Embrace the Spirit of Akshaya Tritiya with Light Investments
Lightweight jewellery emerged as the preferred choice for consumers this Akshaya Tritiya, as soaring gold prices prompted shoppers to balance their budgets with their desire for the auspicious metal. Gold prices have surged nearly 57% year-on-year, climbing from approximately Rs 97,000 per 10 grams to around Rs 1,52,000. Silver has seen an even steeper increase of 163%, rising from Rs 97,000 per kilogram to Rs 2,55,000. Despite these price hikes, the demand for gold and silver remains strong, with jewellery brands adapting to consumer preferences.
Consumer Trends in Jewellery Purchases
As gold prices continue to rise, consumers are gravitating towards lightweight and daily wear jewellery. Joy Alukkas, chairman and managing director of Joyalukkas, noted that foot traffic in their stores remained steady, with shoppers making both everyday purchases and bridal selections. Ramesh Kalyanaraman, executive director at Kalyan Jewellers, observed a balanced demand for bridal jewellery alongside traditional purchases like gold coins and lightweight designs. Markets in Northern, Western, and parts of Southern India have particularly shown strong demand, reflecting a shift in consumer behavior towards more practical and affordable options.
Promotional Strategies by Jewellery Brands
To attract customers amid rising prices, jewellery brands have introduced various promotions. Malabar Gold & Diamonds is offering discounts of up to 30% on making charges for gold, as well as similar deals on diamond values. Joyalukkas has also provided customers the opportunity to lock in gold prices from Sunday, making it easier for consumers to manage their purchases. Additionally, some brands are leveraging quick commerce platforms to enhance accessibility, allowing for last-minute purchases. Kalyanaraman highlighted the importance of their partnership with Swiggy Instamart in reaching consumers seeking convenience.
Shifts in Investment Preferences
The current market dynamics have led consumers to make more deliberate purchasing decisions, favoring lightweight jewellery and higher purity options, such as 24 karat gold and 999.9+ purity silver coins and bars. Samit Guha, MD & CEO at MMTC-PAMP, described this trend as a rational response to the elevated prices rather than a reluctance to buy. In terms of investment, digital gold, gold ETFs, and silver ETFs are witnessing sustained interest from both retail and institutional investors, who view precious metals as essential components of a diversified investment portfolio.
Projected Business Growth for Akshaya Tritiya
The Confederation of All India Traders (CAIT) projects that this Akshaya Tritiya will generate business worth over Rs 20,000 crore in gold and silver, surpassing last year’s figure of Rs 16,000 crore. Praveen Khandelwal, secretary general at CAIT, emphasized that rather than dampening demand, the high prices are reshaping consumer buying patterns. This shift is encouraging consumers to make more calculated and value-driven purchases, reflecting a broader trend in the jewellery market as it adapts to changing economic conditions.
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