Advance orders for delivery add sparkle to jewellery sales this Dhanteras

While jewellers claim to have clocked a 15-20 per cent surge in sales on Dhanteras today, a significant part of their volumes have come from orders made in advance for delivery on the festival day.
“After many years, consumers have been seen purchasing gold and diamond ornaments. This means they have been placing orders in advance in order to take delivery on auspicipus days like dhanteras. Jewellers also need to have some time to make customised ornaments as per order. While fresh orders are good for diamond and lightweight jewellery bought mainly for gifting, advance bookings for delivery on Dhanteras day are adding to gold sale volumes this year,” said Rajiv Popley, Director, Popley & Sons.

Jewellery retailers have witnessed a sharp turnaround in consumer behaviour the past five days. Just a few months ago, in July and August, sentiment was negative due to the sharp increase in gold prices. Consumers had postponed their orders the past several months due to increase in gold import duty from 10 per cent to 12.5 per cent, prohibitive prices, economic slowdown, rural farm distress and stressed trade relations with some countries resulting into overall uncertainty.
Despite the correction that followed after the metal hit a lifetime high of Rs 40,000 per 10 grams, standard gold has offered 21 per cent returns the past one year, and was trading at Rs 38,570 in the physical market today. At Rs 46,775 a kg, silver also brought cheer to buyers, delivering a 20 per cent return in one year.
“The sharp rise in the price of gold and the deep discount in the bullion market impacted trade and consumer outlook in the third quarter. However, Dhanteras seems to have changed all this, as had been expected. A good monsoon and softening of prices, coupled with attractive offers by retailers in an effort to down stock, have boosted overall buying sentiment. Footfalls are reported to be better compared with the start of the season,” said Somasundaram P R, Managing Director, India, World Gold Council.
Most jewellers, meanwhile, have seen a sharp increase in lightweight gold jewellery for gifting and diamond ornaments for wedding and self-consumption. Consumers have turned out in large number to make the most of the massive discounts and freebies in gold and diamond jewellery.
What's more, the phenomenal growth in the physical gold and jewellery sales has percolated to digital market as well.
“Our digital gold sales this Dhanteras are twice the volumes we achieved on the same day last year. We expect sales to increase even faster," said Sachin Kothari, Director, Augmont, an early-stage digital and physical gold company.
MMTC-PAMPS, which supplies gold to three or four platforms selling digital gold, said its sales are expected to be 6-7 times higher today than normal day sales, and about five times last year's Dhanteras.
Said Aditya Pethe, Director, WHP Jewellers: “Festivals are important occasions to increase sales even if pre-festive build-up isn’t that noticeable. We also have to see online sales which have been good this time."

Dhanteras, Diwali shopping provide some relief to traders and retailers

Despite fears of massive losses during this festive season, Dhanteras and Diwali shopping provided some relief to traders and retailers.
In fact, many shops in different parts of the country even witnessed robust sales.

Some of the major metros such as New Delhi, Bengaluru, Mumbai, Chennai, and other big cities like Ahmedabad, Surat, Kanpur and Lucknow saw a healthy rise in sales.
“Starting from Dhanteras, consumers in large numbers came out from their homes and started visiting markets, giving hope for a good business to traders in Delhi and across the country. If this trend continues, we expect good sales during Diwali this year,” said Praveen Khandelwal, secretary general, Confederation of All India Traders (CAIT).
However, CAIT said that online ecommerce badly impacted offline trade. “In various retail segments, ecommerce has very adversely impacted us and sectors, including consumer durables, FMCG, electronics, mobiles and electrical goods, have seen a decline in business by as much as 40 per cent,” added Khandelwal.
Traders in Kanpur claimed that many people landed in the city for Chhath Puja and the increase in influx has helped boost sales. “Many are coming back home for Diwali and Chhath. This has helped sales. If this momentum continues, we would not only be able to reach our targets but also make sizeable profits,” said Anmol Sharma, a home linen trader in the city.
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Earlier, traders claimed that spending capacity of customers had gone down drastically. “The traders are hoping that from the day of Dhanteras, shopping will accelerate and in other days of the festival, consumers will visit the markets. But compared to last year, there is a 40 per cent decline in business,” said Khandelwal had said.
Cities such as Surat also saw an increase in sales of jewellery on Dhanteras. “Sales have improved quite a lot over the last 24 hours. We believe the momentum will continue at least till the weekend,” said Jayesh Kumar, owner of a gems and jewellery store in the city.
Others, however, claim that footfalls in the market this time around would not be a parameter for gauging sales. Even though people are stepping out, not many are buying.
“Sales have slightly improved but it is still less than what was expected. For many, stocks are still lying idle. No one is buying clothes, electronics, or other non-essential items that otherwise see a sales boom during Diwali,” said Ashok Randhawa, president Sarojini Nagar Mini Market Association.