Gold fest sales to rise by 25 per cent

Organised retailers are gearing up to make the most of this period. Jewellers in the city are optimistic that the festive day will set cash registers ringing.

Prominent retailers told DTNext they anticipate at least a 20-25 per cent surge in sales. Santha Kumar S, the Honorary Secretary, Madras Jewellers and Diamond Merchants’ Association, tells us, “This year we are expecting sales to increase from 20-25 per cent compared to last year. Post demonetisation, people have zeroed in on gold as the safest investment. Our craftsmen are working on rotation as the workshop is open 24/7 owing to the numbers of orders. Many customers are making advanced booking for their purchases, to avail of competitive prices – customers are assured of only 5 per cent wastage on their orders (case to case basis).” 

Princeson Jose, the third-generation entrepreneur of Prince Jewellery, is upbeat about this year’s festival. With GST rates expected to push the price of the yellow metal upwards, the current VAT rate of 1 per cent will prove to be advantageous to customers. “Gold prices have only gone up post demonetisation. So, it is still perceived as a stable investment or saving option. The belief of buying is still there and middle income groups continue to see the precious metal as an asset,” he said, noting there is a growing preference for light-weight and smaller jewellery.  Santha Kumar adds, “Owing to a hike in the rate of gold, over the past one year, customers are opting for low-weightage jewellery. Many middle-income buyers purchase within the 1 sovereign bracket (Rs 24,000-25,000 per sovereign). Buyers are looking for single piece necklaces and pairs of bangles within this  range to keep budgets in check.” 

Meanwhile, Prince Jewellery will be opening a 10,000 sq ft showroom at Tambaram on April 21 to cater to customers from Chengalpattu and Mahindra World City. Asked about Akshaya Tritiya, Jose said on gold purchase, customers would get Rs 75 off per gram, Rs 8,000 off per carat on diamond buys and 50 per cent waiver on making charges for silver purchases. 

“We have also got the advance booking scheme that allows people the cushion of buying at the current price well ahead of the occasion. So, if the gold prices slide down, we will reimburse them the difference and in case there is rise in prices, they can redeem their purchase at the booked price,” the retailer said, adding this practice had been in vogue for over a decade now.

GRT Jewellers’ CEO R Vijayaraghavan expects 50 per cent growth compared to last year’s Akshaya Tritiya. “We have brought over 500 designs in all our showrooms (42 domestic plus 3 international) from various parts of the country across all types of jewellery. After demonetisation, we expect the sales during this festive occasion to be good,” he said, adding that the retailer would be giving Rs 50 off per gram for gold purchase and waive off Rs 8,000 per carat for diamonds. 

On the safety front, MJDMA has urged its member jewellers to install CCTV cameras and burglar alarms in their premises, insure the net value of the jewellery in their shops and also depute security guards for safekeeping during the festive days. 

City jewellers on expansion mode 

After consolidating their presence in T Nagar, the retail hub, traditional jewellers are on an expansion mode. Prince Jewellery has plans to open four more showrooms this year that will include its debut in Telangana. Currently, it has seven stores with its biggest one in textile city Coimbatore. Besides its flagship store in T Nagar, upcoming locations identified are Tiruchy and Bengaluru. Meanwhile, GRT which will be adding eight stores this year in Salem, Chengalpattu, Avadi, Coimbatore, Thoothukudi and Kakinada, is firming up its entry in Mumbai and Delhi. “This will mean an investment of Rs 300 crore for setting up the eight showrooms, while Rs 60 crore each will be invested for our foray into West and North of India,” says GRT Jewellers’ CEO R Vijayaraghavan. All the expansion activity will be completed by this fiscal as the retailer targets to reach the 50-store mark by then. With plans to penetrate deeper in the tier 3 and tier 4 locations, where there is a demand for organised players, he added.