With Diwali around the corner, India is gearing up for the festivities. The 5-day season break begins with Dhanteras marking its beginning. Buying precious metals on Dhanteras is considered to be auspicious, and jewelry being the first choice all across India.
India is one of the largest jewelry markets in the world, witnessing huge sales of Gold and Silver jewelry on Dhanteras.
With the world reopening post two Covid struck years, jewelry brands across India are expecting sales and revenue to shoot up this season.
Most jewelry brands state that things are looking up with respect to sales and revenue, along with positive consumer sentiment.
“We are witnessing strong footfalls in markets across the country during this festive season, starting from H2 FY23. Dhanteras pre-booking has got good response and overall the market is showing signs of positive consumer sentiment,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.
On a similar tone, Joy Alukkas, Managing Director, Joyalukkas Group said, “we expect very good sales across all our showrooms in India, having attractive offers and rewards on purchase as part of our festive offering. We are receiving appreciative feedback from many customers. Our expectation is to see record growth during this festival and from the early trends we are sure this will be the outcome this year.”
Malabar Gold & Diamonds too is witnessing a strong revival of demand for jewelry which underlines the fact that consumer sentiment has finally turned positive with the onset of the festive season.
“The socio-economic affinity towards gold and pent-up demand for the yellow metal is expected to elevate the festive jewelry demand during Dhanteras and Diwali, as buying jewelry during Dhanteras, in particular, is considered auspicious,” said MP Ahammed, Chairman, Malabar Gold & Diamonds.
The current season is quite busy, with the ongoing wedding season and numerous other festivals coming up, making it a period of gifting as well as purchasing.
Joyallukas believes, in India, Gold and Jewelry holds immense emotional value during weddings, festival, and any auspicious occasions, and buying and gifting the same further continues to be an integral part of our culture.
The brand states that the current average ticket size it is witnessing is in the range of Rs 75,000 to Rs 1,50,000.
As per Malabar Gold & Diamonds, positive consumer sentiment is expected to boost volume-based buying. The jewelry retail trade is expecting substantial growth in sales during the festive season this year, as this will be the first full-fledged festive season after two pandemic-induced seasons in 2020 and 2021.
Adding on to the same, Joy Alukkas said, “The demand we are seeing is for our exclusive festival collections and for wedding jewelry since it's also the wedding season in India. In terms of the type of precious jewelry that is in demand, Gold and Diamond jewelry is the most bought followed by other precious jewelry options like platinum, gemstones, and silver as well.”
Expectations from Festive Season
On the back of strong demand during the first 2 quarters of the year, clubbed with the favorable gold prices, brands are confident that the demand momentum will pick up the pace, with many more consumers opting to make investments in the yellow metal as the season progresses.
“It is important to be cognizant that we have started off this festive season on a higher base, with overall Diwali festive sales reaching record high levels in 2021,” said Ramesh Kalyanaraman.
Similarly, with gold price movements depending on evolving geo-political and macroeconomic developments, the trade will be keenly watching the gold price behavior in the October-December quarter.
“A stable and softened gold price will further drive gold demand. Our One India One Gold Rate offering uniform gold pricing across the country offers stable and transparent gold prices to the customers,” asserted MP Ahammed.
Concluding its sentiment Joy Alukkas stated, the jewelry retail business was one of the worst-hit sectors during the pandemic, having to adapt to the changing landscapes, innovate and strategize to remain popular and relevant to jewelry lovers.
He further added, “This year with the situation and markets gradually stabilizing, we are witnessing increased footfalls and sales have also come back to normal. We are positive the good times will continue for the jewelry and the pandemic will be soon considered a bad dream.”
In conclusion, the jewelry segment is expected to grow and gain massive traction amidst the ongoing festive season.