Kochi: Gold jewellery sales are projected to shine brightly this Onam season, with experts forecasting total sales to reach between Rs 7,000 crore and Rs 8,000 crore. This surge accounts for around 8% of Kerala’s annual gold sales, which typically amount to Rs 1 lakh crore. Despite high gold prices, jewellers across the state are optimistic about a 20-30% increase in sales value, driven by the convergence of the wedding season and Onam celebrations.
The timing of Onam at the end of the Chingam month, along with weddings, is fueling robust gold purchases, with customers opting for large quantities ranging from 20 to 100 sovereigns. Some high-net-worth individuals are even buying between 160 and 200 sovereigns. According to T. S. Kalyanaraman, Managing Director of Kalyan Jewellers, Onam’s overlap with employee bonuses has significantly boosted sales.
Impact of Duty Cuts
The reduction in gold import duties has played a vital role in encouraging advance bookings. Gold prices, which fell from Rs 55,000 to Rs 50,400 following the Union Budget announcement, have made the market more accessible despite recent surges. M. P. Ahammed, Chairman of Malabar Gold and Diamonds, reported a substantial rise in domestic sales, driven by lower customs duties and reduced smuggling.
Changing Trends in Gold Purchases
With soaring gold prices, there’s been a noticeable shift towards 18-carat gold, which offers more affordable options compared to 22-carat. Additionally, the popularity of diamond and lightweight jewellery has risen, particularly among younger consumers. Joy Alukkas, Chairman of Joy Alukkas Group, confirmed this growing trend in demand for cost-effective, elegant designs.
Attractive Offers Driving Sales
Jewellers are rolling out appealing offers, including discounts on labour charges and exchange deals on old jewellery, to attract customers. Jose Alukkas, Chairman of the Jos Alukkas Group, reported an influx of new customers benefiting from these enticing exchange offers.
