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With Dhanteras around the corner, jewellers are expecting strong demand momentum and footfalls across India.
While the industry witnessed a delay in demand due to the extended Shraad period as compared to FY23, the renewed surge in sales momentum post this has instilled optimism in the future outlook.
“The festive season in India has kicked off with a strong start, marked by retailers experiencing a double-digit increase in consumer demand. As we approach the Diwali season, this positive trend is expected to gain momentum,” Vipul Shah, chairman, GJEPC said.
Resonating the same thoughts, MP Ahammed, chairman, Malabar Group added, “The healthy consumer demand during Dussehra and Karwa Chauth has set things up for a busy Dhanteras this year. The demand momentum in the ongoing festive season is increasing. Discretionary spending is now back in the market. Both urban and rural consumption appear to be robust. We expect double-digit growth in sales in Dhanteras compared to last year.”
The jewellers are expecting spike in sales as compared to the last year, however, the ticket size will depend on the gold price on the day of Dhanteras.
“There is a notable surge in demand for everyday jewellery that is characterized by its minimalistic, lightweight, and ethically sourced nature,” stated Amit Pratihari, vice-president, De Beers Forevermark.
In October, consumer sentiments were dampened by the spike in gold prices by 10 per cent due to geopolitical tensions in the Middle East. However, in the last few days, gold rates have stabilised and even has moderated a little bit.
Speaking on the consumer sentiments, MP Ahammed said, “We are witnessing increasing footfalls at all our showrooms across the country. Our regular customers are buying jewellery and placing orders. We are acquiring new customers as well. The conversion rate is also good. The retail off-take of our festive collection has been great. We are witnessing a healthy increase in both pre-planned and impulsive buying. All consumer sentiment indicators are positive.”
“This festive season, customers are seeking newness and design for adornment and not keeping it in the locker. We expect both buyer and ticket size growth. Our festive average ticket sizes will be 90-95 per cent of the regular ticket size. We have also seen a 5 per cent jump in the contribution of exchange” added Ajoy Chawla, CEO of jewellery division, Titan.
This year, jewellery retailers are also observing an increasing trend of online bookings for gold purchases on Dhanteras, driven by the desire to leverage rising gold prices and the flexibility of securing purchases ahead of time.
“The main categories driving sales on Dhanteras are gold (85 per cent), silver (5 per cent), and diamond jewellery (10 per cent). Gold, particularly in the form of coins and bars, will be expected to account for about 30 per cent of sales, with the remaining 70 per cent comprising various jewellery, notably heavy jewellery pieces,” stated Saurabh Gadgil, chairman and managing director of PNG Jewellers.
Wedding Outlook
After Diwali, the wedding season will go on till December 15. So, jewellery retailers are confident that the demand momentum will continue to further accelerate till the mid of the December month.
“The ongoing mega-wedding season has led to increasing demand for heavyweight, studded and festive jewellery, that remain hot favourites across various consumer cohorts,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India Limited.
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