The festival of lights is also the festival of spending and affluence as money flows easily during Diwali season. Indians across the globe make the most of this festival and love to splurge and flaunt new jewellery and other accessories and clothes. Each family buys jewellery during Diwali. On Dhanteras, Lakshmi Pujan and the Hindu New Year’s Day people buy new jewellery and worship gold coins and images of the Goddess of Wealth.
Do everything to make the most of this festival of wealth
This truly is the festival of wealth and affluence. Opulence is the keyword in all celebrations during Diwali. Every family adorns a brand new look with lots of traditional wear and extolling beauty in every aspect of their living experience.
Jewellery retailers need to strike now, as this is the time to maximize profits and keep counting their turnover for the next few months to come. “We are expecting this Dhanteras to be the best period for the entire year. There is a pent up demand in the market due to the pandemic, as many weddings were postponed. They are now going to be held in this quarter and consumers have started buying jewellery for the same since Navratri,” says Aditya Pethe, Director, Waman Hari Pethe Jewellers.
Increasing gold prices draw in more customers
Every jewellery store across the nation is filled with buyers everyone wants to buy jewellery as gold prices are rocketing and many people are looking forward to invest. According to Vaibhav Saraf, Director, Aisshpra Gems and Jewels “We are witnessing a steady growth in walk-ins and customer have been steadily booking jewellery for delivery on Dhanteras. High gold prices have once again bolstered customer confidence in jewellery and overall we are expecting a growth of 10-15% on a festive season basis.”
Business is increasing by leaps and bounds
Informs Snehal Choksey, Director, Shobha Shringar Jewellers, “One of the most auspicious days of the year for buying gold is Dhanteras. We expect 75% of the business as compared to last year in volume terms, we are seeing a reversal of sentiments since the last one month which should get better each passing day.”
There is a very bullish strong bounce back in business for this Diwali season. “If you look at this festive season, right from Navratri-Dussehra to now, the footfalls are fairly regular and the market seems to be in revival mode. We are seeing a clear trend of Agri-business backed families spending more, rural India is showing more consumption appetite than the metros. Gold is still the most favoured purchase for the festive season. A lot of people including millennials and first time investors are favouring gold as an investment option. We are also seeing strong bookings in light-weight and wearable jewellery to be picked up for Dhanteras and Diwali besides bullion products,” says Dr. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers.
Diwali is the time to maximise gains
This Diwali holds the promise to make up for the loss of business during lockdown. Says Pankaj Seth, Durga Das Seth Jewellers, Amritsar, “Diwali is a big season for jewellery sales, people in our area splurge happily during this festival. The festival mood continues for nearly a month after the four actual days of Diwali. We have organized an exclusive exhibition of diamond jewellery soon after the four days of Diwali. We will be showcasing diamond with high carat points and some exclusive jewellery made especially for this exhibition. We are happy to note that business is picking up and along side this exhibition with high net worth jewellery on display, we will also have enough stock of daily wear jewellery for impulsive buyers.”
Guaranteed ROI attracts investors
Gold is becoming the strongest investment option, especially when other investment avenues aren’t giving good returns. Ramesh Davanam of Davanam Jewellers Bengaluru,says, “There is a demand for gold and silver coins as people would like to invest in bullion. We are offering 15 per cent discount on making charges, especially for Diwali shopping, we have also tied-up with SBI cards, and are giving additional discounts for SBI card holders. We anticipate a good footfall this Diwali.During Dhanteras irrespective of the prices people will come forward to buy jewellery. Demand for bridal jewellery is there in addition to this some small ticket items are in demand.There is an increase of around 20 per cent in sales, gradually this percentage will increase.”
It’s raining discounts
Says Meenu Paul Khanna of Le Khanna Jewellers, Ludhiana, “We have introduced discount on making charges for Diwali we hope business recovers and does well. There is a lot of scope for improvement of business. The splurging habits of Punjabis is yet to percolate into G & J business the way it should. There is some footfall, however, we anticipate it to improve during the next few months.”
The fluctuations in gold prices is affecting sale decisions of buyers. Some are willing to wait a little longer for prices to settle.Amit Gupta of Alankar Jewellers and Brothers, Patna says, “As prices escalate, some buyers wait for it to fall again for buying gold. Demand for gold jewellery is gradually rising but it is still a wait and watch kind scenario. At present we do sense some supply crunch whatever has been made by manufacturers we have to make do with it. Even now it is more need-based buying, demand for bridal jewellery is steadily rising. Gold demand is surely showing signs of improvement.”
Gold is the way to go
Gold has very good demand. Says Viraj Seth of Batukbhai and Sons, “For my select clients I am creating a whole new collection of ‘heirloom jewellery.’ We are planning to showcase some such exquisite jewellery for this Diwali which will outlast one lifetime. Being 50 years old in the business – we believe in creating value and adding meaning to our jewellery collection, where we focus on reminding our clients that we need to remember our roots and create value and add meaning to our lives. The rates of gold are increasing, therefore this is the time for investing in gold. People are looking forward to invest in heavy jewellery. Families are gifting heavier sets to their daughters on the wedding day.”
This Diwali holds the promise of a brighter future, increased profits and can ensure better days for the entire G & J industry throughout India.