Akshaya Tritiya 2019 to Increase Jewellery Sale by 15-20%

Talk about festivals and India goes bullish on expenditures. Akshay Tritiya is one such festival, which has been historically synced with the consumer’s psyche of good luck and prosperity with jewellery. Compared to 2018, this year looks more hopeful.

Ishu Datwani, founder, ANMOL, feels the sales graph has been on an uptrend since Gudi Padwa, with good demand for small and big-ticket items in diamond jewellery. “We would be concluding our 33rd Anniversary sale on Akshaya Tritiya with great deals on diamond and gold jewellery, which will give an additional boost to Akshaya Tritiya sales. We are expecting a 25-30% increase in sales this year on Akshaya Tritiya, as compared to last year,” says Datwani. Striking a similar chord on Akshaya Tritiya promotions, Rajesh Kalyanaraman of Kalyan Jewellers says the brand’s promotion of latest designs for the occasion will give a fillip to sales. “Besides, elections are over in many states and the gold rate has stabilized. There are good designs doing rounds in the market which will boost diamond sales for wedding jewellery segment and gold sales for Akshay Tritiya this year,” says Kalyanaraman.

The upward graph of the gold price is the most prominent encouragement for consumers and retailers alike. Vaishali Shah, Director, Rivana Gold and Diamonds, thinks gold prices should hover around Rs 32,400 for a steady demand. “Sales are expected to be as good as last year or maybe better by 5-10%,” said Shah. “The Gold prices are hovering around the same level as prevailing during last Akshaya Tritiya The present rate of gold is Rs32,500, increasing from Rs32,000 in 2018 which is a healthy sign. People expect it to rise at any time,” says Vidit Garg, director of KUNDAN Gold Refinery (KUNDAN Group), a reputed private gold refinery which has recently been honoured with the Best Bullion Dear Gold award by IBJA.

Gold jewellery inarguably has most of its sale in rural areas and suburbs. This is because the sense of investment still rules supreme in the mind of consumers therein. With diamond and platinum being new entrants in this category, gold has been an omnipresent metal symbolizing luxury for the rural elites, most of whom deal with agriculture. The increase in farmer’s income, says Garg, has been due to additional funds disbursed by the government under the Kisan Samman Scheme. Tanya Rastogi, Director, Lala Jugal Kishore Jewellers, agrees with Garg, saying the rural sector will contribute a sizable percentage of sales because of the welfare schemes targeted for the farmers ahead of elections. “This boosts the rural income which they tend to convert to gold. We also have a good wedding season this summer, so we are expecting a strong Akshaya Tritiya,” said Rastogi. Agreeing with Rastogi, Shreyansh Kapoor, Vice President, Kashi Jewellers says this summer wedding season will give ample scope for jewellers to trade.

Gold prices have steadied near four-month low, post the comments from US Federal Reserve. Global gold reserves rose 145.5 tons in the first quarter. The gold demand is expected to be robust in India considering the upcoming traditional gold and gold jewellery buying occasion Akshaya Trithiya, feels GJC chairman N Ananthapadmanaban. “We have observed that the demand from retail buyers has increased due to the falling gold price. This will remain on the positive side not just due to Akshaya Trithiya but also due to the long wedding season. In comparison to the jewellery sales last year on Akshaya Trithiya, we anticipate double-digit growth in sales this year,” he says.

It’s an auspicious occasion and people look set for buying jewellery. “Since it’s considered a holy time for investment, North Indians buy gold and every jeweller prepares for offers accordingly,” says Garima Gaur, Pandit Jewellers, Bulandshahr. For Anuj Jain of SS Jewellers, Gurgaon, his market is graduating to diamonds now. “The rural part of Gurgaon has started responding to small diamond jewellery. This Akshay Tritiya, we are launching Divine Solitaires diamonds and hope to boost diamond sales,” says Jain. Similarly, Nilay Bhimani of ZBZ Jewellers, Mumbai, expects positive purchase behaviour. “In terms of sales growth, we expect stronger demand and sales in this season,” says Bhimani. It is expected that the stores will have 30-35% increased footfall for mahurat shopping. “We are hoping to receive more number of pre-orders from last year due to a drop in gold rates which will also have an impact on sales on that day. Since its Mahurat shopping, generally demand for gold in bullion category will be more. We’re looking forward to achieving a rise of 10-15% in comparison to last year,” said Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers. Another factor boosting sales is the occasion of Mothers’ Day, which is in the same week as that of Akshay Tritiya.

However, Joyalukkas thinks this year the sales would be as lukewarm as 2018. “Bookings have started and from the look of it, I can tell that sales would go usual this year. Even 75% of elections would be over by 7 May, so money circulation won’t be a problem by then,” said Joy Alukkas, owner, Joyalukkas. For East India, the cyclonic disturbance and related inclement weather conditions may foul the buying mood, feels Suvankar Sen, executive director, SENCO Gold & Diamonds. “Otherwise, the gold rates are attractive for consumer and the trend for small ticket sizes is more,” says Sen.

The budgetary sops to middle-class income group have been a heavy stress-reliever. With annual income below Rs 5 lakh becoming tax-free, the sudden rise in disposable income is being replicated in investment.  “There is no better alternative avenue than jewellery, as some of the mutual funds have given lesser returns and there are adverse reports of prospects of mutual funds. This year, being an election year, we witness heightened money circulation. People spending on gold is one such development,” Garg says.

With rupee appreciation and stability in the global gold price, this Akshaya Tritiya must be cashed in by end consumers. KUNDAN Group expects at least fourfold increase in the gold sale on the occasion, with major purchases of gold coins and plain jewellery.

However, scheduling of election after Akshaya Tritiya restricts cash flow and this might tighten sale of high-ticket jewellery. “In North India, elections were scheduled for 29th April. So, unfortunately, not many people were walking in to make the purchases due to the political environment,” says Shreyansh Kapoor. Raman Jethi, owner, Krishna Krishna Jewellers, says election in Panipat is on 12 May, while Akshay Tritiya is on 7 May. “I believe the buying will be a bit lean this time because of this election date. However, we have launched lightweight jewellery lines for this occasion and expect to have a 20% hike in sales than last year, solely in this segment, on 7 May,” said Jethi.