News Bureau

October 18, 2017

Jewellers lowers Diwali growth outlook!

Diwali 2017 to grow about 15%!
Initially just week ahead of Dhanteras it was estimated that the Dhanteras 2017 to grow about 25% and thus Diwali season was estimated to remain more glitter than the previous. No doubt there are numbers of favourable sentiments yet, observed footfalls lowered this Diwali 2017 growth outlook!

According to Mr Somasundaram PR, Managing Director, India, World Gold Council, “Gold is at the centre of festivities and gifting traditions in India, particularly during Dhanteras and Diwali, and the wedding season that follows.

Currently, gold demand seems to be recovering after the withdrawal of the AML guidelines on jewellery buying. Policy reforms in quick succession in recent years have targeted transparency and the industry is transitioning under GST to a more organised structure, with long term benefits.

It appears that demand for gold jewellery and branded coins seems to be better than the past quarter particularly in relation to organised players. A good monsoon and stable gold prices are definitely encouraging consumers to make token purchases for the auspicious festival. The ensuing wedding season however, holds the key for the quarterly demand performance.

This year, digital channels have also increased consumer choices and have created a more conducive environment where one can save and hold vaulted gold.”

Mr Prasad Kapre, Director, Style Quotient Jewellery Pvt Ltd said "The season has proven to be extremely good for lightweight jewellery and gold coins so far, possibly due to relaxation of rules with regard to purchase below Rs50k surprisingly, also witnessing younger target customers making purchases for lightweight diamond pieces.

As buying sentiment is improving & market is moving up with every passing day, we are hoping to have a Diwali day with the mega blast.”

Mr Ishu Datwani, Founder, Anmol said, “It has been a slow start in terms of number of customers but better price points. We are expecting more customers as the day goes by and still expecting a 20% spike in Dhanteras & Diwali sales.”

By learning Dhanteras footfalls Mr Samir Sagar, Director- Manubhai Jewellers expressed, “Dhanteras has traditionally been an auspicious gold buying day and our customers are walking in as expected. The footfalls have been good with bridal buys and festive shopping adding an excitement in an already celebratory atmosphere.

This season, bangles and chains has been a well-performing category, with machine bangles and lightweight kadas of 25gms being the popular item for this season.”

Equally Mr Vaibhav Saraf, Director-Aisshpra Gems & Jewels learned that “The day started-off well and we have a good walk-in since 9 am. With the removal of PMLA from gems & Jewellery sector just ahead of the festive season, there has been an upbeat sentiment as this step minimized the compliances which helped the country to regain its fervor of festive gold buying.

This Dhanteras, there is a change in consumer-buying pattern. People are leaning more towards Jewellery as an adornment rather than investment; hence, we observed a rise in demand for diamond Jewellery besides gold. Overall, we have seen a sales growth of 10% as compared to last year.”

Initially jewellers had estimated the Dhanteras to grow about 25% YoY yet, post Dhanteras scenario lowers Diwali growth outlook too! Mr Aditya Pethe, Director, WHP Jewellers observed, “The market sentiments picked up steadily and there is the traditional gold buying spirit reinstated amongst buyers, thanks to the government for removal of PMLA at just the right time.

We saw a 10-15 % rise in sales and observed that the young consumers opt for lightweight diamond Jewellery. Keeping this in mind, we had a variety of offers on diamond jewellery like a free gold coin with every diamond jewellery purchase.”

Mr Saurabh Gadgil, Chairman & Managing Director, PNG Jewellers said on Dhanteras, “This year’s Dhanteras seems extremely positive. We are already doing much better than last Dhanteras till now, today’s Mahurat commenced post 2:30pm, and we have a feeling that it will only get better as the day progresses.

The market sentiment seems positive for both investors and buyers, it feels as if the tables have turned in the last couple of days, extension PMLA from INR 50,000 to INR 2,00,000 in the case of jewellery purchases have also assisted in fostering the positive sentiment. Both rural and urban customers are buying bullions, coins, gold and diamond jewellery in full swing.

There is a vivid indication of wedding jewellery buying this season; also young customers are buying silver coins and silver idols. It seems that the confidence of the customers is back, introduction of policies like the seventh pay commission have helped too.

Hence, we feel this year overall business will be up by 25 to 30% compared to last year. Customers can benefit immensely during this Diwali season as the industry is buzzing with offers, it is indeed a great time to be a customer. All these factors are in favor of an action pact Diwali, which the industry needs, considering the slowdown in the past few quarter”

Mr Sunay Gandhi, CEO, Pristine Fire and Partner, Vishal Diamonds said, “We expect good sales this season starting from Dhanteras. The fact that KYC requirement is no longer required for cash purchase of gold above 50,000 will boost sales tremendously. Younger people usually prefer light weight & affordable diamond jewellery which is fashionable and stylish at the same time.

People are spending between Rs 20,000 to 60,000 depending on how much they have saved. It is seen as a day to accumulate more wealth by Indian households. People are buying items such as Om or Swastik pendant or any form of jewellery to ensure that good luck enters their life on this day.

The Indian customers have started purchasing gold and diamond jewellery right from early morning. Affordable light weighted jewellery is in high demand in the market. Customers from various cities and towns in India who had placed their orders last week we are ensuring that they will get deliveries today.”

Ms Tanya Rastogi, Director, Lala Jugal Kishore Jewellers expressed, “We are waiting for Dhanteras with a watchful excitement and also a bit of nervousness as the gold industry has seen a tremendous downfall of 40% since last year. The demand slipped down further in September because of the GST roll-out and PMLA act.

Having said that, the gold buying demand in that phase had pent up and luckily for us, the government also brought in a correction in policies just around Dhanteras, because of this, we have seen a good surge of about 25-30% in sales since last year. The walk-ins are constant and this is indicating a promising Dhanteras.”

Major jewellery players avoided to express a growth in percentage term for this Diwali & Diwali growth over the previous year! Perhaps, jewellers are convinces about good sentiment!