What DeMo? Jewellers Buy More Gold Than Before
Latest B2B jewellers’ exhibition shows that buyers appear unaffected by demonetisation, .₹ 3-lakh cap on cash purchases
Mumbai: India’s gold demand in the ongoing wedding season has been robust, undented by concerns over demonetisation and the .₹ 3-lakh cap on cash purchases, according to the Gems and Jewellery Export Promotion Council (GJEPC), which has received encouraging response in the ongoing B2B jewellers’ show, IIJS Signature. The demand has prompted organisers to retract their decision to cut the duration of the show to three days from four.
GJEPC said orders placed by jewellers with ornament manufacturers at this year’s show will exceed last year’s .₹ 1,375 crore by at least 10%.“We expect orders to be upwards of .₹ 1,500 crore this year (at this year’s show),” said Sabyasachi Ray, ED, GJEPC. “That will be more than the .₹ 1,375 crore order value pegged by market researcher Ipsos last year.”
Another senior GJEPC official confirmed that “in light of the response” to the show, the organiser had decided to keep the show on for the full four days instead of three. The show is on from Feb 6-9.
“We expected demonetisation and the recent cap on purchases above .₹ 3 lakh to dent business and sentiment, but neither has happened going by the response we’ve got,” he said on request of anonymity as he is not authorised to speak with the press.
IIJS Signature is a variant of the larger IIJS that GJEPC organises in August every year ahead of the festive season between September and December, when 60% of India’s annual gems and jewellery sales, estimated at $39 billion, take place, according to Ray. Remaining sales happen from February-June, which is when de-
mand pick-up for wedding season compels retailers to restock. The IIJS Signature is held before this event.
The show witnesses participation by the likes of retailers like Tanishq, PC Jeweller, TBZ The Original, etc and Laxmi Diamond, a DeBeers sightholder which sells ornaments to some of the leading jewellers.
Biju Patnaik, head of the gems & jewellery business at IndusInd Bank, told ET that the “upbeat” response (to the show) proved that the adverse fallout from demonetisation and to a lesser extent from the recent cap on cash purchases appear to have “almost faded out”.
“People are using cheques and cards to purchase jewellery,” said Patnaik.
Ashok Gajera, partner, Laxmi Diamond, agreed. “Demand is most certainly improving and I think would get even better with time. That’s why jewellers are placing good orders at the show. Customers are getting used to cheque and online modes of payment.”