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Gold rush: Jewellers make desperate bid to woo customers

Banikinkar Pattanayak
Gold rush, Jewellers, Malabar Gold And Diamonds, Anmol Jewellers, Popley Group, Akshaya Tritiya, gold, gold coins, light weight, gold jewellery, news

Malabar Gold And Diamonds is offering a 50% discount on making charges of gold jewellery and 20% on diamond value. Anmol Jewellers is going a step further, promising a waiver of making charges for loyal customers, and a 25% discount on the price of uncut diamond jewellery.

Popley Group has launched a special edition of gold coins, which are being offered at cheaper rates, and is also selling luxury watches at a 25-50% discount.

While discounts are common on the day of the Akshaya Tritiya, considered auspicious for gold buying, what is unusual, though, is the desperation of jewellers this time to improve sagging sales, apprehending a lacklustre demand. While large jewellers recorded an up to 25% rise in sales by the evening on Tuesday, it s the smaller ones that bore the brunt of a slowdown, some of the jewellers told FE.

Anantha Padmanabhan, chairman of the All India Gem and Jewellery Domestic Council, said, on an average, sales rose 10-15% this Akshaya Tritiya.

Somasundaram PR, managing director (India) at World Gold Council said: The festive sentiment among both trade and consumers appears to be stronger this year. A favourable price offers a good seasonal opportunity for wedding purchases, which underpin Indian jewellery demand. Various trade offers and promotions point towards an increase in demand for both jewellery as well as investment products like coins and bars.

Commenting on his company s bid to attract customers, Ahammed MP, chairman, Malabar Gold And Diamonds, said: Customers who have made a 10% advance booking can avail of an exciting early bird offer and get jewellery at the booked rate or prevailing rate whichever is lower.

Tight surveillance on cash supplies due to the ongoing elections has weighed on consumption in select cities, although a drop in prices in recent weeks may help reverse a slowdown in sales, some jewellers had said on Monday. Ishu Datwani, founder of Anmol Jewellers, said the footfalls had been good since morning. We are expecting 25-30% increase in sales this Akshaya Tritiya, against last year.

Vaibhav Saraf,director at Aisshpra Gems and Jewels, said: We offered a 100% discount on making charges of gold jewellery. A lot of brides opted for fusion gold collections too. We have seen a 20% increase in sales so far this Akshay Tritiya.

People are opting for light weight gold jewellery and we are receiving a good response for our temple collection. As a brand we also offered 100% discount on making charges of jewellery, Vaishali Shah, director of Rivana Gold & Diamonds.

Jewellers have seen decent sales on the Akshaya Tritiya since 2017, after two successive years of subdued growth on this day. Spot gold prices on the MCX stood at Rs 31,496 per 10 gm on Tuesday, marginally higher than the level touched on the Akshaya Tritiya day on April 18 last year but lower than Rs 33,250 at the end of February.

However, gold prices may go up again, as global equities come under pressure following the Trump administration’s announcement to go ahead with its plan to raise import duties on Chinese goods worth $200 billion.

Indian gold demand rose just 5% from January to March to 159 tonnes, against a marginal fall in the previous quarter, but it still trailed a 7% rise globally, showed the World Gold Council (WGC) data released last week. As such, small jewellers are struggling to attract customers as the government has, in recent years, introduced various curbs, including mandatory quoting of PAN beyond purchases of a certain limit and limited transaction in cash.