Indian jewellers gear up for festive season, expect boost in sales

By

Maverick Martins

Published
Oct 20, 2016

Jewellers are offering discounts of up to 50% by charges to attract consumers in the ongoing festive season, in the hope that the surge in rural demand will more than make up for the almost 10% higher gold prices this year, high import duties and a closer watch by the tax authorities on sales.

"The (recent) drop in gold price will definitely drive demand this festive season. Better monsoon has raised hopes of a better crop this year and this is expected to be reflected in this year's festive buying," said Somasundaram PR, managing director, World Gold Council India.

Higher discounts can also help avoid mandatory submission of PAN by customers.

The government had on January 1 made submission of PAN mandatory for jewellery purchase worth 2 lakh and above, which, according to jewellers, has affected gold sales in the country by 10-15%.

The organised sector dominated by the likes of Titan Company, through its jewellery business Tanishq, and PC Jewellers, expects a healthy volume growth during the festive season.

"There is an overall improvement in customer sentiment and we see volume growth of 15-20% in the current festive season compared with the same time last year," said Sandeep Kulhalli, senior vice president (retail and marketing) at Tanishq. "We are seeing customer preference for large jewellery sets," he said.

Platinum, about 9% cheaper than gold, may also see a spurt in sales. Platinum Guild International (PGI) has introduced bangles, chains and other items, with prices beginning at Rs 50,000, and a bridal collection priced below the Rs 2 lakh threshold that triggers PAN disclosure.

"We are expecting a 25% growth this year," said Vaishali Banerjee, country manager, India at PGI.

Meanwhile, Kolkata-based Senco Gold & Diamonds is sponsoring a TV soap opera that revolves around a family that is engaged in gold trade, resorting to an innovative attempt to shore up sales during the festive season. 

"We are showcasing some of our exquisite gold pieces in the serial to lure customers," said managing director Suvankar Sen.