FESTIVE BUZZ: old sales up 15 per cent despite high prices

The buying during the morning trade remained subdued, but it picked up later as eager shoppers indulged in token buying, while some took delivery of their wedding jewellery. There was more demand for coins compared to jewellery. Even organised players are expected to have seen better sales as quality and better designs at competitive prices attracted more footfalls. Unorganised jewellery players in India – the world’s second biggest buyer of the precious metal – make up for roughly 70 per cent of the country’s gold sales.

Dhanteras is considered an auspicious day for buying gold, silver and other valuables and is largely celebrated in northern and western parts of India. The buying continues till late night. “Consumer demand has revived on reports of further increase in gold rates up to Rs 35,000-40,000 per ten gram in the coming weeks due to weak rupee. We estimate sales to be higher by up to 10 per cent than the year-ago,” All India Gem and Jewellery Domestic Council (GJC) Chairman Nitin Khandelwal. Gold prices are ruling high at Rs 32,690 per 10 gram on Monday in the national capital as against Rs 30,710 per 10 gram on the Dhanteras day in 2017.

“Feedback from the industry suggests that though footfalls seems to be good, demand could be moderate,” World Gold Council (WGC) India MD Somasundaram PR said.

Kalyan Jewellers Chairman and Managing Director TS Kalyanaraman said, “We have seen positive momentum this Dhanteras and are expecting 8-9 per cent increase in revenue over last year based on early data.”

The key contributors for this increase is the steady shift of clientele from unorganised to organised players like Kalyan, he said. The jewellers operates 100 stores in India.

“We are seeing growth all across our stores. Footfalls are gaining momentum from late afternoon. We are expecting better sales and a healthy double-digit growth,” Titan Company Sr VP (retail and marketing jewellery division) Sandeep Khulhalli said.