Gold and diamond sales set to rise as festive season beckons

Many retailers are running special gift offers to attract the jewellery shopper. Pre-bookings are encouraged to meet the demand, in anticipation of the festival rush. The surge in purchases, often off-the-shelf and impulsive, during this season, is expected to contribute to a significant increase in sales during the Diwali and Eid week, as compared to the first week of October.

Mr. K.P Baiju, General Manager, Dubai Gold and Jewellery Group said:

'It will be a celebration of festivals in the coming 10 days. Phenomenal sales are expected for Dhanteras, which falls just before Diwali. Dhanteras, a traditional celebration, is considered an auspicious occasion for buying gold. Also, Eid-Al-Fitr also represents a major period of jewellery gifting. Moreover, special occasions such as the Piravi Day, a Southern Indian celebration will also lead to incremental sales.'

'We experience a seasonal rush every year during this period. This year, we also anticipate that the Eid-Al-Fitr holidays will contribute to sales. Our sales staff and our back-end manufacturing team has already geared up to meet the festive rush,' says Tawhid Abdullah, Managing Director, Damas.

Speaking about the ensuing Diwali sales, Mr. Manoj Menon, Marketing Manager at Alukkas, one of the leading gold retailers in the region, said: 'We are anticipating that Diwali's contribution to our bottomline will be substantial this year, as compared to the last. This year, we notice a newfound consumer preference for diamond studded jewellery.'

Consumers also prefer to purchase specially minted gold coins, bought as gifts for business associates, relatives and friends.

In his comments on the sales trend, Mr. Sijoy Varghese, GM-Marketing at Sky Jewellers, said: 'Diwali means big business for us and the coming week will definitely see a spurt in our volumes at all outlets.'

Convenient pre-bookings and an assured gift with purchase make for the value-added offer at many of Dubai's large jewellery chains.

Chandu Siroya, Managing Director, Siroya Jewellers said, 'The South Asian consumer has a preference for our unique Rajasthani designs. This fortnight traditionally offers us the highest peak in our sales chart.'

Importantly, retail demand is not impacted despite the high prices of gold.

This year, the industry has also underlined and highlighted the increase in demand for diamond studded jewellery. This increase is being attributed to the youth, which has been looking for alternatives to traditional gold jewellery. Not to be outdone, jewellers have also got into the act, with special collections and designs at every price point.