Is it just one of those inevitable ups and downs that mark every relationship? A swing in mood, a temporary estrangement, but one that eventually leads to a renewed passion? Or is it a clear sign of displeasure from a beau who feels she has been taken for granted too long? While it may be too early to answer this question in any conclusive manner, the fact is that while diamonds continued to glitter during Valentine’s Day 2012, there were subtle signs that the sparkle of the past few years has dulled just that little bit.%% A classic example of this is the recent analysis of V-Day 2012 sales put out by eBay India, one of the leading e-commerce portals in the country. The online retailer noted that “eBay India witnessed a sharp upswing in purchases of certain product categories that could make for great Valentine’s Gift.” Among these were electronic devices like Tablets and Bluetooth devices, and lifestyle and personal care products like sarees, fragrances, wallets and fashion accessories. Jewellery, which was once one of the hottest selling online V-Day gifts, just finds a routine mention.%% While it may be too premature to draw any conclusions from this marginal shift in preference of online shoppers, or clearly estimate just why there has been a slight slowing down in this area, reports from jewellers across the country indicate that the huge rise in prices of diamonds since V-Day 2011 could be one of the major factors.%% "Sales of diamond jewellery were better in January (2012) than December (2011). But for the industry as a whole, demand for diamond jewellery before Valentines' Day this year is subdued as prices have swelled by about 80-100 percent compared to last year," Sandeep Kulhali, vice president (retail) at Tata Group's jewellery brand Tanishq told the media, just before Valentine’s Day.%% He went on to explain the twin factors behind this change – primarily the overall slowdown in sales across different product categories due to a weak economic climate, and secondly the fact that diamonds, which were always seen as an expensive item, now cost significantly more than last year.%%

Across the industry in fact, there had been an apprehension that the spike in diamond prices would affect V-Day sales, traditionally a period when smaller pieces at lower, more affordable price points do well. The fears were exacerbated due to the sluggish economy, and a depressed consumer sentiment. As a result, companies adopted different strategies. Tanishq and Gitanjali Group both offered consumers an across the board discount of up to 20 per cent on diamond purchases, the latter bringing together all its major brands on a common promotional platform called ‘Season of Love’. Most other big brands and retailers took a similar route, or offered free gifts instead of cash discounts. Some, like Orra and Gitanjali also introduced new product lines specially for the season. Orra launched a diamond studded collection of silver jewellery beginning at Rs 1,999, while Gitanjali introduced a new brand Amore with solitaire diamonds in colourful enameled settings, prices beginning at Rs 2,500.%% These strategies certainly paid some dividends. Kulhalli noted that there was a surge in demand at the last minute, but opined that though there was a 15-20 per cent rise in sales in value terms, there was a definite decline in volume terms. In Kolkata, Siddhartha Sawansukha, MD Sawansukha Jewellers narrated a somewhat similar story. “While in terms of carat sales were almost the same as last year, in value terms there was a noticeable increase in business.”%% Striking a slightly different note, Mehul Choksi, CMD, Gitanjali Group said, “During the season our sales were up by 40 per cent in value and 20 per cent in volume terms mainly because we had advertised our products very well in preparation for the Valentine’s Day.” %%

Ironically, one of the factors that favoured diamonds vis-à-vis gold within the overall jewellery sector was the fact that soaring prices had made the yellow metal even more inaccessible for many consumers.%% Expressing the opinion that escalating gold prices made diamonds seem more affordable, Pranav Dalal, head-operations, Forever Precious Jewellery and Diamond, noted “a surge in demand for our Carbon brand, which is exclusive diamond jewellery” and said that sales till Valentine’s Day were up by almost 110 per cent. %% But it is not just about absolute costs. Jewellers agree that there is also a cultural shift that is at work. Sawansukha believes that shoppers' preferences have shifted over the last few years from gold to diamonds for V-Day gifts.%% Pankaj Parekh, eastern regional chairman of The Gem and Jewellery Export Promotion Council opined that "there has been a mass shift of preferences from gold to diamond jewellery." He however felt that the hike in prices of the precious stone compared to last year had spurred demand for low budget diamond gifts. %%

According to estimates by the All India Gems and Jewellery Trade Federation, sales of jewellery were up by over 35 per cent in February. Bachhraj Bamalwa, chairman, GJF says that the young generation prefers to wear diamond jewellery, which is “not only lighter but also a fusion of Indian and western designs, vis-à-vis bulky gold jewellery.”%% Ironically, a little over a decade ago, Valentine’s Day was a little known and rarely celebrated occasion in India. As a young generation of shoppers emerged in the new millennium, the festival gained in popularity, propelled at least partly by aggressive promotions from the jewellery industry that had seen from their experience in the US how effective a sales driver it could be. Clearly some refining of a strategy that worked well in the first decade of the millennium may be necessary in the years ahead to bring it into alignment with the realities of the day.

