India's Jewellery Industry Optimistic About Rise In Demand, Even As WGC Registers Decline
The World Gold Council announced recently that India's gold demand in 2023 could fall 10 per cent from a year ago to its lowest in three years, as record high prices are dampening retail purchases.
However, India’s jewellery sector is optimistic about the demand rising with the forthcoming festival and wedding season. They opine that the demand for bullion and coins has observed a decline, however, the demand for jewellery is still consistent.
According to the WGC, a rise in worldwide prices may be constrained by the decrease in purchases in the second-largest consumer of gold in the world. The rupee may strengthen and India's trade imbalance may be reduced as a result of declining demand for imported gold. "We remain cautious about gold demand as it faces uncertainties due to elevated local prices and a slowdown in discretionary spending," said Somasundaram PR, regional chief executive officer of WGC's Indian operations.
Vaibhav Saraf of Aisshpra Gems & Jewels Gorakhpur said, “The market and the trends are changing drastically. The consumers have been exchanging their old jewellery for the new ones amidst higher gold prices. In order to serve our customers better and grow with them we have started to adapt to the new trend. We have started promoting old gold jewellery exchanges to give this behaviour a boost and maintain sales. 75 per cent of our stores are growing at 15 per cent when compared to previous year and we are also adding new stores this year hence the group sales too will grow in comparison to previous year.”
Vijay Soni of Mahabir Danwar Jewellers, Kolkata said, “Given the fact that we are in the middle of monsoon season which is traditionally a slow selling period for gold jewellery and also this year we have two months of shravan when many don't buy, the demand is quite stable. Also many people are expecting a correction in gold prices after a sharp rally and hence postponing their purchase. However if the gold prices maintain their higher trajectory in the coming months there is a strong possibility of higher old gold sales happening in lieu of new jewellery sales in the wedding season.”
Kamal Rastogi of Kamal Jewellers Dehradun shared valuable insights on coping strategies for the sector amidst the projected 10 per cent decline in India's gold consumption in 2023 by the World Gold Council. He advocates a proactive approach, urging industry peers to embrace digital transformation, introduce innovative designs, and emphasise sustainability. By fostering stronger customer connections and expanding into new markets, Rastogi believes the jewellery industry can navigate challenges and unlock new opportunities for growth and prosperity.
Raghav Rastogi of Jugal Kishore Jewellers By Rajan Rastogi Lucknow said, “The demand for new gold jewellery is stable so far. But yes, instances of exchange of old jewellery have increased due to rising prices, this might have an impact on fresh imports of gold bullion.”
