CHENNAI: Kerala-based jewellery retail chain Kalyan Jewellers has reached 85 per cent of its pre-covid level sales in July, driven by increased demand for wedding jewellery. Despite rising prices, consumers are not hesitating to buy the yellow metal but instead investing more in it, said Ramesh Kalyanaraman, executive director, Kalyan Jewellers.
“Sales have picked up and we are witnessing a quick recovery. We are pleasantly surprised after noticing good ticket size increase in wedding jewellery purchase. Customers who had done pre-wedding booking with us, are now spending at least 35 per cent more than the booked amount. Those who are getting married during the lockdown are diverting the money meant for other expenses on jewellery, which has boosted sales,” Kalyanaraman told TNIE.
In fact, the surging prices of the yellow metal has not deterred customers from making big purchases. “When gold prices rise, people in India tend to spend more on it. People see it as a safe bet of investment during the chaotic, uncertain times. Many who usually spent their salaries on pleasure trips and other entertainment, are preferring to invest the money in gold amid the pandemic,” added Kalyanaraman.
Besides, when the lockdown was announced it was peak business time, coinciding with summer weddings and Akshaya Tritiya around. The pent- up demand of gold also helped the company in faster revival
as lockdown were gradually relaxed. In July, about 77 of Kalyan showrooms were open while in August almost 85 per cent out of its total 107 showrooms, are operational.
To leverage its sales further, Kalyan has been focusing more on digital advertisement campaigns along with introducing new sales methods like video calling, and virtual try ons, among others. The jeweller further plans to increase its digital ad spends from 2 per cent to 5 per cent this year.
Gold falls over 10% in two days, recovers later
After rallying for months, Gold prices fell over ten per cent in the past two trading days (lows) on account of profit booking and Covid-19 vaccine developed by Russia. On the Multi-Commodity Exchange (MCX), October gold contracts were trading below Rs 50, 000 per 10 gram in early morning deals. Last week, gold prices in India had jumped over Rs 56,000. Later in the day, however, gold prices witnessed healthy recovery and closed the trading at Rs 52,000.