[Covid 19] How jewellery industry is looking at plethora of corrective measures to streamline the business?

In an exclusive conversation, Bhuvan Goel, founder, S.KA Diamonds talks about Covid impact on his startup venture
[Covid 19] How jewellery industry is looking at plethora of corrective measures to streamline the business?
Bhuvan Goel

How  do you see the impact of Covid 19 on overall jewellery market? When we can expect market to revive?

If we talk about us, we are closed since 20th March and as of now, when the lockdown is extended till May 3, I don’t think there is any hope that we will be back to work anytime soon. All this has surely affected our target for the last financial year, but we are helpless. As of now, all our wedding orders have been canceled. There are no new orders so far because of the market fall down.  Not just the wedding orders, even the previous orders have also been cancelled or are on hold. As far as I am seeing through my clienteles, most of them have postponed their marriage to later this year or next year. We are not sure as to when they will be able to place the order again.

 While back, jewellery industry was strongly advocating slashing import duty on gold. Do you think more such corrective measures are required to revive the market?

As an industry, we need many more corrective measures to streamline the functioning of jewellery market. As of now, so many loopholes are there in the industry that create hurdle in the smooth functioning of the industry. So in total, we need corrective measures for sure.

How you have tweaked your growth plans in context of covid 19?

  Now, we are focusing on online sales because once the lockdown is removed and people will start going out, they will start looking for products online. I think it's better to go online, as it will smoothen the sale cycle of the company. Once things start running up smoothly, we will think of more alternatives. Right now, the online product range will be between Rs. 5000- Rs 25000.

Do you think consumer behaviour not be same as far as jewellery consumption is concerned in post Covid era?

I think the upcoming quarter that is from June to November is going to be very tuff for everyone financially. The consumer cycle is only for consumable and eatable essentials. If we talk about diamond industry, it is mainly based on marriages and big family events and things like that will surely be on hold for some time. So business is going to be very hard for next one financial year. I think January 2021 will bring in some change for the market players.

What is your assessment about imitation jewellery? Do you think this segment is also equally impacted?

Imitation jewellery is duly impacted. Hundreds of products are stuck in transit. I’m expecting a large portion of the orders that are stuck in transit now to come back as returns. Even after the lockdown ends, I don’t expect customers to come running back to buy jewellery. I think for all sellers, it’s a cash flow issue and it’s wrong for the government to expect to pay salaries. Their entire business has shut down and expecting loss-making sellers to keep paying salaries is practically difficult.

Bhuvan Goel
 
 
 
 
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