Demand in India has gone down and the retail level walk-ins have definitely reduced due to the coronavirus scare, which may further worsen.
As coronavirus scare has spread uncertainty across sectors and industries, the gems and jewellery industry has also felt the pain. The Covid-19 pandemic has made people stay back at their homes and there is very little demand in the retail jewellery market. “Demand in India has gone down and the retail level walk-ins have definitely reduced due to the coronavirus scare, which may further worsen,” said Saurabh Gadgil, Managing Director, PNG Jewellers. Gudi Padwa is around the corner and we hope things will improve, however, it looks unlikely that they will, he added. Only those with weddings in their family are currently buying and there is an exceptional amount of uncertainty from all aspects in our country right now, making wait and watch to be the way forward for everyone, he further added.
Empty markets have seized the lustre of the jewellery stores, bringing their sales significantly down. It won’t be wrong to say that there is virtually no footfall in these stores. Retailers are doing only 20-25 per cent business across the country, All India Gem And Jewellery Domestic Council chairman Anantha Padmanaban told PTI.
Meanwhile, oil and gold prices are continuously fluctuating in the global market. While gold prices have surged quickly, the oil prices are going through a free fall. On top of that, Russia, UAE and Saudi Arabia are boosting supply, further escalating the oil price war. Travel restrictions across the globe have also brought trade and businesses to a standstill. Stock markets in India and other major economies have seen a bloodbath, wiping out investors wealth to unimaginable proportions and yet having no clarity when things will improve.