Jewellery sales sluggish on Akshaya Tritiya as gold price rise dampens festive demand

This year's Akshaya Tritiya was marked by sluggish sales of jewellery and gold items despite heavy footfalls.

This year's Akshaya Tritiya was marked by sluggish sales of jewellery and gold items despite heavy footfalls as high prices of the yellow metal dampened demand, jewellers told PTI. The festival is spread across two days this year, April 22 and April 23.

Jewellers expected a nearly 10 per cent decline in sales volume on Akshaya Tritiya on a year on year basis due to the 20 percent rise in the price of gold since last year. Customers either made token purchases or went for lightweight jewellery on the auspicious occasion on April 22.

Steady footfalls were seen since morning on April 22 in jewellery retail stores, however, consumers opted mostly 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 told news agency PTI.

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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, Mehra said.

Gold prices (24K) on April 23 were ruling Rs 62,090 per 10 grams in Delhi, compared to Rs 50,800 per 10 grams last year.

Kolkata-based Senco Gold and Diamonds MD and CEO Suvankar Sen appeared bullish regarding sales and said 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.

"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 April 23 is the second day of Akshaya Tritiya which is a Sunday, we are hopeful for more footfalls at our 137 nationwide showrooms and better sales growth," Sen added.

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De Beers Forevermark Vice President Amit Pratihari talked about witnessing a strong momentum with South Indian states driving the demand on the auspicious occassion.

"On the auspicious occasion of Akshaya Tritiya, we have been witnessing strong footfalls. All our partner retailers have received a good response and we have witnessed a strong momentum across the country, particularly in South India, where it's a major festival," Pratihari said.

Pratihari spoke about people taking interest in diamond jewellery and a sustenance of demand throughout the year.

"People are taking more interest in diamond jewellery, we have noticed around 25-30 per cent growth this Akshaya Tritiya and are upbeat that the strong demand for this festivity will be retained for the rest of the year," Pratihari said.

Jewellers are expecting the demand to pick up on April 23, the second day on which the festival is being celebrated.

(With inputs from PTI)