Akshaya Tritiya churns buyers despite high gold prices

India celebrated its Akshaya Tritiya festival this year on May 16, 2010.The traditional festival is believed to be an occasion to welcome prosperity. Buying gold is a popular activity on Akshaya Tritiya, as gold is the ultimate symbolism of wealth and prosperity. While the week leading into the festival saw gold prices sky rocketing, the prices eased on May 16 to Rs 18,397 per 10 grams from a record high Rs. 18,508 per 10 grams two days earlier. According to industry experts, while the overall Indian jewellery market saw an estimated growth by 10-12 per cent, the southern region, growth was pegged to up by 25-30 percent. In addition, gold exchange traded funds (Gold ETFs) witnessed impressive volumes in special trading on May 16, on the country's premier stock exchanges.

C. Vinod Hayagriv, Chairman, Gems and Jewellery Trade Federation, said “The Bangalore market witnessed growth across categories namely gold, silver and diamonds.This year Akshaya Tritiya saw much larger business interest in making lighter jewellery thereby making Rs. 1800 pg feel like Rs. 1500 pg.” The driving forces this season, despite a recovering economy was new collections, discount schemes, promotional offers to attract buyers.

Akshaya Tritya 2010 trends

South India sees phenomenal response, despite high gold prices.

Large jewellery stores/retail chains fared exceedingly well, some of them recording plus 35 to 40% growth in volume especially in South & West.

New collections, discount schemes, promotional offers attract buyers.

Maximum brought products include daily wear jewellery like earrings and pendants.

Gold coins sales see a very good response. Banks across the country have registered robust coin sales growth over last year.

Sweet spot for price range: Rs. 8000 to Rs.20,000

Advance-planning and advance booking by consumers to avoid last minute rush.

Many outlets, especially in South opened from early morning to midnight for this day.

Media campaigns and individual ad campaigns spread awareness.

Jewellery buying seen across all age group consumers.

Diamonds set in gold see increasing takers, preference for light-weight jewellery.