CHENNAI: This Akshaya Tritiya, jewellers expect 10-15% growth in sales compared to last year, despite higher gold prices. Currently, 10 grams of 24-carat gold is priced at around Rs 31,000 — higher than last year’s rates, which hovered at Rs 29,000.
With positive sentiments, customers are looking to purchase lightweight jewellery to put up with the high prices.
“We have been regularly purchasing gold every year for the occasion. Owing to higher prices, we will settle for lightweight jewellery instead of gold for investment purposes,” said Sharanya R, a consumer in Chennai.
Jewellery chain ORRA, which also sells online, sees increased purchases for self and more diamond-based jewellery being bought this season.
“Last year, we had a good Akshaya Tritiya because of the pent-up demand after the slump during demonetisation, and pre-emptive purchases because of GST. This year, owing to higher prices, while we see an uptick in demand, we expect growth to be in the lower double digits,” said Vijay Jain, CEO, ORRA.
Large jewellery players, however, add that this year is slated to be better on the back of the market stabilisation in the aftermath of GST-related uncertainty. NAC Jewellers, which usually sees a 5-10% increase every year, predicts the market will correct and show 10% increase in footfalls. Ahammed M P, chairman, Malabar Gold and Diamonds, said, “We are confident about this year and expect more sales than previous year. The industry has come back to normalcy after hiccups like demonetisation and GST and there are a number of positive triggers.”
Players add that the shift from unorganised to organised sector and customer-centric initiatives will contribute to a boost in sales. T S Kalyanaraman, chairman and MD, Kalyan Jewellers, said, “While many big-ticket wedding buyers would time their purchases to match the auspicious Akshaya Tritiya, others make small token purchases in the lightweight section.”