homemarket Newscommodities NewsCommodity Champions | India's jewellers brace for festive season amidst mixed expectations
Commodity Champions | India's jewellers brace for festive season amidst mixed expectations
While India's jewellers are gearing up for the festive season with optimism and elaborate plans, there is an underlying concern about the potential drop in domestic demand. The industry's ability to adapt to changing circumstances and leverage the cultural significance of gold during festivals will be key to their success during this crucial period. As the nation eagerly awaits the festivities, the jewellery sector remains hopeful that the holiday cheer will indeed re-ignite the demand and bring prosperity to this cherished industry.
The festive season is a time of joy and celebration in India, marked by grand weddings, auspicious occasions, and a surge in gold jewellery purchases. India's jewellers, despite facing a challenging year with declining exports from major players like the US and China, are banking on the domestic demand to turn things around this festive season. However, amidst the holiday cheer, there are concerns that the World Gold Council's estimate of a potential 10 percent drop in domestic demand, pushing it to 3-year lows in 2023, could be a dampener for the industry.
Colin Shah, Kama Jewellery, expressed optimism about the season ahead, citing the high number of weddings as a reason for hope.
He stated, "Most of the jewellers are very optimistic that the season will be strong because the number of weddings is at a very decent level. So we are optimistic about the season ahead, but the year so far has been a little rollercoaster in terms of demand."
Baby George, representing Joyalukkas Group, shared their excitement for the festive season and their strategy to attract customers.
He said, "Every festival season is very special for us because we give special festival offers. We are planning to have special festival offers, sales. We have 8-10 times more sales than the normal average sales during festivals. So we expect the same type of revenues across the country this festival season as well. We are looking forward to the festival season and have made elaborate arrangements."
Dileep Narayanan, representing Malabar Group, acknowledged the volatility in demand but remained hopeful about the festive season.
He stated, "The demand has been very volatile. Having said that, as the festive season is coming up, we should see some good business coming up. As far as gold price is concerned, it has been very volatile. During the festive season, we do see very good demand. We are stocking up retail stocks for Diwali and then upcoming festivals."
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