A dip in gold prices coinciding with the current festive fervour have made not just consumers of branded jewellery jump into a buying spree but have also made manufacturers seek a reversal of fortunes this year.
After being hit by high prices in September, manufacturers are now expecting a 15 to 20 per cent growth in sales volumes while growth in value terms is expected to be nearly 35 to 40 per cent above last year. Gold jewellery sales, according to industry experts, are likely to remain buoyant for the next couple of months with the festive season being followed by the wedding season.
Softening prices
According to industry sources, gold prices in Kolkata which had touched a peak of Rs 29,000 for ten gram during the second week of September (September 15-20) have now softened to Rs 26,710.
“Sales during June and the first two months of second quarter (July and August) this year were slow with people holding back. The mood was to wait for prices to come down. With the current downswing, we expect customers to take to buying jewellery again,” Mr Bachraj Bamalwa, Chairman, All India Gems and Jewellery Trade Federation, told
Puja sales
With increasing preference for fashionable and light-weight jewellery, as against traditional designs, branded jewellers are expecting a good demand this season.
“In Kolkata, there has been a distinct jump in sales during this Navratra period compared to early September when prices were high and because of the Shaad (considered inauspicious) period,” Mr. Sandeep Kulhalli, vice-president (retail and marketing), Tanishq, said. Festive sales in eastern India contribute almost 20 per cent of the company's total sales during this period.
Kolkata-based Sawansukha Jewellers too anticipates higher demand this season. According to Mr Siddhartha Sawansukha, CEO, Sawansukha Jewellers, the company is anticipating a 25 to 30 per cent growth in sales on a month-on-month basis over the next two-to-three months.