Gudi Padwa 2024: High-priced gold prompts low-ticket sales, creates affinity for diamond and silver

Incentivised sale, lightweight designs, interesting in-store activities and even digital gold apps lead people to buy gold irrespective of high rates  

Mumbai: The Marathi New Year came in with an unforeseen challenge in the jewellery market in Maharashtra. Gudi Padwa, an occasion where the community engages in focused buying of gold jewellery, was hit by the recent sharp rise in price of gold. The Retail Jeweller spoke to leading brands from across the State and beyond and asked them to weigh in on Gudi Padwa in terms of jewellery-buying and what influenced consumers this year. 

Staggering price of gold 

There was State-wide unison on the trade hiccups as gold price shot up at short notice. According to Atul Ashtekar, Partner, Krishna Rajaram Ashtekar and Company Jewellers, Pune, the rate increased by 21% in a week to reach Rs 71,781 per tola (11.6638 grams) on April 9, causing a 35% decline in bullion sale. Regional chain store brands such as P N Gadgil & Sons found a middle ground with reduced weight of their latest temple jewellery collection. “We managed to achieve substantial reduction in jewellery price, with our pieces now weighing 30% to 40% less compared to their counterparts from three to four years ago. This approach upholds the beauty of traditional designs and ensures affordability,” said Aditya Modak, Co-founder, Gargi by P N Gadgil & Sons, Pune. 

Mohit Sheth, Partner of Batukbhai Sons Jewellers, Nagpur, reasoned that high-ticket jewellery ranges had a roughly stable demand, and with the launch of their bridal jewellery showroom in Nagpur on the day of Gudi Padwa, the brand gained traction unlike their other stores that continued to face a more modest turnout due to the price factor.  Saurabh Dhomne, Partner, MT Dhomne Jewellers, Wardha, said, “Since last year, there has been a 20-25% slump in gold, unit-to-unit. The steep price graph is hard to digest for buyers, and if the graph stabilizes a bit and continues for a good 1-2 months, the demand will return.” 

Tejpal Ranka, Partner, Ranka Jewellers, Pune, said that customers with weddings around the corner are buying jewellery irrespective of the price rise. “Owing to our 70% buyback facility, we saw exchange and buyback more than new jewellery sale. More people gravitated towards diamond. They think that if the budget stretches beyond measure, it’s wiser to get a different look and feel from diamond jewellery,” he added. 

Other brands such as Jagannath Gangaram Pednekar Jewellers, Mumbai, Govind Dande and Sons Pvt. Ltd, Nashik and MT Dhomne Jewellers faced a similar traction in demand for diamond jewellery. While Saurabh Dhomne experienced the demand uptick from urban buyers in the Tier-3 market of Wardha, Anil Dande, Director, Govind Dande and Sons Pvt. Ltd, Nashik said that after consumers satisfy their quota of gold jewellery purchase, they are turning towards diamond.  

“Due to rise in gold prices, the buying budget has acutely affected purchases, leading to a flat demand in gold and a 30-40% rise in silver jewellery demand,” said Anil Bafna, Proprietor, Swarnaganga Jewellers, Mumbai. 

However, rising prices prompted many to invest as soon as possible to reap the benefits of appreciation in future. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, Pune said, “We saw good response across categories, and surprisingly, it started right from the morning of Gudi Padwa.” Sheetal Ranka, Co-founder, Rare Jewels by Ranka, Pune said that the weather played an important role in boosting buying sentiments on the occasion. 

For Mayur Shahane, Owner, Mayur Alankar Jewellers, Nashik the brand’s digital gold app made up a lot for the volatile demand. “People are taking more interest in gold because the returns show promise. On an average, 50 transactions happen daily in the app, with an upper cap of Rs 2 lakh for investment. During Gudi Padwa, the rate of investment in gold increased by 10%,” said Shahane. 

Disha Shah, Founder of DiAi Designs, Mumbai pointed out the increasing demand for lab-grown diamond jewellery. “Our sales increased four times over last year. We have also noticed that 50% customers are more prone to purchasing lab-grown diamonds without speaking to us directly about what these diamonds are, indicating positive awareness and self-education,” Shah said. 

Activities to drum up demand 

Ranka Jewellers engaged in a yearly scheme from Gudi Padwa to Akshay Tritiya that gives some reprieve on price. This time, the brand gave a discount on making charges as it witnessed more products in lightweight and Italian categories selling out.  

Rohit Bitla, Owner, Suresh J Bitla Jewellers, Solapur said the brand capitalized on the pro-bullion mentality of the city’s market. “On Gudi Padwa, 30% jewellery is sold, and 70% bullion is sold in Solapur. Gold coins enjoy high demand, but mostly don’t make the HUID certification cut, as many unscrupulous jewellers sell 20 karat gold coins in the name of 24 karats. We created Vedhani gold rings out of gold coins and certified them with HUID. Complementary campaigns about HUID of 995 gold bullion before Gudi Padwa created a buzz for this product,” explained Bitla. 

Jagannath Gangaram Pednekar Jewellers had two collections for Gudi Padwa, one of which was Amrapali, a lightweight jewellery range in 110-150 grams of gold jewellery. Sheetal Ranka said that a shift to diamond and polki jewellery benefits the buyer, because the gold rate doesn’t affect the overall costing majorly. “We had an offer on 25% flat discount on making charge and 50% off on diamond and jadau making charges. In each of our 12 stores in Pune, we held activities such as pottery making to enhance the purchasing experience,” Ranka added.   

Pointing out a 15% increase in footfalls, Anil Dande emphasized diverse inventory as key to business growth in such a challenging scenario. “Even if your stock quantum is low, your product variety has to be good. We explored multiple markets such as Rajkot, Kolhapur and Kolkata to bring in variety in inventory over making, design and weight,” said Dande.  

Response beyond Maharashtra 

Gold or not, Maharashtrian communities outside the State remained bullish about buying some sort of jewellery. For Milan Shah, Director, Kalamandir Jewellers, Surat, big cities such as Surat and Ahmedabad, notched up only 50% and 40% business respectively as compared to 2023. “Our lab-grown diamond brand Svaraa Jewels, which had opened a store two months before Gudi Padwa in Mumbai, had April 9 as the best single-day opener with walk-ins starting since the morning. People bought routine wear jewellery in a price bracket of Rs 60,000-70,000,” Shah said.  

Similar is the opinion of Nishit Begwani, CEO of Touch925, a silver brand from Ahmedabad. Between 2023 and 2024, Touch925 witnessed an impressive 27.3% increase in Gudi Padwa sales, with high demand for tailored products such as the Ram Mandir miniature and an Evil Eye Collection inspired by Generation Z. “As gold prices go up, Generation Z is looking at other types of jewellery for self-expression such as trendy silver jewellery and accessories,” added Begwani. 

Delhi-based DRK Jewels also experienced customers gravitating towards more intricate and culturally significant designs to mark the occasion. “Our sales have surged in lightweight jewellery as customers seek convenience in sporting more versatile items, as opposed to sticking to gold,” maintained Deepak Khanna, Owner, DRK Jewels. 

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