Gold rules the roost with 10-20% rise in overall sales on Akshay Tritiya

India’s love affair continued this Akshay Tritiya as well. The gold-hungry consumers made a bee-line to their trusted jewellers in the country to make the auspicious purchases. The continued weak gold prices, relaxed import duty norms, drop in gold prices led to a rise in Akshay Tritiya sales this year as compared to last year, when economic and political scenario, stringent policies refrained people from making purchases on Akshay Tritiya. “This year, more thrust was on buying gold jewellery,” echoed many jewellers from the country. “As compare to 2014, we had good footfall this year. We had 15 per cent rise in gold jewellery sales as compared to last year, while gold coins sales was up by 5 per cent. We also had better sales of diamonds this year as younger generation prefers diamonds over gold for everyday use,” said Vikram Verlekar, MD, Ulhas Jewellers.

Even M. V. Waghadkar & Sons Jewellers had good business this year vis-à-vis 2014. Aniket Waghadkar, Sales Incharge, M. V. Waghadkar & Sons Jewellers said, “Overall, there was 30 per cent increase in sales this year at our stores. We sold more gold jewellery as there was growth of 20-25 per cent in sales. Also, we had good demand for 2-3 carats solitaires.”

On jewellery demand, Rajeev Sheth, CMD, Tara Jewels said, “Akshay Tritiya is an auspicious occasion and people often buy jewellery to mark the occasion. This year we have observed a demand of traditional bangles and necklace sets in gold jewellery and lightweight daily wear pieces in diamond jewellery. The ticket size has definitely increased this year in comparison to the last year.”

Sachi Singh,Executive Director, Motiwala & Sons and Owner of Brand Kawachi was happy as sales were high at their stores. She said “Actual sale on Akshay Tirtiya was quiet good, lot of people bought gold coins, temple jewellery was highly appreciated and temple jewellery was really invested by the youngsters who did not want to invest in coins. Overall, we had good sales.”

On the regional level, South India always leads with maximum contribution in overall sales. This year, too, jewellers from South India had brisk business. Ramesh Kalyanaraman, Executive Director, Marketing & Operations, Kalyan Jewellers said, “Kalyan Jewellers has registered 30 per cent growth in gold jewellery sales during this Akshay Tritiya compared with last year as there is a positive consumer sentiment due to stable gold prices hovering around the Rs. 27,000 mark for 10 gms, supported by global fundamentals. Gold prices have declined by nearly 10 per cent from a year earlier. We have seen robust increase in all our categories including chains, bangles and rings. We have also seen good advance bookings for bridal jewellery.”

Gold prices in Mumbai declined by Rs 45 to Rs 26,695 per 10 grams, while in Kolkata, gold fell by Rs 105 to Rs 27,105 per 10 grams, while in Chennai it declined to Rs 27,020 per 10 grams from last close of Rs 27,200.

It wasn’t just the brick-and-mortar stores that consumers rushed to buy gold but e-retailers too had a good business as there were a number of discounts and offers available to the buyers. Hardik Kapoor, Founder, Jewelsify.com said “The Sales were actually pretty good on the occasion of Akshay Tritiya. There were quite a few purchases of Gold/Diamond jewellery and the designs were appreciated. There was 15 per cent discount on all the products for the occasion so that people are able to celebrate Akshay Tritiya without having to worry about money. And, I am quite pleased to mention that it has really been received well by all our customers.”

Bluestone.com sold the diamond and studded jewellery the most on the eve of Akshay Tritiya. Elated with good sales, Gaurav Singh Kushwaha, CEO and Founder, BlueStone.com said “We have observed a six times increase in sales on this Akshay Tritiya. The response has been beyond expectations.”

Positive sentiments coupled with drop in gold prices helped buyers to rush to the jewellers. “This Akshay Tritiya, we achieved an increase in jewellery sales of 15 to 20 per cent in volume terms. As is traditionally the case, we have largely witnessed the sale of gold jewellery. The growth this year has been driven by the overall mood of optimism in the Indian economy after the Narendra Modi government took office. Also, this year we had reduced “making charges” to as much as Rs. 299 per gm as a part of the festive offer which we believe too has contributed to the rise in volumes,” said Rajeev Sheth, CMD, Tara Jewels.

Though BSE and NSE had extend hours for buying ETFs, gold ETFs did not see much of buying as the demand remained lucklustre.

On future market sentiment for gold, Ramesh Kalyanaraman, Executive Director, Marketing & Operations, Kalyan Jewellers said “We expect gold demand to be strong in 2015. Budget announcements to monetise houshold stocks, coupled with a higher number of auspicious days than last year will provide a positive environment for gold in 2015.”