Diwali is a magnet for gold customers and investors, thanks to the auspiciousness of the occasion. The festival often attracts consumers with varied sensibilities. Moneycontrol caught up with MP Ahammed, chairman of Malabar Gold & Diamonds, one of the largest jewellery chains in India to understand the prevailing trends, demand and what customers should know in the festive season.
Why must one invest in gold this Diwali and what kind of jewellery is an ideal choice (for example solid gold without stones)?
People must invest in gold because it's a liquid asset and inflation hedge. It also offers a higher return. Consumers can buy plain gold jewellery, as it comes with higher investment value.
What should consumers take note of before buying gold for this Diwali?
These are some of the things consumers should bear in mind.
1. Don’t get lured by offers; read the fine print:
Customers should gather all the relevant and necessary information on a particular offer to make an informed purchase decision. During Diwali, the biggest gold buying season, markets are usually flooded with alluring offers on gold jewellery. So, the customers should tread carefully.
2. Consider hidden costs:
Go for transparent and detailed invoice and price tag with accurate and detailed price breakup including gold weight, stone weight, net weight, stone charge and making charge. That's the way customers can identify hidden costs.
3. Get clarity on the buyback terms:
Customers must get clarity on how the value of the gold will be calculated during buyback to avoid any confusion.
4. Pay attention to BIS hallmarking components:
Selling hallmarked jewellery is mandatory. Customers should check the hallmarking symbols embossed on gold before buying.
Can you talk about the marketing strategies for this Diwali?
We have an 8% share in TV advertising and 11% share in Print advertising and 24% share in digital media.
Given the situation of the pandemic, are you taking the digital/physical route? What are the strategies followed on digital/offline platforms by the brand?
Yes, the Fair Price promise and One India One Gold initiative is our key strategy. The ‘One India One Gold Rate’ initiative offers customers across the country an opportunity to buy 100% BIS hallmarked and responsibly sourced gold at a fair price. It aims to develop a transparent and level playing field in the trade, putting the consumers’ interest above everything else.
Our Fair Price promise initiative, which means reasonable making charges for all jewellery, assures the best value for purchase.
Gold jewellery across the states is sold at different gold rates even though gold is mainly purchased by the jewellers from the designated banks at a transparent and uniform rate. The price difference doesn’t benefit the end-consumers.
Will the Diwali sales rough pre-covid levels or do better?
As there is pent-up demand, we expect healthy consumer demand for gold jewellery during Diwali this year. As the economic recovery is gaining pace, we expect a positive consumer sentiment with a 30%-40% increase in sales compared to that of last year during Diwali.
What kind of designs are trending in gold jewellery for women this Diwali?
Being an auspicious and popular gold buying occasion, Diwali attracts consumers with varied sensibilities. Among the prevailing trends, traditional and contemporary designs in the lightweight category are the most prominent ones.
What are the must-buy gold jewellery for men this Diwali (it can include jewellery watches, bracelets, rings, kadas etc. apart from other jewellery)? More and more men are reinventing their style statement by flaunting exquisitely designed gold jewellery. Among the fast-moving ones, rings and bracelets are the most popular jewellery among men.