Despite weak economic environment and poor monsoon, franchisees are hopeful of better jewellery sales than last year ahead of Dhanteras and Diwali.
Despite weak economic environment and poor monsoon, franchisees are hopeful of better jewellery sales than last year ahead of Dhanteras and Diwali.Jewellers also expect more demand for investment-related items like coins and bars following the launch of three schemes by Prime Minister Narendra Modi earlier this week. However, franchisees feel people like every year will continue to buy jewellery offline on Dhanteras as it considered an auspicious day to buy precious metals. And online sales for coins being sold by players like State Bank of India may also see good revenue generation.
“We are positive about the jewellery sales. We hope it will be more than the last year. Sentiments are attached to the day of Dhanteras so people will buy jewellery it in good numbers. We have got to know that people are also buying coins from SBI,” Vinod Kapoor, a franchisee of Tanishq, shares with Franchise India.
For some franchisees, the year has witnessed a revenue drop, but they have started seeing a spike in sales for about last two months. And with Dhanteras here and festive season on, jewellers believe more sales will witnessed and the market is going to get a push.
“The demand has started picking up since last 10 days and the softening of prices will bring a positive boost to the industry and will overrule the hurdles like weak monsoon,” World Gold Council Managing Director (India) Somasundaram PR tells PTI.
Also, the three schemes announced by the Prime Minister are also expected to create a positive environment in the market. Modi has rolled out three ambitious schemes - Gold Monetisation (GMS), Sovereign Gold Bonds and Indian Gold Coin & Bullion - to reduce the physical demand for gold and fish out 20,000 tonnes of the precious metal worth $800 billion lying idle with households.