This Akshaya Tritiya, jewellers are anticipating a boost in sales as gold prices have slightly decreased compared to last month. Despite a 20% decrease in sales volume in April, the value of gold consumption rose due to the upward trend in gold prices.
Jewellery retailers anticipate that Akshaya Tritiya will drive significant growth in gold sales, potentially surpassing a 30% increase over FY 23-24. They also anticipate higher foot traffic and average transaction values compared to previous years.
According to Dr. Saurabh Gadgil, Chairman and MD of PNG Jewellers, gold sales are expected to exceed last year’s figures in terms of value, driven by higher rates. Additionally, there’s an anticipated rise in sales volume. He predicts a year-on-year growth of approximately 10 to 15 percent in quantity and 35 to 40 percent in value.
Considering the current economic and market conditions, the industry anticipates a greater focus on gold as an investment asset rather than purely ornamental jewellery.
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“We believe that gold coins, jewellery, bars, and tickets will be purchased through digital gold buying platforms. Indian households have a strong cultural attachment for gold, and price appreciation has fueled demand for gold as an investment asset, leading to increased consumer interest in Gold ETFs. Given the strong cultural connection, any short-term drop in gold prices could result in record gold demand during Akshaya Tritiya’, said Sachin Jain, WGC’s regional CEO.
“Expecting robust sales during Akshaya Tritiya with a price point of INR 70,000, I don’t foresee any impact on sales volume,” remarked Vipul Shah, Chairman of GJEPC.
Geopolitical uncertainties, central banks bolstering their reserves, and enduring inflation have led to fluctuations in gold prices over the past month. Consequently, there’s a sense of uncertainty among customers regarding their spending intentions, despite the ongoing wedding and festive season.
“The recent decline in gold prices just before Akshaya Tritiya holds promise, potentially reigniting demand that was affected by the recent price surge. Though fluctuating prices may deter certain consumers, the present trajectory hints at a favorable outlook for increasing volumes. Furthermore, the enduring demand for coins and bars, as evidenced in past years, signals a steady market sentiment within this segment,” remarked M.P. Ahammed, Chairman of Malabar Group.
Expressing similar sentiments, Vishnusharan Bhatt, Managing Director of Bhima Gold Pvt. Ltd., remarked, “As gold prices have steadied in recent weeks, we’ve observed a resurgence in consumer confidence, indicating a renewed interest in engaging in gold transactions. The enduring consumer resilience towards purchasing gold during Akshaya Tritiya remains palpable.”
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The consumer mindset is shifting. In the past, transactions were straightforward – a fixed amount for a specific quantity of gold. Nowadays, customers are open to exchanging a portion of the quantity for additional services, intricate finishes, and a wider range of products, even for traditional celebrations.
A notable trend this season is the increasing popularity of everyday jewellery known for its minimalist, lightweight, and ethically sourced attributes.
“We believe that by addressing the customer’s needs through promoting lightweight, smaller-ticket value purchases, we are staying true to our customers,” commented Ajoy Chawla, CEO of the jewellery division at Titan.
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“In recent years, we’ve observed a growing trend among younger consumers opting for lightweight gold and diamond jewellery, even during festivals. We anticipate this trend to persist during Akshaya Tritiya,” further noted Vishnusharan Bhatt.
Offering a different viewpoint, M.P. Ahammed remarked, “We’ve noticed a shift where customers are prioritizing wedding jewellery while also allocating portions of their budgets to everyday wear pieces.”
“There’s a noticeable transition towards mindful purchasing – customers are looking for pieces that carry significance and can be cherished across generations,” commented Tarang Arora, Creative Director and CEO of Amrapali Jewels.
Echoing similar sentiments, Amit Pratihari, Vice President of De Beers Forevermark, remarked, “We’re also witnessing an increasing consumer demand for top-quality solitaire diamonds.”
In addition to launching new collections, jewellery retailers are rolling out a variety of promotions to entice customers, such as discounts on advance bookings and making charges, cashback incentives, and complimentary gifts.
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“To attract younger customers, we have introduced gold beans in half-gram and one-gram sizes. Additionally, we are concentrating more on bangles & necklaces,” stated Suvankar Sen, MD & CEO of Senco Gold & Diamonds.
“We have unveiled a new line of 10,000 styles of modern everyday wear jewellery which is influenced by global design. Tanishq will be holding a number of interesting and participatory styling sessions at a few of its outlets in addition to this adaptable collection, Chawla continued.
