‘Akshaya Tritiya Jewellery sales remain sluggish, consumers prefer lightweight items’

Mumbai: Sales of jewellery and gold items remained sluggish on the auspicious Akshaya Tritiya day on Saturday despite heavy footfalls at stores as high prices of the precious metal dampened the festive demand, according to jewellers.

Jewellers are expecting a nearly 10 per cent decline in sales volume on Akshaya Tritiya this year compared to last year as gold prices have zoomed around 20 per cent since last year and customers are either making token purchases or going for lightweight jewellery. Akshaya Tritiya day is considered auspicious for buying gold, jewellery and valuables.

However, as the auspicious occasion is spread over two days this year, jewellers are hopeful that sales will revive on Sunday.

There have been steady footfalls since morning in jewellery retail stores, however, consumers are mainly going in for lightweight jewellery or 1-2 grams of gold coins as a token purchase to celebrate the festive occasion, jewellers said.

“We have been getting positive responses on consumer footfalls this year. In fact, reports from the southern region have been encouraging and people are mostly going in for light-weight jewellery items ranging from 2-8 grams. Hallmarking has also been a positive boost to sales,” All India Gem and Jewellery Domestic Council (GJC) chairman Sayam Mehra said.

However, due to the high gold prices, there is likely to be a decline in sales of about 5-7 per cent in terms of volume from last year, he added.

Gold prices (24K) on Saturday were ruling 60,800 per 10 grams or Rs 61,500 per 10 grams including GST, compared to Rs 50,800 per 10 grams last year.

World Gold Council Managing Director, India, Somasundaram PR said footfalls have been very good and token purchases happened true to the spirit of the festivity though high prices continue to act as a dampener for volumes.

“Footfalls are very good and token purchases happen true to the spirit of the festivity though high prices continue to act as a dampener for volumes. There are pockets which are reporting a surge in sales as the wedding season looms. Some jewellers feel consumers are slowly awakening to the potential for further price rise,” he noted.

Kolkata-based Senco Gold and Diamonds MD and CEO Suvankar Sen said this year Akshaya Tritiya is spread over two days starting Saturday and the upcoming summer wedding season is the reason behind being hopeful for good sales during this period for jewellers.

“While high gold prices and recent heat waves in a few states have impacted the customers’ footfalls during the day time, we are witnessing an increase in footfalls in the evening. Also for a change this year we have witnessed good traffic at our e-commerce and digital gold platform,” he said. High gold prices have customers going for affordable ‘wedding jewellery’ and lightweight everyday wear jewellery, he said.

“Reviewing the sales since morning and the projection for two days, we are expecting 7-10 per cent growth in value terms compared to last year and a 10 per cent decline in terms of volume. As tomorrow is the second day of Akshaya Tritiya which is Sunday, we are hopeful for more footfalls at our 137 nationwide showrooms and better sales growth,” Sen added.