Jewellers offer discounts, cashbacks, exchange to woo buyers

NEW DELHI: This festival season you will be able buy more jewellery for your buck.

With a slight dip in gold prices expected to fuel sales of the yellow metal this festival season, jewellers have come up with innovative offers to tap the increase in demand.

Gold prices have plunged almost 6% in past month, from ₹31,435 per 10 gram in September to around ₹29,650 per 10 gram this month.

Ratan Tata-backed jewellery portal Bluestone.com has started a first-of-its-kind exchange offer under which company representatives will go to customers’ houses with a caratage machine — used to measure the purity of gold — and exchange the jewellery at their convenience.

“Indians are fond of using their old jewellery to buy new one. We are getting about 40 calls for home visits every day for one-the-spot valuations,” said Arvind Singhal, chief operating officer at Bluestone.com. “We service upto 7,000 orders in a month... it is expected to go up by four times this festival season.”

Tata Group-owned Tanishq is also offering a 20% discount on making charge for gold jewellery and 5% cash-back on payments through State Bank of India credit and debit cards.

Meanwhile, Kalyan Jewellers has launched a membership programme with members not having to pay making and wastage charges.

Online portal Caratlane.com is offering try-at-home options with faster delivery options and a one-month return policy.

State-run MInes and Mineral Trading Corporation (MMTC) also plans to cash in on the demand by launching an aggressive advertising campaign. “Demand for gold was very low for the last 18 months. But we have seen consumers coming out in last the few days. We expect sales to increase by 15-20% this year against the sales last year despite higher prices,” said Ved Prakash, director, MMTC.

After a lull of four years, the demand for gold is expected to go up due to an above-normal monsoon and the implementation of seventh pay commission recommendations.

According to jewellers’ lobby, All India Gem & Jewellery Trade Federation, sale of gold jewellery is expected to increase 40% in price terms and 20% in volume terms this festival season.