The current holiday season, which follows two years of COVID, has given jewellery stores that specialize in gold, diamonds, and platinum cause for optimism. Jewellery brands anticipate strong holiday sales this year after observing a surge in July. To reach more consumers, manufacturers are expanding their marketing efforts and creating more outlets.
"As we emerge from the COVID-19 shadow, we anticipate a rise in demand throughout the holiday season. According to Kushal Singh, head of marketing at Melorra, "We are opening stores in eastern India (West Bengal, Orissa, Bihar, and Assam), which would gain from both Pujo and Diwali." By the conclusion of current fiscal year, Melorra expects to open 60 outlets, and 350 by FY26.
The Retailers Association of India reports that jewellery sales in July were 36% higher than they were in the same month last year. This is true despite the gold price's unpredictable swings. 10 grams of gold had fallen to 51,860 by mid-July. Since they are also considered as investments, falling prices are normally good news for buyers, but if they are inconsistent, they may get uneasy. Additionally, they have been rising gradually since late July, and it picked up speed in August. However, according to Singh, this influence is just momentary.
Despite rising gold prices, Singh noted that India has historically increased its imports of gold. During the holiday season, the majority of demand, according to him, will come from Tier I and II cities. Kalyan Jewellers looks for a repeat of the previous quarter's results and anticipates an improvement moving forward. In the April to June quarter, it posted a net profit of 108 crore and consolidated revenues of 3,333 crore.
"July has been excellent, with better momentum than Q1. We have strong aspirations for Q2 because of the wedding and holiday seasons in the South and since July has been acting very well in India and the Middle East, according to Ramesh Kalyanaraman, executive director of Kalyan Jewellers.