Unusual to the common practices, jewellers are offering massive discounts on making charges on precious ornaments this festive season to attract customers and increase sales to cover up the loss they had incurred over the last one year due to government’s stringent measures on curbing black money.
While organised players like Tribhovandas Bhimji Zaveri (TBZ) is offering upto 50% discount on making charges on gold and diamond ornaments, industry leader Tanishq, the famous jewellery brand from the house of Tata’s, is offering upto 10% discount on diamond studded gold jewellery.
Interestingly, such an offer was never heard during wedding and festival season as consumers are considered to buy jewellery under compulsion either to gift to their relatives on the occasion of wedding or any other such needs. Discounts are offered normally during the lean season to lure customers to purchase jewellery to boost sales.
“The trend of discount in jewellery during the wedding and festival seasons started in 2016 as jewellers wanted to recover a part of the business they lost during the 42-day strike in protest of excise levy. Earlier, such a discount was never offered during the festival and wedding season. Jewellers, however, are continuing with last year’s trend with an increase in discount percentage to boost sales this wedding season,” said Vijay Jain, Managing Director, Orra, a popular brand in gold and diamond jewellery.
Orra is charging “nil” making charges on gold coins this Akshaya Tritiya week ending April 29. Similarly, TBZ is offering 35% discount on making charges on diamond and 25% on gold jewellery. Almost all small and medium size jewellers are also offering huge discount to match with organized sector players in customer footfalls.
“Consumers are expecting gold price to rise further in near future due to escalating geo-political tensions between the United States and North Korea where Russia and China have also taken part. Gold which is considered as safe haven buying at the time of inflationary pressure and geo-political uncertainty, has given good returns to buyers in times of global political uncertainty and therefore, it should be a part of everyone’s portfolio. Considering that, gold sales are looking good this festive season which coincided with wedding season also,” said Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions, a leading bullion dealer in Zaveri Bazaar.
Apart from making PAN mandatory after cash purchases of Rs 2 lakh, the government earlier this year restricted cash purchases beyond this level across all asset classes including jewellery.
“Almost entire year since February 2016 was lost. Excise duty levy resulted in 42-day strike last year and jewellery sales were badly hit further because of demonetisation in November 2016. Sales are looking good this Akshaya Tritiya season, which is expected to set the trend for the rest of season this year,” said Kumar Jain, Director, Umedmal Tilokichand Zaveri, a bullion dealer and jewellery retailer in Zaveri Bazaar.