Is it just one of those inevitable ups and downs that mark every relationship? A swing in mood, a temporary estrangement, but one that eventually leads to a renewed passion? Or is it a clear sign of displeasure from a beau who feels she has been taken for granted too long? While it may be too early to answer this question in any conclusive manner, the fact is that while diamonds continued to glitter during Valentine’s Day 2012, there were subtle signs that the sparkle of the past few years has dulled just that little bit.%% A classic example of this is the recent analysis of V-Day 2012 sales put out by eBay India, one of the leading e-commerce portals in the country. The online retailer noted that “eBay India witnessed a sharp upswing in purchases of certain product categories that could make for great Valentine’s Gift.” Among these were electronic devices like Tablets and Bluetooth devices, and lifestyle and personal care products like sarees, fragrances, wallets and fashion accessories. Jewellery, which was once one of the hottest selling online V-Day gifts, just finds a routine mention.%% While it may be too premature to draw any conclusions from this marginal shift in preference of online shoppers, or clearly estimate just why there has been a slight slowing down in this area, reports from jewellers across the country indicate that the huge rise in prices of diamonds since V-Day 2011 could be one of the major factors.%% "Sales of diamond jewellery were better in January (2012) than December (2011). But for the industry as a whole, demand for diamond jewellery before Valentines' Day this year is subdued as prices have swelled by about 80-100 percent compared to last year," Sandeep Kulhali, vice president (retail) at Tata Group's jewellery brand Tanishq told the media, just before Valentine’s Day.%% He went on to explain the twin factors behind this change – primarily the overall slowdown in sales across different product categories due to a weak economic climate, and secondly the fact that diamonds, which were always seen as an expensive item, now cost significantly more than last year.%%

Across the industry in fact, there had been an apprehension that the spike in diamond prices would affect V-Day sales, traditionally a period when smaller pieces at lower, more affordable price points do well. The fears were exacerbated due to the sluggish economy, and a depressed consumer sentiment. As a result, companies adopted different strategies. Tanishq and Gitanjali Group both offered consumers an across the board discount of up to 20 per cent on diamond purchases, the latter bringing together all its major brands on a common promotional platform called ‘Season of Love’. Most other big brands and retailers took a similar route, or offered free gifts instead of cash discounts. Some, like Orra and Gitanjali also introduced new product lines specially for the season. Orra launched a diamond studded collection of silver jewellery beginning at Rs 1,999, while Gitanjali introduced a new brand Amore with solitaire diamonds in colourful enameled settings, prices beginning at Rs 2,500.%% These strategies certainly paid some dividends. Kulhalli noted that there was a surge in demand at the last minute, but opined that though there was a 15-20 per cent rise in sales in value terms, there was a definite decline in volume terms. In Kolkata, Siddhartha Sawansukha, MD Sawansukha Jewellers narrated a somewhat similar story. “While in terms of carat sales were almost the same as last year, in value terms there was a noticeable increase in business.”%% Striking a slightly different note, Mehul Choksi, CMD, Gitanjali Group said, “During the season our sales were up by 40 per cent in value and 20 per cent in volume terms mainly because we had advertised our products very well in preparation for the Valentine’s Day.” %%

Ironically, one of the factors that favoured diamonds vis-à-vis gold within the overall jewellery sector was the fact that soaring prices had made the yellow metal even more inaccessible for many consumers.%% Expressing the opinion that escalating gold prices made diamonds seem more affordable, Pranav Dalal, head-operations, Forever Precious Jewellery and Diamond, noted “a surge in demand for our Carbon brand, which is exclusive diamond jewellery” and said that sales till Valentine’s Day were up by almost 110 per cent. %% But it is not just about absolute costs. Jewellers agree that there is also a cultural shift that is at work. Sawansukha believes that shoppers' preferences have shifted over the last few years from gold to diamonds for V-Day gifts.%% Pankaj Parekh, eastern regional chairman of The Gem and Jewellery Export Promotion Council opined that "there has been a mass shift of preferences from gold to diamond jewellery." He however felt that the hike in prices of the precious stone compared to last year had spurred demand for low budget diamond gifts. %%

According to estimates by the All India Gems and Jewellery Trade Federation, sales of jewellery were up by over 35 per cent in February. Bachhraj Bamalwa, chairman, GJF says that the young generation prefers to wear diamond jewellery, which is “not only lighter but also a fusion of Indian and western designs, vis-à-vis bulky gold jewellery.”%% Ironically, a little over a decade ago, Valentine’s Day was a little known and rarely celebrated occasion in India. As a young generation of shoppers emerged in the new millennium, the festival gained in popularity, propelled at least partly by aggressive promotions from the jewellery industry that had seen from their experience in the US how effective a sales driver it could be. Clearly some refining of a strategy that worked well in the first decade of the millennium may be necessary in the years ahead to bring it into alignment with the realities of the day.

