On the auspicious occasion of Akshaya Tritiya 2019, jewellers across the country witnessed a 30% rise in footfalls as compared to last year. In terms of sales, there has been around 15 to 20 percent growth over last year Akshaya Tritiya. The reason behind this spike in demand was aided by a stable gold price and the upcoming wedding season. This comes as a huge relief to the industry which saw a lukewarm response last year due to corruption and shutting down of several jewellery chains. The increase in sales and a spike in demand is proof that consumers have regained confidence in the industry.

Anantha Padmanabhan, Chairman, All India Gem and Jewellery Domestic Council (GJC) said, “Akshaya Tritiya is an auspicious occasion to buy gold and traditionally Indian customers look at these festivals to buy gold. We saw a boost in the sale of over 10 to 15 percent higher, as compared to last year’s gold and jewellery sales on Akshaya Tritiya day. Due to the long wedding season, this year the gold and jewellery sales have been pleasing on Akshaya Tritiya. Customers are benefiting, since this year the gold prices are low. The sales numbers are encouraging across the country.”

Increase in Gold Jewellery Sales

The demand bounced back after a gap of two years, despite the ongoing Lok Sabha elections. Offers and discounts coupled with a fall in the gold rates lured the customers to the stores on Tuesday. Malabar Gold and Diamonds was offering 50 per cent off on jewellery-making charges, while Tanishq was giving a discount of up to 25 per cent. Rivana Gold and Diamonds offered 100 percent discount on making of jewellery.

In the northern market, consumers found Akshaya Tritiya as an occasion to start their wedding jewellery purchases, while South and West went ahead with their token purchase on account of the auspicious day.

Shreyansh Kapoor, Vice President, Kashi Jewellers said, “We are receiving heavy footfall as this year’s Akshaya Tritiya has one of its most auspicious mahurat after 2003. Also, our conversion rate is higher than last year. The offers we had put on gold and diamond purchases also attracted customers to make the purchase. Mostly, purchases are happening in the form of jewellery but customers are also buying gold coins as a token of luck and prosperity. This year there are a lot of summer weddings happening which is also a factor that is contributing to the designer jewellery sale. Seeing the positive customer sentiments we are expecting 10-15% more sales compared to the last year.’’

Saurabh Gadgil, chairman and managing director of P N Gadgil said, “Gold jewellery sales have seen a 20% rise.”

Aditya Pethe, Director, WHP Jewellers added, “On a day like Akshaya Tritiya people are driven by sentimental values and not just market scenarios. This year we started seeing footfall from the moment we opened the stores. People are buying gold jewellery and coins and are coming with a pre decided requirement. We have seen a 20% growth in sales compared to last year. The sentiment of the consumer is very positive.”

Gold ‘Rush’ in the South despite social media Advice

According to reports, despite the several messages on social media advising people not to buy gold on Akshaya Tritiya as the festival symbolised compassion and not material wealth, women thronged the jewellery stores. At A.Shankara Chetty and Sons, one of the oldest jewellers in the Mysuru established in 1925, the footfall eclipsed all previous records and the crowd was 8 to 10 times the normal on Tuesday.

T S Kalyanaraman, chairman and managing director of Kalyan Jewellers said, “The southern markets have performed extremely well with Kerala and Karnataka taking the lead. Outside south, Delhi, Punjab, Rajasthan and MP also have responded well.”  Joy Alukkas, Chairman and MD of Joyalukkas Group, experienced nearly 10% growth in sales nationwide and up to 4-5% increase in Kerala.

Trends

In tune to the election sentiment, many jewellers had symbols of various political parties on gold coins and jewellery. Ornaments and coins weighing less than 10 grams, with sketches of popular national leaders, were also in high demand this Akshaya Tritiya.

Gadgil added, “People preferred lightweight wearable jewellery and diamonds.” Vaibhav Saraf, Director, Aisshpra Gems & Jewels witnessed that people mostly shopped for bridal jewellery and antique gold has been the flavour of the season. MP Ahammed, Chairman of Malabar Group found demand to be higher for diamond and studded jewellery. “Sales were up by about 25% compared to the previous year,” he added.

Increase in Ticket sizes & Double-Digit Growth

Large chains have witnessed a double-digit growth and a 15% increase in ticket sizes. The organized jewellers were better positioned to grab Akshaya Tritiya sales as the market has been shifting in their favour since demonetisation and GST. Sandeep Kulhalli, Senior Vice President-Retail, and Marketing of Tanishq found a healthy double-digit growth compared to last year.

Ishu Datwani, Founder, ANMOL explained that the sales graph is on uptrend and the consumer buying sentiment has been good ever since Gudi Padwa. “The footfalls have been good & there has been a good demand for small & big-ticket items especially in diamond jewellery & even wedding jewellery,” said Datwani.

The average ticket size was Rs 30,000-50,000 with people preferring light jewellery over heavy ones. Gold coins saw some traction this Akshaya Tritiya as investors felt that the yellow metal may gain safe haven status following growing China-US trade tensions.

Digital Gold

Digital gold, which entails purchasing gold from smart phones and other online platforms, has also seen a rise. Even though it is at a very nascent stage, but it has still seen a jump. Augmont, a precious metal management company, saw a 5x rise compared to the regular buying pattern.

Commenting on gold demand, Somasundaram PR, Managing Director, India, World Gold Council said, “Gold purchases are an inseparable part of Akshaya Tritiya celebrations for millions of Indians as a sign of prosperity, and it is also a window to the start of seasonal buying. The festive sentiment amongst both trade and consumers appears to be stronger this year.”

(With additional inputs from Business Standard, ET Retail, Asian Age, Hindu, and Times of India)