Jewelers are cautiously optimistic about this Dhanteras; Business expectations are on par with last year’s level, Retail News, ET Retail

Mumbai: With Dhanteras around the corner, jewelry The industry is cautiously upbeat on demand, mainly due to last year’s exceptionally high fundamentals, inflation concerns and rising overall costs of living. The industry is cautious though benign yellow prices, are at around Rs 47,000-49,000 / 10 grams, and consumer sentiment is generally positive.

After the first wave of the pandemic, revenge shopping coupled with postponed weddings boosted demand, leading to a particularly good Dhanteras in 2021, with sales even surpassing pre-pandemic levels. Translate.

Dhanteras, marking the first day of Diwali In India, it is considered auspicious to buy gold and silver as part of Hindu festivals.

“Demand for jewelry in Dhanteras is likely to be on par with last year as 2021 is an exceptional year for the industry as the country slowly inched towards post-pandemic normality.

“Postponed weddings and reprisal sales last year boosted demand with sales surpassing pre-pandemic levels,” Ashish Pethe, All India Gem And Jewelery Council Chairman, told. PTI.

This year, consumer sentiment has been dampened by high inflation, rising costs and unseasonal rains affecting agricultural activity, he said.

“Even jewelry pre-orders, which usually start in Dussehra, have been slow this year. However, weak gold prices are likely to benefit the sector,” he added.

Regional World Gold Council Managing Director, India, Somasundaram PR said that over the years, India has developed a strong cultural relationship between the golden festival and auspicious festivals, such as the Dhanteras festival, which is supported supported by sound economic theory.

He pointed out: “The purchase of gold as a token drives the positivity around these festivals. Moreover, with the recent correction of the domestic gold price and favorable monsoon, the festive sentiment of the country. retail consumers seem positive”.

In a conversation with ETRetail, Ahammed shared his insights on the jewelry market and the company’s plans for this festive season.

However, the impact of inflation on household finances could lead to an immediate impact on gold jewelry needs, he warned. “Unlike the Diwali season in 2021, this season may not have the advantage as pent-up demand or savings from weddings are muted, driving higher gold purchases. Having said that, this is the case. Given a busy shopping season and gold being a valuable hedge against inflation, any further decline in prices in the coming weeks could lead to an increase in demand,” he added.

Senco Gold and Diamonds CEO and CEO Suvankar Sen thinks that this year the industry is likely to see a need for standardization as things have returned to normal after the 2021 exception, where sales were mainly driven by revenge purchases after the country gradually emerged. about the disruption caused by Covid-19.

“We expect revenue growth to be either single-digit or double-digit year-over-year, but ticketing will be low, which will be offset by higher footfall,” he said.

Weak prices may not have much impact on sales as a weak rupee has limited gold prices to fall further, he said.

“This year, sales are likely to pick up as Dhanteras falls over the weekend and spans two days. After a good first quarter and a quiet second quarter, the industry is looking forward to the third and fourth quarters. positive,” he added.

Demand for precious metals in Tier II cities remained high compared to Tier I while Tier II cities saw a 44% increase. Precious metal searches in Tier I cities increased by 34%. With prices falling, gold remains the most sought-after precious metal and has seen a 34% increase in demand (year-on-year), silver down 140%, platinum up 82%, while diamond still stable on Justdial.

Commtrendz director Gnanasekar Thiagarajan said a continuation of this weak trend is likely given the ongoing rate hikes.

However, these rallies will ultimately affect the US economy and weigh on the dollar in the coming quarters, he noted.

“However, as we move towards the US midterm elections, gold could once again become a safe haven as the stalemate is expected in the elections. In the global market, we expect the price to test 1,545-1,550 USD on a decline and in the domestic market near Rs 48,000 in MCX“Thiagarajan added.

Meanwhile, Kalyan Jewelers India Managing Director Ramesh Kalyanaraman said that with the consumer sentiment shifting from the unorganized sector to the organized sector, the organized players will see gains in the period. This Dhanteras.

Last year was a special year as the country came out of the pandemic, however, with the weakness in gold price dominance and no pandemic related uncertainty, things are looking positive this year, he said.

“We have high hopes and are expecting a better and stronger Dhanteras than last year. For us, pre-bookings are strong and our e-commerce division, Candere, is up and running. We have also gained a lot of market share with the opening of more stores leading to increased customer base. We are expecting a positive year here in Dhanteras,” he added.

PNG Jewelers President and CEO Saurabh Gadgil said the year-to-date rally has been strong since the start of the festive season, mainly supported by weakness in gold prices.

“We expect this trend to continue during the Dhanteras and Diwali periods as jewelry demand remains strong. Even if the 2021 Dhanteras has been exceptional, given the current momentum, we expect sales to remain strong. this year will grow about 20% compared to last year,” he said.

He pointed out that the number of pre-orders this year is a bit low as customers mainly buy ‘off the shelf’ due to attractive prices.

Mr. Gadgil added: “We expect bullion, both gold and silver, as well as diamonds to do well on Dhanteras.

Uttar Pradesh-based Aisshpra Gems and Jewels director, Vaibhav Saraf, said consumer sentiment is positive and the industry is optimistic that it will achieve 15-16% growth in sales in this Dhanteras compared to this. with last year.

However, unseasonal rains have caused damage to crops and are likely to be a drag on demand, especially in rural areas during this Dhanteras period, he said.

Director of Waman Hari Pethe Jewelers (WHP) Aditya Pethe said that consumer sentiment was generally positive from April until Navratri.

“Sales were down in the weeks leading up to Diwali, but looking at overall positive consumer sentiment, we expect it to pick up during the festival of lights. Overall, we expect 20 percent growth. -25% compared to last year”. he say.