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Jewelers Offer Freebies to Boost Festive Season Sales
Nov 6, 2012 7:40 AM
By Dilipp S Nag
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RAPAPORT... Several Indian jewelers are offering free gifts, discounts on making charges, among other incentives in order to attract consumers and boost their sales. Demand for jewelry has indeed picked up in the past few days with the approach of the Diwali festival and the wedding season. Diwali, the festival of lights, will be celebrated on November 13 this year.
Divyesh Shah, the group head of retail business at Tribhovandas Bhimji Zaveri (TBZ), noted that the consumer demand has been good since mid-October following the end of Shradh period, when costumers are reluctant to buy new things.
"Consumer sentiment looks a bit positive and so we are hopeful that Diwali should be better than last year," Shah said. "Jewelry sales are expected to be good and I don’t think that there will be any impact on sales volume as people seem to have accepted the current gold price levels."
Pure gold in the spot markets of Mumbai is currently quoting around $566 (INR 30,900) per 10 grams, up from about INR 28,750 per 10 grams a year ago.
The majors that announced offers for consumers in India include Gitanjali Gems, Tanishq, Anmol Jewellers, Chintamanis, TBZ and Lagu Bandhu, among others. Some of the jewelry retailers have also stated that they will keep their stores open all the way up until Diwali. India's Department of Posts is offering a 7 percent discount on the gold coins that it sells thorough its identified post offices in Delhi. The coins are available in 0.5 gram, 1 gram, 5 grams, 8 grams, 10 grams, 20 grams and 50 grams.
“We are expecting excellent business this time because apart from the festival season, there is also wedding season. The wedding occasion that started in November is spread out until July next year,” said Kumar Jain, the vice president of Mumbai Jewellers Association. “And consumers are accepting the current price levels.”
He stated that sales are also expected to be good on November 11 on the occasion of Dhanteras -- an auspicious day for purchasing gold -- as many people will buy jewelry for their wedding requirements. Jain noted that the discounts and freebies offered by the jewelry retailers will help their sales, but consumers are visiting more stores to get better quality, variety and design in the jewelry.
Indra Jain, a housewife shopping in the Mumbai’s Zaveri Bazar -- a focal point for the city’s jewelry trade -- stated that she is looking for jewelry with good design and for wearing on different occasions. “The higher gold prices have slightly impacted the quantity that I buy. But if there’s a requirement then you will buy irrespective of prices,” she noted.
Shah said, “Jewelers who have greater design sense and understanding strength will do much better than others because now consumers are well aware and they are visiting two to three stores before selecting the jewelry, especially in the wedding segment.” He added that there might be some decline in the volume of gold coin sales because people are still not considering the current levels as the right price for the investment.
“Diwali sales are expected to be good. Gold prices are higher so sales volume might be a little lower but value wise it will be higher," said Raj Parikh, the director at Uni-Design Jewellery Pvt. Ltd.
CARE Research stated that with prices of gold on the rise, the new normal above INR 30,000 per 10 grams in India will become acceptable and buying will resume since there is considerable pent-up demand, starting with this festival season.
Industry officials stated that the diamond manufacturers will also observe consumer demand during the festival season before they open their factories for a new round of production. Most of the diamond manufacturing units in Surat will be closed for Diwali vacation from this weekend until the end of the month.
“The diamond manufacturing picked up in October as compared with August and September period due to the festive season demand. Now people will see how the goods are selling and accordingly either they will extend the vacation or shorten the vacation,” said Hitesh Shah, a partner at Venus Jewel.
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Tags:
Dhanteras, diamond, Dilipp S Nag, Diwali, Festival, gold, India, jewelers, retailers, TBZ, wedding
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