With domestic consumers continuing to purchase gold, jewellery retailers are expected to witness steady sales throughout the year  Despite hike in gold prices, the commodity continues to be popular among Indian consumers. According to the World Gold Council (WGC), the country continues to remain the largest consumer of the yellow metal in the world.“Gold jewellery is considered as a necessity for every auspicious occasion in India, be it wedding or festivals. Gold is purchased not only due to tradition but it also enhances Indian beauty. As a result, domestic consumers would continue to purchase the yellow metal, thereby improving sales of jewellery retailers,” says Chandrika Mistry, administrative official of Bello Jewels Pvt Ltd, a mid-sized jewellery exporter and supplier in Gurgaon, Haryana.
Besides being the largest consumer of gold, India is also regarded as the largest gold importer in the global market. It has been noted that gold imports in January 2010 witnessed a 3-month high standing at 37 tonnes, whereas in November and December 2009, gold imports stood at 30 and 27 tonnes, respectively.
Strategies to improve gold sales
Although the demand for gold continues, retailers are continuously striving to implement various strategies to maintain steady sales throughout the year. In a bid to draw consumer attention towards the yellow metal, retailers are providing discounts and such other lucrative offers. Jewellery retailers are also creating gold jewellery in modern designs to target the youth.
“Apart from consumers from foreign countries who generally prefer stone studded gold jewellery, domestic consumers are also showing inclination towards the same. As a result, jewellery manufacturers are introducing a wide range of gold jewellery studded with different coloured stones to meet consumer demand,” says Harsh Garg, CEO of Derewala Jewels Inc, a large-sized jewellery supplier and exporter in Jaipur.
Therefore, by implementing such strategies gold retailers will be able to earn high revenues from the domestic market as well as maintain their position in the global market.
Sabrina Mitchell |
