The year that was
Seldom does a single year present so many contrasting moods and trends as did 2021. From an environment of fear and despair to a high of positivity, optimism and robust commerce, this year has been quite a journey for the G & J industry, finds out Suneeta Kaul.
The year 2021 will be remembered for a long time by the gems and jewellery industry. And with reason. It has been a topsy-turvy, tumultuous year, marked by a smorgasbord of factors – gloom, uncertainty, lockdowns, slowdown, faint rays of hope, cautious acceleration and, finally, the opening of floodgates and unprecedented buying and selling.
With the COVID pandemic having well and truly taken the sheen off the industry in the previous year, this year did not begin too well either. In fact, the mood was palpably down. By April, the deadly second wave of the pandemic hit the country, and the results were devastating, both for individuals and corporate entities. But by July-August, things seemed to be under control. Mass vaccination had started, and the number of COVID-positive cases exhibited a declining trend. Stores started remaining open for longer hours and commerce picked up, albeit tentatively.
And then, IIJS happened, changing the fortunes of the industry dramatically. So great was the impact of the event that industry players declare, with near-total unanimity, that in one quarter of 2021, they have made up for the slowdown of sales in the previous quarters of the year. The festive and wedding season, beginning with the Navratri festivity in October, and extending all the way to Diwali, and beyond, all contributed to the high-octane commercial activity, resulting in a huge bonanza for the industry. The windfall is expected to continue well into 2022.
Based on extensive research and numerous conversations with industry captains across the length and breadth of the country, here’s an in-depth look at how the year unfolded, what the highlights were, the lessons that were learnt by the industry, and what the outlook for the coming year looks like.
Record sales
• In spite of the pandemic, 2021 saw big sales happening
• The year started slow, ending strong
• Mass vaccinations instilled confidence in people’s mind to go out and visit stores once again
• The third wave did not materialize, so commercial activity peaked just in time for the festive and wedding season
The year started on an all-time bad note, and just as things started picking up, the second wave of COVID messed up everything. April and May were really bad. We missed Akshaya Tritiya sales for two years in a row. It was only when vaccination started gaining momentum that the bleakness started disappearing. The Diwali season was very good for us, and we notched record sales, and almost touched pre-demonetization levels. I believe the worst is now behind us. People want to move on, they are fed up of postponing life. We, as a company, are proactively responding to the situation. We are hiring the right kind of staff, our inventory management is better now and we make it a point to attend all the trade shows and replenish our stock in time. One word of advice to my peers: Be involved, don’t run the showroom from the boardroom, be there, on the floor. Shreyansh Kapoor, Kashi Jewellers, Kanpur
Impact of TRADE SHOWS
• First big physical trade event
• Positive COVID cases down, vaccinations up just before IIJS, JAS and COUTURE India.
• Big boost to industry
• All stakeholders impacted positively
We have bounced back from the pandemic days, in fact, we are now doing better than we did in the pre-COVID days. We had record sales this calendar year, better than the previous year. The industry activity halted for two months, re-started in June, and by September-October, things were much better. Pre-Diwali and Diwali has been a great season for us, and of course, IIJS gave a much-needed boost to the industry. For us too, it was a great experience. It was the first big physical trade show, and it was held in Bengaluru for the very first time. Industry players were eager to attend the show, and it gave rich dividends to all the stakeholders. If I had to give a suggestion to the industry, it would be this: take care of your employees, they are a very valuable asset. Ravi Kapoor, Kays Jewels, Kanpur
Festive season performance
• Extended festive season owing to heavy demand
• Bumper Navratri, Dhanteras and Diwali sales
• Big-time buying even after official end of festive season
• Festive season set to merge with coming wedding season
The pandemic has taught everyone many new lessons. The supply chain disruption and scarcity of workers in the industry is definitely something to think about. The industry as a whole has seen stiff competition in the last few years, so the only way to increase profitability is to increase your sales. Higher point of sale and post-sale customer satisfaction and retention is our goal. One happy customer goes a long way in our industry, where, till date, recommendations get you more business than any form of advertising. As for the coming year, well, the pandemic seems to be getting under control, the sales are high, the markets are bustling again and there is much liquidity in the system, which all point to a very healthy and hopeful next year. Tarun Jain, Royal Lifestyle Jewellers, Bathinda
Employee productivity
The early part of the year was bad for the industry, and the second wave made things worse. But, to be honest, we were already prepared for it. We developed and launched our video calling app during the first wave, and it helped us to boost the sales when the second wave struck. We were very happy with the response to our video calling app. The best performing category, according to me, has been diamond jewellery. I must say that through all the uncertainty of the year, our customers have been very loyal to us, and we, in turn, have done whatever we could to satisfy them. The pandemic has taught us how to cope with all the obstacles. It definitely taught me to use the digital medium for marketing to its full capacity, as everything has gone digital and everyone is habituated to getting everything at their fingertips in these uncertain times.
