Gold rush: Kochi outshines Thrissur

Despite lack of demand, many shops are coming up

In spite of shooting prices, gold is one of the flourishing businesses in Kerala today as indicated by opening of swanky new showrooms with global standards not only in cities like Kochi but in smaller towns.

In a chorus, jewellers say that sales have dropped by almost 50 percent due to increasing prices in recent times, but new jewellery shops are opened at some place or the other in the state everyday. As an offshoot of the vibrant market, customers have acquired new tastes with latest fad being for diamonds and white gold.

The dynamics of gold market in the state has seen Kochi rising as the capital of gold business relegating Thrissur, the traditional gold jewellery hub for decades, to the second spot. Within the city limits of Kochi, there are as many as 85 jewellery shops and a dozen of them are of global standards.

Showing the importance of Kochi, a number of popular gold business houses have queued up to set up business here. An official of a Gulf-based jewellery group said that they were looking for a large space on M G Road, but it was very difficult to find land. With 25 jewellery showrooms, M G Road has become the golden street of Kochi.

Among the two major groups that are opening their business in Kochi are Joy Alukkas and Malabar Gold. Joy Alukkas will commence operations soon while an eight-storey building of Malabar Gold is now under construction on M G Road.

T R Krishan, president of the city unit of All Kerala Gold and Silver Merchants Association, said that in Ernakulam district itself 650 jewellers are functioning.

He admitted that business had not been all that bright and exchange of old ornaments was the main activity of most of the jewellers. "With recurring expenses like electricity bills and salaries increasing, they are keeping themselves busy." According to him, advertisement cost too is last but not the least of their concerns.

Joy Alukkas is now planning to open 100 showrooms in India by 2008 and most other groups are planning an entry into Kochi. A Delhi-based group is planning to open a gold souke in which around 100 famous jewellery groups could be accommodated along with other facilities like food courts, Internet cafes, children game parks and theatres.

As Keralites are a game for new trends in jewellery, despite their fondness for traditional designs, most of the major showrooms have separate counters for imported designs.

Krishnan said ornaments from Singapore, Italy, Australia and the Gulf were now very popular in the state along with traditional Indian collections from Jaipur, Agra, Delhi, Kolkata and Hyderabad. To attract all sections, showrooms have separate wedding collections along with sections for teenagers and even for males.

According to estimates, about 10 tonne ornaments are being sold in Kerala per annum. But according to World Gold Council, total annual sale of gold in Kerala for all purpose is around 70 tonne while the Indian market is around 700 tonne.