Jewelry sale to go up this Diwali, say Experts

With Indians possessing a penchant for buying gold, especially during Diwali, sale of the yellow metal is likely to expand. Additionally, the prospects of and increment in diamond sales are also buoyant, given the metal is considered to be a symbol of both fashion and status.

Oct 05, 2016 09:10 IST India Infoline News Service

Post a lull of four years, the demand for gold is being said to climb up this festive season, irrespective of increasing prices as compared to the year before.

Given Amazon’s tagline for Diwali, which says “Tyohar Bade Dilwala” (the festival with a big heart), the e-commerce giant aims to lure dormant shoppers and first-time buyers, this festive season. This encompasses the jewelry segment as well, which is likely to prosper, this time. With Indians possessing a penchant for buying gold, especially during Diwali, sale of the yellow metal is likely to expand. Additionally, the prospects of and increment in diamond sales are also buoyant, given the metal is considered to be a symbol of both fashion and status.

With Amazon Great Indian Sale followed by competitors Flipkart and Snapdeal, the festive season has already begun with a bang. For players like Flipkart and Snapdeal, the festive season will determine their ability to establish stability and remain unswerved by demand rise and fall.. For smaller e-commerce startups, survival is at stake. Players like AskmeBazaar, which advertised aggressively during Diwali last year, shut down before they could make it to this one, as per published data.

The phrase “no making charge” lures customers to shop jewelry online, thereby driving customers to make purchases in bulk. Rising gold prices are contributing to the age-old “making charges”. A goldsmith charges a “making charge” from the customer to design an attractive piece and thus it varies from design to design based on the complexity, as per jewelry industry player, Orsuq.

Online jewelers are reducing the making charges by making the cost of jewelry about 25 to 37% lesser than retail shops, so as to beat the high offline retailers who are dominated by big players like Tanishq, Kalyan Jewelers, Waman Hari Peth, Malabar & Joy Alukkas. In addition to this, they are also bringing in region specific traditional designs that suits consumer tastes and sensibilities. Online jewelers are also providing high quality and strict quality control standards. Hence, it is a win-win situation for buyers looking to shop for Dussehra and Diwali, as per the company.

"We are launching our budget products soon and that would be for everyone including the middle class family. We will also have 0% making charge services across our diamond jewelry products. In terms of demand, we are expecting a growth of 20 to 30% growth in sales of jewelry as compared to the last few years, especially during a festive season such as Diwali as it is one of the most prominent festivals of India and is emotionally connected to every Indian family, “ says Minesh Shah, COO, Orsuq.com.

Sale of gold jewelry is expected to grow by 40% in value and 20% in volume, according to All India Gem & Jewellery Trade Federation.

Sales are expected to double as compared to last year. The sentiments are positive due to the increased spending power followed by lighter jewelry options available, starting Rs 3000, said Atul Sinha, Senior Vice-President, Marketing, CaratLane.com.

Jewellery portal, CaratLane.com has added 150 new stock keeping units (SKUs), a measure of unique products, to its existing inventory of 4,000 units, as reported by Hindustan Times.

“While in the first quarter jewelry sales were tepid, we have seen an upward sales trajectory in September and expect festival sales to be robust with 10% growth over last year,” said T S Kalyanaraman, Chairman and Managing Director of Kalyan Jewelers.

Freebies, easy returns, gift vouchers and try-at-home options are expected to be offered from the retailers’ end. While Kalyan Jewelers has announced two free gold coins on purchase of jewelry worth Rs. 25,000, Caratlane.com allows product returns even after 30 days of purchase with 100% money back guarantee. Online store of Malabar Gold Diamonds offers gift vouchers up to Rs 10,000, which could be redeemed only during online purchases.

India is a land of both humungous challenges and sizeable opportunities, so hopes that are hinged to the festive season are hitting the roof for all kinds of products, including jewelry, believe retail industry experts.



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