Retailers optimistic about sales on Akshaya Tritiya

A week before the festive day of Akshay Tritiya approaches on May 6, 2011, the gem and jewellery industry is holding onto its optimism of good sales, even in the wake of rising gold, silver and diamond prices. “Consumers are more open to buying this year than three years ago. Infact last year, we clocked sales over 10 times than on a normal non-seasonal day. This year too we are confident of recording great growth”, states Mr. Bhuwan Gaurav, Marketing Head, Tanishq. Besides jewellery brands, the retailer segment too is evoking this optimism. “Sales are definitely going to increase. The volume is going to be much better than last year. Yes these high prices are here to stay and the consumer is aware of this. We are planning a discount scheme so that the customer does not feel the pinch.”, says Mr. Sanjay Salla - Owner of V N Jewellers.

While consumers are opening their spending capacity, retailers have customized their Akshay Tritiya promotions to meet the consumer’s buying preferences in a ‘price conscious manner’. "pre booking' offers that allow consumers to book their orders of gold jewellery in advance and receive delivery on the day of Akshay Tritiya, to protect against rising gold prices, and discounts are expected to lure purchases.

Traditionally gold in the form of jewellery and coins has been the sales driver, and majority believe it will be so this year too. Mr. Notandass, owner of Mahesh Notandass, expects an overall jump in sales by over 20 percent this year on Akshay Tritiya, and believes sales of gold coins will be strong, though the grammage would be dependent on consumer budgets. Recently gold prices have been rising by around 30 percent (y-o-y). “We are confident that on Akshay Trithiya consumers will make significant gold purchases as Gold is an irreplaceable part of Indian culture and a unique monitory asset” adds Mr. Notandass. He further added that “In spite of increase in prices, the mantra behind our good sales is our innovative designs and customer oriented after-sales service”.

That consumers are willing to spend a little more if designs are appealing is also what Mr. Bhuwan believes - “Designs will play a key role. There are times when they love the jewelery piece or its design a lot and don’t mind upgrading their budget”. He further added, “Jewellery definitely will take the larger share of the sales pie as compared to coins, for Tanishq. Consumers are drawn by the choices in jewellery, be it for a wedding trousseau, for an occasion or just for daily wear, while still buying an auspicious symbol”.

Not discounting the dominance of gold jewllery, diamond jewellery has been catching up with consumer preferences. Mr. Bhuwan adds, “Although gold occupies a large share of purchase owing to its traditional symbolic significance, the share of diamond jewellery is on the rise.” Tanishq is offering a 15 percent discount on diamond jewellery for the Akshay Tritiya festival. “Most of the consumers are willing to buy diamonds shedding away their traditional buying pattern”, adds Mr. Salla of VN Jewellers.

Akshay Tritiya which has been the festival traditionally of the South, is today a revenue churner across the country. “Tanishq has been able to maintain Akshay Trithiya as a festival across the country. Our sales on this day have churned good results across all regions, North, West, South and East Markets”, says Mr. Bhuwan.