In a break from last year, gold jewellery sales rose on the auspicious occasion of the Akshaya Tritiya on Tuesday, with big jewellers having witnessed an up to 30% spurt in sales, buoyed by a drop in prices.
Jewellers — including Tanishq, Kalyan Jewellers, PC Jeweller, Tribhovandas Bhimji Zaveri, Popley Group and Senco Gold — recorded higher sales than last year. Even many smaller jewellers performed better than last year, although the growth in their sales was lower, compared with the larger ones, at around 10%.
Jewellery sales, which started on a modest note in the morning due to Tuesday being a working day, picked up in the afternoon and continued well into the night, much to the relief of jewellers, especially the smaller ones.
Sandeep Kulhalli, senior vice-president of retail & marketing (Jewellery) at Tanishq told FE, “Over the past week, we have been witnessing a positive response from consumers as Akshaya Tritiya marks the most auspicious day to buy gold among several people. This year, customers have opted for plain gold jewelry across the chains, bangles and coins categories, including wedding jewelry. Compared to last year, consumer sentiments have certainly shown improvement.”
Kalyan Jewellers executive director Ramesh Kalyanaraman said his company has registered 30% growth in gold jewellery sales on Akshaya Tritiya over last year on “positive consumer sentiment”, supported by lower prices and “global fundamentals”. Domestic gold prices have declined by over 11% so far this year from a year earlier, aiding demand. The prices also dropped Rs 100 per ten grams to Rs 27,100 on Tuesday, tracking global cues.
Kolkata-based Senco Gold executive director Suvankar Sen said the footfall in outlets had been much higher in the evening than in the morning and he expected sales to rise 15% this year from a year earlier. Delhi-based Khanna Jewellers’, too, saw sales rising by 15% from last year.
Mumbai-based All India Gems and Jewellery Trade Federation Chairman Manish Jain said Jewellery sales were 12% higher from last year level by evening, although sales of gold coins and bars were down.
WGC mangaing director (India) Somasundaram PR said: “All indications so far suggest that gold sales have been much better than a year before, especially for the large jewellers. Buying behavious seems to have returned to the levels prevalent before curbs were imposed on gold supplies.”
Gold sales on Akshaya Tritiya, which fell on May 2 last year, were hit by official curbs on the precious metal supplies and consequent high premiums, with many jewellers in Delhi and Mumbai having seen close to a 20% drop in sales.