Hallmarked gold coins and bars of 22K and 24K are getting a boost from India’s thriving ecommerce industry, with sales surging 35-80% in the last financial year.
To be sure, the sales spurt across online marketplaces such as Amazon, Flipkart, Ajio and Tata Cliq is on a low base, but it marks a shift in customer preference for a category traditionally dominated by retail stores, said industry executives.
Malabar Gold & Diamonds, Kalyan Jewellers, MMTC-PAMP and Joy Alukkas are among jewellers selling 22K and 24K gold coins and bars, between 1 gm and 10 gm, on online platforms. A similar trend is expected in lightweight gold jewellery, according to the executives. “Amazon is seeing 84% year-on-year spike in hallmarked gold jewellery from brands such as Malabar Gold & Diamonds, PN Gadgil Jewellers, Joyalukkas, PC Chandra and KISNA, among others,” said Zeba Khan, director, fashion and beauty, Amazon.
Executives said they are adding inventory on these platforms to meet an expected rush of demand this festive season, especially during Dhanteras and Diwali. Amazon is also selling lab-grown diamond jewellery, said Khan. Investment demand for gold in the form of bars and coins is also on the rise due to prevailing higher prices. Gold was trading at Rs 76,768 per 10 gm on Monday. Sachin Jain, regional chief executive, India of World Gold Council said in the June quarter, sales of bars and coins rose 46% by volume to 45 tonnes, and 75% by value. “We are expecting much better performance in Q3 and Q4 as well. The geopolitical tension, interest rate cut by the Federal Reserve and the uncertainty in the global economy are unlikely to bring down the investment demand for gold in the near term,” Jain said.Kerala-based Muthoot Pappachan Group, which sells gold coins and bars through its own online platform and e-tailers like Amazon and Coin Bazaar, is expecting robust sales this festive season.
