Gold Jewellery Demand Surges as Precious Metal Prices Cool Amid Market Reset
Demand for gold jewellery has seen a significant resurgence in June, coinciding with a correction in prices and the easing of geopolitical tensions across West Asia. After facing a period of dormancy due to sharp price increases and associated customs duties, sales are beginning to rebound strongly.At Dariba Kalan, one of Delhi’s premier jewellery hubs, foot traffic has increased substantially. Owners report that demand is robust as customers anticipate upcoming festival and wedding seasons.
##Market Rebound and Expert Viewpoints
The precious metal markets experienced a necessary correction from recent all-time highs. This fall in prices has been instrumental in driving the renewed interest among consumers for both jewellery and investment coins.
Gaurav Gupta, owner of Radhey Kishan Gopal Kishan jewellers and treasurer of the market association, confirmed that conversions and footfall remain strong in the markets. He attributed this bounce back to the impending festive season providing a perfect opportunity for shoppers.
Sandeep Kohli, CEO at Indriya Jewellery from Aditya Birla house, noted industry-wide positive shifts. He mentioned that demand has picked up strongly in the past two weeks following an initial slowdown caused by a 9 percent hike in customs duty.
##Corporate Players Report Robust Growth
The luxury and jewellery segment reported strong performance across key brands during the quarter. Branded players are seeing considerable momentum driven by consumer willingness to purchase despite cooling metal prices.
Kalyan Jewellers, based in Kerala, recorded significant revenue growth for its India operations during the June quarter. The company attributed this success to robust operating momentum and healthy same store sales growth across all major markets.
##Titan’s Portfolio Sees High Growth
For market leader Titan, the jewellery brand portfolio benefited from festive demand and Akshaya Tritiya. The company reported that average ticket sizes grew in high double-digits. Core jewellery categories like plain and studded jewellery individually clocked growth in mid-thirties.
Meanwhile, investment-led coin sales continued their strong double-digit growth trend throughout the period. This suggests sustained confidence from investors despite price corrections.
##Festive Calendar Drives Senco Gold Growth
Senco Gold, headquartered in Kolkata, cited a favourable festival calendar as a major driver of its revenue and SSSG. The celebrations spanning Akshaya Tritiya, Poila Baisakh, Baishaki, and Bihu provided crucial support for the business.
The commencement of the summer wedding season also contributed significantly to this robust growth reported by the jewellery firm in its quarterly review.
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