get 25gms silver free. This incredible offer ends on April 29th, 2017. Being Human Jewellery has an offering to cater to both – investment and adornment - demands. While we have gold coins in 1, 2, 5 and 10 grams, we have also launched A ‘Good Luck’ pendant, especially for this Akshaya Tritiya. This exclusive piece inspired by universal symbols of good luck and prosperity is a must have for all jewellery lovers.
Jewellery sales expected to rise by 20 per cent
"We are expecting good sales this Akshaya Tritiya as there is pent up demand post demonetization and the money squeeze of demonetization has also come to an end. This year, Akshaya Tritiya coincides with our annual Anniversary Sale period in April and as a brand, we are expecting a rise of 25-30 per cent increase in sales this year due to this occurrence as compared to last year," said Ishu Datwani, Founder, ANMOL.
While Aditya Pethe, Director, WHP Jewellers is expecting an increased footfall this year; he says “Last 2 years have been bad for the industry. However, we saw a good footfall for Gudi Padwa, it being the Maharashtrian New Year and we are hoping an enthusiastic response for Akshay Tritiya too with an increase in footfall by 10 – 15. There has been a shift in the consumer’s mentality where they no longer restrict jewellery to just an investment option but identify it as an item of luxury. Though it will take years for this transition to take place but it has started and thus there is a shift in the buying pattern. People are opting more for light weight jewellery, diamonds and silver jewellery and a bullion sale is relatively low.”
Samir Sagar, Director, Manubhai Jewellers, too feels that there would be increased footfall of around 10 -15 per cent. “The impact of Demonetization has started fading and business has resumed back to being normal. We are hoping for a good gold run this year on Akshaya Tritiya. Since it is coming on a Friday, we are expecting the festive spirit to continue right upto Monday.”
Prasad Kapre - CEO & Director, Style Quotient Jewellery Pvt Limited said “Purchasing of gold jewellery during festivities has a strong connect with Indian society, especially on the auspicious day of Akshaya Tritiya. Buying gold on this day is a norm amongst certain classes and masses. While this tradition continues; newer trends are being witnessed. Adding diamonds to the gold purchase has been on the rise, more so by the younger target audience. Presently, what one can derive is that both, investment and jewellery for adornment are sort after."
Regarding the sales this Akshaya Tritiya, Kapil Hetamsaria, CEO & Co-Founder, VelvetCase.com said that they are expecting a significant increase in sales Y-O-Y, particularly from the lightweight gold jewellery and daily and work wear collection in Gold while Vijay Jain (CEO and Director – ORRA) said that as compared to the previous year, the consumer sentiment is in on an upswing and therefore the brand is looking forward to a positive Akshaya Tritiya.
“The challenges of the regulatory policies that were introduced by the government over the last few years are now behind us, and on the back of exciting offers from ORRA, we are very optimistic about sales this Akshaya Tritiya,” he added. Saurabh Gadgil, Chairman & MD, PNG Jewellers and Director, Indian Bullion Jewellers Association, too feels to have positive and increased demand this year. He said “We are expecting a minimum 40 per cent increase in sales from last year. We, at PNG Jewellers believe we will see strong traction in the Urban markets, given the effects of demonetization and better availability of payment methods and banking support. We are expecting huge sales to come through in bridal jewellery, gold instruments like bars and coins, diamond jewellery demand has been constantly increasing as well. But most of all, customers will go for attractive designs at attractive prices.”