The Dhanteras festival this year was robust, with people buying gold, jewellery and other items to give as gifts. The jewellery industry expects a 35% increase over last year’s business, on pent up demand. Although there was a lull in the sales around noon on Sunday because of the Indian-Pakistan cricket match, people started buying again when the match was over, and brisk trade was reported across the country.
On the auspicious Hindu day of Dhanteras, buyers were not discouraged by even high prices. It is a day when people buy gold and other valuable jewellery, which can range from silver to utensils.
On Sunday, the price of gold was ruling at Rs 50,139 per 10 grams in New Delhi. This is higher than the price of Rs 47,644 per 10 grams on Dhanteras day in 2021.
On a normal Dhanteras day, 20-30 tonnes of gold is sold. Not only gold was sold but other precious metals and jewellery also. On this auspicious day, people also purchase other items like vehicles or appliances.
This year, Maruti Suzuki India Ltd delivered over 21,000 cars on two days of the Dhanteras festival. This new feat was accomplished thanks to their senior executive director of marketing and sales, Shashank Srivastava.
This was around 10 percent higher compared to the previous year. However, it was still less than its peak years in 2018 and 2019. “The availability of vehicles with high demand continues to suffer from long waiting periods,” he added.
Based on recent trends, we expect to see a 10-15% increase in demand this year. This is due to high pent-up demand after the pandemic, All Indian Gem and Jewellery Domestic Council Chairman Ashish Pethe said.
On Sunday, the second day of Dhanteras, the India-Pakistan cricket match may have had an impact on jewellery markets. After the game ended, footfall increased and shops were abuzz with buying activity.
The World Gold Council’s regional CEO in India, Somasundaram PR, reported that sales on this Dhanteras were up by 15-25% as consumers regained their confidence in gold as a safe investment during the holiday.
It is difficult to tell the demand on a particular day, but it appears that Navratri and Dhanteras heralded the beginning of high demand. This increased demand should be reflected in other metrics in the next few weeks.
Maharashtra-based PNG Jewellers chairman and managing director Saurabh Gadgil said that the Independence Day festival helped boost sales and said he expects there will be a 25 to 30 percent increase in sales volume over last year.
It’s estimated that 80% of purchases were jewellery, and the other 20% was made up of bullion, which suggests that people are feeling confident about the economy again. It may also be a sign that people are starting to consume at an all-time high.
In a recent interview, Dinesh Jain, Managing Director at PM Shah Jewellers, said that the company has seen a huge demand and sales so far. He expects an increase of 30-35% in sales volumes and 40-45% value during this two day festival.
Jewellery stores across the nation will be open late on Sunday evening. Besides wedding jewellery, fresh inventory of gold necklaces and coins were seen. One notable trend in the jewellery industry was that most customers were paying with digital wallets, an industry insider noted.
Kalyan Jewellers India Executive Director Ramesh Kalyanaraman said they had a “robust” number of pre-bookings for the purchase of gold and gemstone jewellery this Dhanteras.
The Middle East has shown consistent performance in the last three quarters, and Dhanteras is doing well so far. The wedding season will peak next month, so the overall demand momentum is expected to continue to increase.
“Whenever Dhanteras rolls around, we love to take advantage of the discount offers and positive mindset our customers have,” said Suvankar Sen, CEO and Managing director of Kolkata-based Senco Gold and Diamonds. “Combine that with the increasing number of footfalls at the store and people are spending more on average than they did last year”. “These factors make this a very good time to be in business”.
“I’m expecting double-digit percentage growth for the season, with urban centres growing more than rural centres. This might be because of a weakened monsoon,” he added.
Aisshpra Gems and Jewels director Vaibhav Saraf said, “This year, we’ve seen more of a demand for lighter gold jewellery and coins. In total, we’re anticipating over 15% growth from last year.”
India’s biggest retailers, CAIT estimates that annual sales during Dhanteras were around Rs 45,000 Cr with the amount of jewellery sold at around Rs 25,000 Cr.
About Rs 20,000 crore worth of sales came from other markets excluding gold and precious metals. Further divided Rs 6,000 crore came from automobile, Rs 1,500 crore came from computer and Rs 2,500 crore from computer-related items; FMCG about Rs 3,000 crore, electronics and goods about Rs 1,000 crore; and about Rs 500 crores worth of sales were generated by kitchen items. CAIT said in a statement.
After the recent recession in the Covid-19 market, the Confederation of All India Traders has estimated that this year’s Diwali festival sales will have a business figure over Rs 1.5 lakh crores across the country.
Dhanteras is a Hindu festival that typically takes place in September. The trade for kitchen appliances and other kitchen items is about Rs 700 crore, while textiles, readymade garments and fashion clothes are worth Rs 1,500 crores during the festival, according to the report.