This Akshaya Tritiya, expectations of jewellers are high due to a marginal dip in gold prices compared to last month. In April, sales volume decreased by around 20 per cent, although there was an increase in gold consumption in value terms due to escalating gold prices.
The jewellery retailers are expecting Akshaya Tritiya to boost the purchase of the yellow metal, contributing to growth in sales by more than 30 per cent over FY 23-24. They are also expecting an increase in footfall along with average transaction value compared to previous years.
“The sale of gold in value terms is likely to surpass last year’s levels due to increased rates and we also foresee an increase in sales volume. The industry should be able to achieve a growth of approximately 10 to 15 per cent in quantity terms year-on-year and a 35 to 40 per cent growth in value terms year-on-year,” said Dr. Saurabh Gadgil, chairman and MD, PNG Jewellers.
Given the prevailing economic and market conditions, the industry is expecting an increased emphasis on gold as an investment asset rather than purely ornamental jewellery.
“We anticipate purchases in the form of gold coins, bars, jewellery, and ticket purchases through digital gold buying platforms. Indian households have a strong cultural affinity for gold, and the appreciation in prices has further strengthened the demand for gold as an investment asset, resulting in increased consumer interest in Gold ETFs. Given the strong cultural connect, any short-term softening of gold prices could see record gold demand this Akshaya Tritiya,” Sachin Jain, regional CEO, WGC.
“With a price point of Rs 70,000, we anticipate strong sales during Akshaya Tritiya. I don’t believe it will impact sales volume either,” added Vipul Shah, chairman, GJEPC.
Geopolitical risks, central banks improving their reserves, and persistent inflation have resulted in a fluctuation in gold prices over the last month. This has caused mixed feelings about customers’ intentions to spend despite the ongoing wedding and festive season.
“The recent fall in gold prices ahead of Akshaya Tritiya is certainly promising, as it is likely to stimulate demand that was impacted by the recent spike in prices. While the fluctuating gold prices can deter some consumers, the current trend suggests a positive outlook for boosting volumes. Additionally, the consistent demand for coins and bars, as observed in previous years, indicates a stable market sentiment in this segment,” stated M.P Ahammed, chairman, Malabar Group.
Resonating similar thoughts, Vishnusharan Bhatt, MD, Bhima Gold Pvt. Ltd. said, “With the gold prices stabilizing over the past few weeks we have seen a return in consumer confidence reflecting a growing inclination towards partaking in gold transactions once again. The sentiment of resilience among consumers towards purchasing gold during Akshaya Tritiya persists.”
The consumer mindset is evolving. In the past, it was a straightforward exchange – a fixed amount for a certain quantity of gold. Today, customers are willing to trade a portion of the quantity for added services, intricate finishes, and a diverse range of products even for traditional festivities.
An interesting trend this season is the rising demand for everyday jewellery characterized by its minimalist, lightweight, and ethically sourced nature.
“We think by focusing on the customer’s problem by encouraging more lightweight smaller ticket value purchases, we are being true to the customer,” Ajoy Chawla, CEO of jewellery division, Titan.
“Over the last few years, another trend we have seen is a rise in younger consumers buying lightweight gold and diamond jewellery even for festivals. We expect this trend to continue on Akshaya Tritiya as well,” added Vishnusharan Bhatt.
However, adding a different perspective, M.P Ahammed said, “We’ve observed a trend where customers are opting for wedding jewellery and allocating their budgets towards everyday wear jewellery.”
“We’re seeing a shift towards conscious buying – customers are seeking pieces that hold meaning and can be passed down,” added Tarang Arora, CD & CEO, Amrapali Jewels.
Resonating similar thoughts, Amit Pratihari, VP, De Beers Forevermark said, “There is also a growing demand among consumers for high-quality solitaire diamonds.”
Along with introducing new collections, jewellery retailers are also running a slew of offers to attract customers like discounts on advance booking and making charges, cashback, and free gifts.
“We have launched gold beans in two options – half gram and 1 gram – to lure young customers along with focussing more on bangles and necklaces,” said Suvankar Sen, MD & CEO, Senco Gold & Diamonds.
“For Akshaya Tritiya, we have introduced a new collection of contemporary daily wear jewellery inspired by designs from around the world offering 10,000 designs. In addition to this versatile range, Tanishq will be hosting a series of engaging and interactive styling sessions at its select stores,” added Chawla.
