Retailers gear up for a profitable Akshay Tritiya, expect an average 15% growth in volume

Even though the most auspicious day of shopping in India holds promise for a bountiful weekend, competitive markets and sky-high prices will only allow volume growth for those who come prepared with disruptive strategies to excite consumers

Akshay Tritiya is the single biggest and most auspicious day for shopping of precious metals in India. This year, it falls on a Saturday and customers buying gold jewellery have an added advantage of the festival taking place over a weekend. However, the rise in the gold price has resulted in wary customers. Earlier, retailers would report many pre-bookings for Akshay Tritiya – this year, as per retailers surveyed, the pre-bookings are relatively lower.

The unprecedented rise in gold prices is making customers who wait for this festival to make their yearly purchase postpone their gold bookings, hoping for a price correction before April 22. However, the overall mood is buoyant as the increase in price has built greater confidence in the metal.

Keeping these factors in mind, retailers are raring to go big with offers and in-store events; the mood is optimistic. “We are bullish about this year’s Akshay Tritiya. Gold prices are expected to stabilize and stay within the ₹60,000 mark, which will help boost sales in gold and silver. As uncertainty deepens all over the world, there is an increasing confidence in gold as a safe option, and hence, a greater demand,” says Dr Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers. 

He is expecting customers to buy bullion as well as jewellery, especially occasion wear. “We expect a huge spike in millennials and Gen Z shopping for Akshay Tritiya as more and more first-time buyers have entered the market. This year, we expect a 10 percent hike in business in quantity terms vis-à-vis last year, while in value terms we expect a 35-40 percent rise. Pan-India consumption ranges around 30 tonnes, out of which nearly 8 tonnes are consumed in Maharashtra alone. This year, we will see an uptake of 10 percent on these quantities. If Maharashtra consumes 12-14 tonnes this year, 50 percent of it is expected to be from Mumbai and Pune,” says Gadgil.

Eshwar Surana, Managing Director, Raj Diamonds, is estimating that there will be a 20-25 percent growth in value terms over last year. “We are witnessing a paradigm shift in buying behaviour among consumers and the demand for quality diamonds has already been very strong in the run-up to Akshay Tritiya. We are expecting good traction in high value diamond studded and wedding jewellery as there are a lot of weddings planned this summer. We are also seeing a preference for larger diamonds with an excellent cut grade that are masterfully crafted and precisely cut to create maximum sparkle and brilliance,” he says. 

Still, some retailers are feeling cautious. “We have an offer called ‘Saj-Dhaj-ke’ running on our 22 KT Gold jewellery and Bridal jewellery collection; and we’re expecting a growth hike of 10-12 percent in volume,” says Milan Shah, Director, Kalamandir Jewellers. Some other retailers are focusing their efforts on marketing plans, just in case gold prices continue to rise. “Though the spike in prices could be a dampening factor, we have created a very unique social media campaign. We expect a 20 percent increase in business at least, in sales year-on-year for the company even though the rising prices could impact us,” says Amol Bansal, Director, BK Saraf Jewellers, Lucknow.

Despite positive market sentiments, April has seen a sombre start due to the record-high price of gold. Gadgil says, “I doubt the overall industry sales will grow. It is only those who will walk the extra mile in creating value for customers in terms of new collections, promotional offers and strategising targeted communication.”

Markets are competitive, and the sky-high rates will only allow volume growth if retailers come prepared with disruptive strategies to excite consumers. Case in point: Bluestone has recently launched a limited-period offer for Akshay Tritiya. The brand’s disruptive campaign promises a ‘Big Gold Upgrade’ where 14 kt will be valued at 16kt, 18 Kt will be valued at 22Kt, and 22kt will be valued at 24kt, ensuring high –traffic and conversion and adding a sparkle to one of the biggest business days in jewellery retail.

RJ Exclusive