With gold prices touching their all-time high on Wednesday, jewellery majors were taking measures to attract more consumers. These included more category launches, lower-weight jewellery and store expansion, among others
In on Wednesday’s trade, the yellow metal opened at its all-time high price of Rs 30,315 per 10 gm in Mumbai, tracing gains on international exchanges. Bombay Bullion Association director Suresh Hundiya said: “Demand is very low at high prices.” However, at close, standard gold prices had moderated to Rs 30,280 per 10 gm.
“Consumer sentiment has been low. Besides, high gold prices have also affected sales,” said Tanishq Vice-President (Retail & Marketing) Sandeep Kulhalli. To respond to high gold prices and to boost sales, Kulhalli said, Tanishq was planning to offer lower-weight gold. Also, his company was currently offering 20 per cent off on diamond jewellery, he added.
He is hopeful of better sales during the Diwali festive season, as customers, who have stayed away from buying jewellery for long, would return to the market then.
The yellow metal moved up in the international markets on hopes that the European Central Bank would take steps to support the region’s economy. In the international markets, gold was trading at $1,642 an ounce.
“Sales have been lower by around 15 per cent this year due to gold prices being on the higher side,” said Popley and Sons Director Rajiv Popley.
More than jewellery, the general investment demand has been affected and investors might want to stay put with gold for some more time. However, major jewellery makers like Gitanjali Gems are focusing on making more choices available to consumers in order to expand their reach.
Gitanjali Gems President Abhishek Gupta said: “Even as our sales from old stores grew in line with the industry growth rate, we opened eight company-owned stores, 14 franchises and 20 shop-in-shops at 20 centres, to reach out to more consumers, in the April-June quarter this year. We are also introducing new categories of jewellery, focusing more on gold jewellery, unlike the diamond ones earlier.”
Even as gold fell from its all-time high level to close a tad lower, silver on Wednesday closed at Rs 56,440 a kg —1.33 per cent higher from yesterday close in Mumbai..
