Buyers take a shine to gold, precious jewellery this Dhanteras

All that glitters is gold this festive season, as shoppers return in droves to jewellery stores even as they thumb through their phones to check for even more options. Gold, silver, and precious stones are witnessing an unprecedented surge in sales across both online and in-store shopping, and the occasion of Dhanteras, marking the first day of the five-day Diwali festival, and seen as an auspicious day to buy both jewellery and utensils, is adding lustre to the lucre of jewellers hoping that their luck has finally changed.   

Richa Singh, Managing Director India at Natural Diamond Council, an alliance of the seven largest diamond miners globally notes, “As people gear up for the festive and the wedding season, the sales have picked up and we are witnessing growth that can be compared with pre-pandemic levels.  We have noticed that in the last several weeks, we have had more than 10 million visits to our website and that alone speaks of the curiosity consumers have around diamonds.”

And it’s not just precious stones, as precious metals have always been on top of the pile. “Due to deep sentiment and traditional attachment, gold has always been in high demand during this time of the year. Also, with the unlocking of markets across the country and festivities, the consumer sentiment is positive towards buying and investing in gold and silver coins,” says Anika Agarwal, President (Consumer Business), MMTC-PAMP.  

Suvankar Sen, CEO, Senco Gold and Diamonds, agrees, saying, “In the last few days, we have seen increased footfalls at our stores, shortlisting their products for purchase on the day of Dhanteras. I would call this a kind of ‘Euphoria marketing’ as people want to celebrate this festive season on a high, after two years of mental anxiety and challenges. So these pre-booked or pre-selected jewellery are getting delivered in large numbers. Also, there are floating customers like every year.”

And speaking of floating customers, there’s been increased traction in online buying, with Sen pointing out, “We are also getting a good response from our online channels, contributing almost 5% of total business. We are witnessing a 30-35 percent increase in Y-O-Y sales this year, and up by 10-15% compared to 2019 numbers. In this digital era, people shopping online prefer neck and earpieces over bangles as those are better visible on screens.”

And while even the idea of digital gold is being ever-more refined in the minds of consumers, Agarwal says that there is a strong demand from Uttar Pradesh, Punjab, Madhya Pradesh, Bihar, Jammu & Kashmir, Maharashtra, and Tamil Nadu for bullion and related products. She states, “We are looking to grow 2X year on year with our strategic partnerships with jewellers across these states, and by expanding our d2c channels. The Oct-Dec quarter accounts for 35-40% sales for us every year and we are poised to increase our market share substantially during the Dhanteras/Diwali period.”

Singh notes that there is already a surge in exports and the industry is confident that it will achieve the export target of $US43.75 billion this year.  “The Natural Diamond Council conducted research this year globally on millennials and Gen Z on the desirability of diamonds, and the analysis revealed that consumers focus on items that carry emotional symbolism and value is heightened during this period as we continue to endure the effects of the pandemic,” she says.

Sidharthe Jain, Director, Sales & Marketing, Silverline Jewellery, which has both a retail and online presence, concludes, “We’re seeing phenomenal numbers this Diwali season, much higher than even pre-Covid times. So revenge buying is very very real. Customers are using retail as therapy as things return to normalcy, and there’s been a behavioural shift in the approach towards shopping for things of value – especially jewellery. Our customers are less guarded and spending more, with the mindset of – 'if not now, then when'. While some might argue this is a short term trend, we believe it’s here to stay!"