Indian jewellery chains bank on Gulf market for some glitter in this year’s festival sales

Indian gold jewellery chains with presence in the Middle East are banking that sales around the festival Akshay Tritiya this year will be a boom for business, trading body officials and retailers say.

The festival is an Indian Hindu festival believed to be auspicious for purchase of the yellow metal. The optimism on the Gulf market, especially the Dubai market, is also due to the fact that the Indian festival – falling on May 14 – coincides with Eid Al-Fitr this year.

The UAE operations of some of the Indian jewellery retail chains have also lined up special collections and attractive discounts to bump up sales in Dubai and the wider Gulf market amid apprehensions of a near washout in business in the Indian market due to pandemic-induced lockdowns and restrictions across the country.

“Naturally, Indian players would like to encash their overseas market for this year’s Akshay Tritya sales, along with the Eid festive shopping, due to lockdown in many states in India,” Surendra Mehta, national secretary of Indian Bullion and Jewellers Association (IBJA), told Arabian Business.

“After the wash out of Akshay Tritya festival sales due to national lockdown last year, the business was doing better post-Diwali 2020. However, due to declining sales after April 2021 in India due to lockdown in the wake of the second Covid-19 wave, Indian jewellers are left with no option but to concentrate on sales through their overseas sales outlets,” Mehta said.

The GCC market, with a large population of expat Indians – the UAE has the largest share of expat India estimated to be about 40 percent of its total population – is the largest overseas market for Indian jewellery chains.

Besides Indians, the GCC region also has a sizable diaspora from countries like Pakistan, Bangladesh, Sri Lanka and Nepal, which also represent large gold markets.

Malabar Gold, Damas, Liali, Joyalukkas, Tanishq, Tribhovandas Bhimji Zaveri, Kalyan Jewellers and Josco Group are among the Indian jewellery retail chains present in the Gulf region.

Jewellery retailers said in the pre-pandemic years, overseas sales accounted for only about 5-7 percent of their total sales.

“The industry expectation this year is that the overseas market sales could be much higher – at about 20 percent – as it coincides with the Eid festive sales,” Mehta said.

Tanishq – part of the Indian conglomerate Tata Group – and Joyalukkas are among the Indian jewellery chains which have announced special collections and discounts to prop up sales this festive season.

The Tata Group arm has launched a special collection called Akshayam and is offering up to a 25 percent discount on charges for gold and diamond items until May 15, while the Kerala-based Joyalukkas has announced free gold coins for purchase of gold and diamond jewellery for a minimum prescribed value.

“Gold is a sound investment. Also, on the occasion of Akshaya Tritiya, our customers in the UAE get to enjoy the same variety and privileges that have cemented our company’s reputation as the preferred shopping destination for the discerning jewellery buyer,” said Vandana Bhalla, marketing head – international business division, Titan Company, said.

Historically, jewellery retail chains do brisk business on the Akshaya Tritiya day as Hindus believe that buying precious metals brings prosperity and good luck to the family.

Courtesy: Arabianbusiness.com