As the wedding season approaches, jewellery stores across India are witnessing a significant surge in gold purchases. This buying frenzy has been fuelled by a recent reduction in customs duty on gold imports, prompting consumers to rush to stores to take advantage of lower prices before they potentially rise again.
Key Takeaways
- Customs duty on gold imports reduced from 15% to 6%.
- Demand for heavy jewellery has surged by up to 20%.
- Jewellers are cancelling artisans’ leaves to meet increased demand.
- Anticipation of strong sales during upcoming festivals and weddings.
Surge in Demand Following Duty Cut
The Indian government’s decision to cut the customs duty on gold imports has sparked a gold rush at jewellery stores. The duty reduction has made gold prices more appealing, leading to a notable increase in consumer purchases. Since the announcement, gold prices have dropped from ₹72,609 per 10 grams to ₹69,194, encouraging buyers to stock up ahead of the busy wedding season.
Jewellers have reported a surge in demand, with some experiencing increases of up to 20% in sales. Many are now working overtime, cancelling leaves for their artisans to keep up with the influx of orders. This trend is expected to continue as the festive season approaches, with major purchases anticipated for Raksha Bandhan, Dhanteras, and Diwali.
Heavy Jewellery Orders on the Rise
The demand for heavy jewellery has particularly surged, as consumers look to make significant purchases for upcoming weddings. Jewellers are reporting that customers are eager to place orders for elaborate pieces that had previously been out of reach due to high prices.
- Heavy Jewellery Orders: Many customers are placing orders for heavy gold items, anticipating weddings in November and December.
- Advance Booking Schemes: Jewellers are introducing advance booking options to accommodate the increased demand, especially for the festive season.
Regional Variations in Demand
While the overall demand for gold is rising, regional variations are also evident. In South India, which accounts for 40% of the country’s gold consumption, jewellers are reporting a similar uptick in customer footfalls. Retailers are optimistic about the upcoming quarter, expecting a 15-20% increase in demand across various segments of jewellery.
The Impact of Consumer Sentiment
The reduction in gold prices has revitalised consumer sentiment, which had been dampened by previous price hikes. Many consumers had postponed their purchases due to high prices, but the recent duty cut has encouraged them to return to the market. This shift in sentiment is crucial, as it not only boosts sales for jewellers but also supports the broader economy during the festive season.
Conclusion
As the wedding season and festive celebrations approach, the jewellery market in India is poised for a robust performance. The recent customs duty cut has not only made gold more accessible but has also reignited consumer interest in purchasing jewellery. With jewellers preparing for a busy season ahead, the gold rush is expected to continue, making this an exciting time for both consumers and retailers alike.
Sources
- Gold rush at jewellery stores as customs duty cut spurs buying frenzy ahead of wedding season – The Economic Times, The Economic Times.
- Mumbai: Jewellers look forward to Dhanteras as buyers return in strength | Mumbai News – Times of India, Times of India.
- Jewellery Retail: India’s gold duty cut likely to spark buying spree during festivals, ET Retail, ET Retail.