Abhishek Chanda, Kalasha Fine Jewellers, Hyderabad
Adoption of technology
• Industry more open to embracing technology
• GenNext jewellers far more willing and ready to adopt tech as a business booster
• Augmented Reality/Virtual Reality/digital kiosks in stores making inroads
• Customized apps all the rage
For me, this year has been great and we have broken all past records.The highlight of the year for me has been the realization that I am in the best trade.Our industry is 5000 years old, and till today, it has never collapsed. I had only heard this. but this time I witnessed it first-hand. In spite of all the problems and the lockdowns, we have done very well. We did 80% business in 60% of the time. Gold has proved itself as the asset of choice yet again; it will always be the preferred category. During the lockdown, we mined data of the past six years, and came up with interesting findings. We identified products which were getting wrongly stocked, we had a special team work on this and we changed the purchase pattern, which was old style.We came up with stock turn-around ratios and we started monitoring the ratios. We identified what was not selling during a particular season, and created a better cash flow. All in all, this has been a remarkable year. Tejpal Ranka, Ranka Jewellers, Pune
Online selling
• Industry divided over effectiveness of online selling
• Online sales seen more as a novelty factor
• E-commerce viewed as complementing in-store sales, at best
• Rs 50,000 ticket size widely accepted as limit beyond which people will not buy online
• Online sales viewed as total waste of time, effort and resources by a large section of the industry
• Online sales a flash in the pan, a desperate measure adopted during lockdowns, not likely to succeed, say several retailers
The year had a bad start. There were too many problems; every day brought a new set of issues. The guidelines kept changing, the timing of opening and closing shops kept changing, and things were not looking good. But we kept our hopes up, and even during the shutdown, we paid our employees, as they are our valuable asset. By August, the scenario changed totally, and there was renewed energy and optimism. In fact, there were record sales. One thing that was underlined yet again is that gold will always be a sound investment. Jewellers tried online selling during the lockdown, but it met with only limited success. It has not given good results. Online commerce will remain only a small part of this business, and only big chains will be able to maintain an appreciable online presence and sell online. It is not possible for small- and medium-sized jewellers to have meaningful sales online. Sanjay Jain, Amrit Jewels, Ludhiana
Lessons learnt
• Better inventory management
• Importance of timely replenishment of stock
• Recognition of employees as a valuable asset
• Acceptance of technology as an integral part of the business
We have recorded higher sales than in the pre-COVID period, and we are very sure that we will cross all previous records this year. Till March, before the second wave of COVID struck, sales were fantastic. We had come out with an offer of a weekly draw, which attracted our customers, and we achieved good footfalls and sales. The industry mood was also good, but as soon as the second wave came and the lockdown was announced, everyone was in a fix yet again. Fortunately, the situation improved, the third wave has not really come, and IIJS also helped the industry in a big way. Only serious players were there and both the exhibitors and visitors benefitted a lot from this. A great learning for all has been to always take care of the staff and the clients. We have always taken care of our employees and their families, regardless of the pandemic. Our staff has always supported us, and they know that whenever they are in need, their employer is there backing them. Vardhman Kothari, Kothari Jewellers, Jabalpur
Trends of the year
• Gold jewellery still the preferred choice of large sections of customers
• Plain gold, studded gold jewellery both selling like hot cakes
• Lightweight gold jewellery being preferred to heavyweight jewellery
• Diamond jewellery a fast-moving item
• Platinum beginning to make some inroads
2021started on a bad note, but it will end on a great note. By the middle of the year, the number of cases started coming down and sales started going up. The industry responded very well to the pandemic. It utilized the time it had during the height of the pandemic to prepare good collections. By the time the economy opened up, the industry was ready with creative designs and great pieces. Everything happened at the right time. All stakeholders responded well. Sales have been very good. In just one quarter, we have made up for the lacklustre sales of the rest of the year. In the summer, not too many weddings happen anyway. So, when the second wave struck, business would have been slow, even if it had not struck. Everything worked out well. The cases came down just at the right time, and IIJS also happened at the right time. Retailers could replenish their stocks for the extended buying season. Abhinav Rastogi, Swarna Ganga Jewellers, Mumbai
Outlook for 2022
• Industry unanimously bullish about 2022
• Strong and extended wedding season predicted
• Lightweight, trendy and global designs seen to rule the coming year
• Diamond jewellery expected to run neck and neck with gold jewellery
The world has learned a lot from the pandemic and also the thought process has changed drastically. First and foremost, we have learnt to prepare and plan for unprecedented times. I would really like to thank my vendors for standing by us during these tough times and cutting us some slack. As for the trends of the year, well, online selling is the new ‘IN’. Online sales did happen for some companies, but once the lockdown was lifted, people were keen on stepping out to seek a non- virtual shopping experience.Online selling is definitely here to stay, but only small-ticket items will sell online. Beyond a certain ticket size, clients want to feel the products, just to be sure before spending their hard-earned savings on it. I have a feeling that the younger generation that is just starting to buy jewellery will initially go to online platforms, but eventually, would want to stick to buying in stores. Sachet Prakash, Harsahaimal Shyamlal Jewellers, Budaun
Be the first to comment