Festive Season Ignites A Glittering Surge In Jewellery Sales
As the festive season unfolds in all its grandeur, there's a timeless tradition that shines brighter than ever - the love affair between Indians and jewellery. Diwali, the festival of lights, illuminates not just homes but also the jewellery counters across the nation. This season, as we embrace the joy and togetherness of the festivities, we explore the remarkable surge in gold and jewellery sales, the factors that fuel this demand and the implications for the jewellery industry and gold market.
Factors driving the demand
It's interesting to note that gold prices have surged by approximately Rs 10,000 per 10 grams in the domestic market, resulting in over 20 per cent returns since the previous Diwali, with rates now standing at Rs 63,115.
Multiple factors contribute to the surge in gold and jewellery sales during Diwali. MP Ahammed, Chairman of Malabar Group, explains, "Firstly, there is a positive consumer sentiment which boosts discretionary spend during the festive season. Therefore, we expect an increased demand for gold jewellery and other precious jewellery during Diwali. The recent softening of gold price is likely to boost volume-driven demand during the festive and wedding seasons."
Gold is an integral part of our socio-cultural ethos. Ahammed adds, "As there is pent-up demand in the market, we expect a demand surge in the festive and wedding season. Gold has emerged as a safe investment option and asset class to hedge economic volatility, gold jewellery is expected to witness robust demand. A prolific festive and wedding season augurs well for the jewellery industry, as the industry generates the majority of its revenue during that time."
A celebration of tradition and emotion
Dipu Mehta, Managing Director of ORRA, shares the anticipation and says, "While the year commenced on a positive note, we are looking forward to even more promising results in the second half, primarily due to the imminent celebrations, most notably Dhanteras, Karwa Chauth, Diwali and various festivals. As we embrace this season of togetherness, we hold a strong belief that our exquisite collections will deeply resonate with our valued customers."
The festive season not only spells celebrations but also provides a captivating canvas for the expression of emotions through jewellery. With expanded collections and designs, shopping for that special piece becomes a joyous experience, making the celebrations even more extraordinary.