Is it just one of those inevitable ups and downs that mark every relationship? A swing in mood, a temporary estrangement, but one that eventually leads to a renewed passion? Or is it a clear sign of displeasure from a beau who feels she has been taken for granted too long? While it may be too early to answer this question in any conclusive manner, the fact is that while diamonds continued to glitter during Valentine’s Day 2012, there were subtle signs that the sparkle of the past few years has dulled just that little bit.%% A classic example of this is the recent analysis of V-Day 2012 sales put out by eBay India, one of the leading e-commerce portals in the country. The online retailer noted that “eBay India witnessed a sharp upswing in purchases of certain product categories that could make for great Valentine’s Gift.” Among these were electronic devices like Tablets and Bluetooth devices, and lifestyle and personal care products like sarees, fragrances, wallets and fashion accessories. Jewellery, which was once one of the hottest selling online V-Day gifts, just finds a routine mention.%% While it may be too premature to draw any conclusions from this marginal shift in preference of online shoppers, or clearly estimate just why there has been a slight slowing down in this area, reports from jewellers across the country indicate that the huge rise in prices of diamonds since V-Day 2011 could be one of the major factors.%% "Sales of diamond jewellery were better in January (2012) than December (2011). But for the industry as a whole, demand for diamond jewellery before Valentines' Day this year is subdued as prices have swelled by about 80-100 percent compared to last year," Sandeep Kulhali, vice president (retail) at Tata Group's jewellery brand Tanishq told the media, just before Valentine’s Day.%% He went on to explain the twin factors behind this change – primarily the overall slowdown in sales across different product categories due to a weak economic climate, and secondly the fact that diamonds, which were always seen as an expensive item, now cost significantly more than last year.%%

Across the industry in fact, there had been an apprehension that the spike in diamond prices would affect V-Day sales, traditionally a period when smaller pieces at lower, more affordable price points do well. The fears were exacerbated due to the sluggish economy, and a depressed consumer sentiment. As a result, companies adopted different strategies. Tanishq and Gitanjali Group both offered consumers an across the board discount of up to 20 per cent on diamond purchases, the latter bringing together all its major brands on a common promotional platform called ‘Season of Love’. Most other big brands and retailers took a similar route, or offered free gifts instead of cash discounts. Some, like Orra and Gitanjali also introduced new product lines specially for the season. Orra launched a diamond studded collection of silver jewellery beginning at Rs 1,999, while Gitanjali introduced a new brand Amore with solitaire diamonds in colourful enameled settings, prices beginning at Rs 2,500.%% These strategies certainly paid some dividends. Kulhalli noted that there was a surge in demand at the last minute, but opined that though there was a 15-20 per cent rise in sales in value terms, there was a definite decline in volume terms. In Kolkata, Siddhartha Sawansukha, MD Sawansukha Jewellers narrated a somewhat similar story. “While in terms of carat sales were almost the same as last year, in value terms there was a noticeable increase in business.”%% Striking a slightly different note, Mehul Choksi, CMD, Gitanjali Group said, “During the season our sales were up by 40 per cent in value and 20 per cent in volume terms mainly because we had advertised our products very well in preparation for the Valentine’s Day.” %%

Ironically, one of the factors that favoured diamonds vis-à-vis gold within the overall jewellery sector was the fact that soaring prices had made the yellow metal even more inaccessible for many consumers.%% Expressing the opinion that escalating gold prices made diamonds seem more affordable, Pranav Dalal, head-operations, Forever Precious Jewellery and Diamond, noted “a surge in demand for our Carbon brand, which is exclusive diamond jewellery” and said that sales till Valentine’s Day were up by almost 110 per cent. %% But it is not just about absolute costs. Jewellers agree that there is also a cultural shift that is at work. Sawansukha believes that shoppers' preferences have shifted over the last few years from gold to diamonds for V-Day gifts.%% Pankaj Parekh, eastern regional chairman of The Gem and Jewellery Export Promotion Council opined that "there has been a mass shift of preferences from gold to diamond jewellery." He however felt that the hike in prices of the precious stone compared to last year had spurred demand for low budget diamond gifts. %%

According to estimates by the All India Gems and Jewellery Trade Federation, sales of jewellery were up by over 35 per cent in February. Bachhraj Bamalwa, chairman, GJF says that the young generation prefers to wear diamond jewellery, which is “not only lighter but also a fusion of Indian and western designs, vis-à-vis bulky gold jewellery.”%% Ironically, a little over a decade ago, Valentine’s Day was a little known and rarely celebrated occasion in India. As a young generation of shoppers emerged in the new millennium, the festival gained in popularity, propelled at least partly by aggressive promotions from the jewellery industry that had seen from their experience in the US how effective a sales driver it could be. Clearly some refining of a strategy that worked well in the first decade of the millennium may be necessary in the years ahead to bring it into alignment with the realities of the day.