US jewellery sales lose glitter before Christmas

SURAT: For the first time in many years, pre-Christmas sales at speciality jewellery stores in the United States slipped 5% year on year in the first half. Diamantaires thus feel that Santa Claus may not bring any goodies for them this Christmas.

According to data from the US’ Census Bureau, consumer sentiment to purchasing fell to 121.5 index in June, which was lowest level since September 2017. Monthly figures for January to June all dropped compared to same time the year before, with June showing the largest dip, sliding 10% to $2.31 billion.

With more than 50% of jewellery sales in the world, the US is the largest market for gems and jewellery. India’s annual exports of gems and jewellery, including polished diamonds are pegged at over $17 billion- diamond exports to the US accounts for $10 billion per annum.

Hitesh Patel, managing director of Dharmanandan Diamonds, said, “Despite dip in jewellery sales till June, we are hopeful that they will rise in the US before Christmas. The US-China trade war has a huge impact on consumer sale there. But we do have an opportunity to tap the Chinese market.”

Recently, more than 32 topmost jewellery buyers from the US participated in the buyers-sellers’ meet organized in Mumbai for direct business with diamantaires and jewellery manufacturers from Surat, Mumbai and other parts of the country.

A De Beer sightholder company chairman said, “Business sentiments are quite low ahead of Christmas season. Buyers are demanding diamonds at discounted rates when prices have already gone down by almost 20% in the last one year. We are hopeful that the orders from China will be diverted to India due to the US-China trade war.”

Kirti Shah, diamond exporter, said “The market is literally bleeding. There is a big issue of liquidity and that the diamantaires are unable to fulfill the orders from international buyers due to price issues. As consumer sentiments are weak in the US, the Christmas season looks dull this year.”

Courtesy: TOI