WHP Jewellers fears long-term shutdown

By

Isabelle Crossley

Published
Mar 24, 2020

Following recent events and launches, jewellery brand Waman Hari Pethe Jewellers fears that a long-term lockdown would be highly difficult for the cash flow-dependent fine jewellery industry.

 
“A 10 to 14 day lockdown can be managed somehow, but a prolonged closure could be fraught with serious financial consequences as we are a cash flow intensive sector,” WHP Jewellers’ director, Aditya Pethe, told ET Bureau.
 
“Most organised jewellers rely on gold metal loans from banks, which are much cheaper [than cash credit] at 4.5% to 5%,” said Pethe.

“If the lockdown persists servicing these could be very stressful and some relief package, as for most other industries, would be needed.”
 
The brand had launched its ‘Pocket Store’ mobile shopping app at the end of February, 2020, WHP Jewellers announced on Facebook. The new app allows shoppers to browse and purchase from the brand’s full jewellery collection online on their mobile.
 
From February 15 to March 9, WHP Jewellers partnered with De Beers’ diamond brand Forevermark to hold an exhibition of jewellery made from 100 percent responsibly sourced ‘One-Carat-Plus Forevermark Diamonds’ at WHP Jewellers’ two showrooms in Mumbai.
 
Maharashtra, which has reported the highest total of confirmed coronavirus cases, totalled 107 confirmed cases so far as of Tuesday evening with 12 patients having been cured of the virus. The state is now in lockdown.
 
Not only are domestic jewellery sales down due to lockdowns across India and consumer fears of coronavirus, fine jewellery exports are also expected to drop by 10% to 15% due to the global pandemic, IndiaRetailing reported.