The surge in gold prices, as compared to last year, could not dampen the spirit of consumers who thronged retail outlets and logged in online to get a piece of the glittering gold metal on Akshay Tritiya (10 May 2024).The cultural affinity for gold and the increased importance of Akshay Tritiya drove the sale of gold Jewellery, coins and even non-physical gold investments. Akshay Tritiya is called ‘Bin dekha Muhurta’. This means any auspicious work can be started today without consulting astrological charts. This day is most favourable to buy precious things especially gold jewellery.
Across the country, retailers said that overall positive sentiment was heartening. The cultural importance and significance attached to Akshay Tritiya drives sales of gold, irrespective of the gold price. With increase in gold prices there is increase in overall value of transactions; though there was dip in volumes.
As usual the frenzy of gold purchases could be witnessed in south India—n sea of humanity thronging retail outlets from 6 am. Additional retail staff and security personnel were deployed to handle these surging crowds. Jewellers from South India such as Malabar Gold & Diamonds, Bhima Jewellers, and Kalyan Jewellers saw strong demand during this year's Akshay Tritiya. Malabar Gold and Diamonds reported a 39% increase in sales, totaling Rs. 1361 crore. Kalyan Jewellers also noted robust revenue growth, with Bhima Gold experiencing over 50% sales growth compared to last year.
Varying reports from across the country state that out of the total jewellery sales registered, gold accounted for nearly 80 percent, underscoring its enduring popularity among buyers. Diamonds and silver, while comprising smaller proportions, still commanded a significant share at 15 percent and 10 percent respectively.
Compared to last year, jewellery and gold coins sales on Akshay Tritiya 2024 saw a notable increase – depending on who you asked- from 15% to 60%, attributed in part to the anticipation of rising gold prices in the near future.
Sales for Akshaya Tritiya on their website start 4-5 days earlier because customers expect their products to be delivered on the mahurat day. Also, despite soaring prices, what is helping jewellers maintain the sales momentum are offers including monthly payment plans and advanced booking options, which allow for locking in the price of gold before festivals.
Traditionally, people buy jewellery on auspicious occasions like Akshaya Tritiya. But that has been changing since the past few years: There is a notable uptick in demand for both coins and gold bars as well, which indicates the growing diversification in consumer preferences towards not only ornamental jewellery but also investment-oriented products.
When it came to which jewellery segment consumers preferred purchasing, the common refrain was lightweight jewellery. The lightweight jewellery segment garnered notable popularity, with consumers favouring delicate designs offering elegance and comfort.
While the ticket size for jewellery sales on online channels is usually Rs 25,000 to Rs 50,000, the average transaction value for online sales often goes up to Rs 1 lakh on auspicious occasions. Accordingly, mostly jewellery brands showcase online the lightweight jewellery range over heavier pieces in response to customer demand. The Joyalukkas Group, reported a 30 per cent increase in online sales than last year.
Additionally, jewellery pieces combining gold with natural diamonds attracted considerable attention, reflecting consumers' preference for a blend of traditional and modern elements in their purchases. Customers are gravitating towards lightweight, everyday diamond jewellery. From elegant earrings to versatile pendants and rings, simplicity is in vogue.
Noteworthy was the presence of wedding clients who awaited new ranges and special discounts, contributing to the overall sales momentum. There were reports of silver jewellery seeing high demand—including silver+ diamonds and silver+CZ.
Consumers went beyond the brick-n-mortar universe: they jumped on to the online bandwagon and ensured they bought gold on the auspicious occasion. Quick-commerce platforms did brisk business, but it is the legacy jewellery brands that notched a 30-50 per cent jump in online sales than last year.
Quick-commerce platform Swiggy Instamart’s head posted on X (formerly Twitter) that sales of coins on Akshaya Tritiya had by 12 pm surged by over 500% compared to sales on Dhanteras. The jump in sales had continued through the day.Zepto too posted that they have delivered 20 kilograms worth of gold and silver coins by 5 pm.
Legacy retail chains saw an online surge too. The Joyalukkas Group, reported a 30 per cent increase in online sales than last year. Similarly, a regional brand like WHP Jewellers, with 26 stores across Maharashtra, saw a 50-60 per cent jump in sales.
Fueling the surge in sales were the discounts and offers from the corporate retail chains to single store owners. Malabar offered up to 25 per cent discount on making charges for gold jewellery. Tanishq is offered 20 per cent discount on making charges of gold jewellery and diamond jewellery. Candere by Kalyan Jewellers offered a 20 per cent discount on diamond-studded items. Buyers also got a 5 per cent instant bank discount on select credit and debit cards. Joyalukkas too has introduced special offers, including a Rs 1,000 gift voucher on gold jewellery purchases exceeding Rs 50,000, and a complimentary Rs 500 gift voucher on silver jewellery purchases over Rs 10,000.Most of the offers were valid till 12 May.
The industry and trade are united I their opinion that consumer confidence has increased. Saiyam Mehra, Chairman – GJC said “Gold prices have risen by Rs 600-700 per 10 grams today. Consumers in the south Indian jewellery stores have lined up to purchase gold amid expectations of a further rise in gold prices. Millennials are buying light weight jewellery items. A large number of consumers have been seen buying heavy wedding sets to store jewellery items before gold prices rise further. Those interested in investment buying are seen purchasing gold coins and bars weighing 1gm to 1kg, depending upon their risk appetite.”
Rajesh Rokde, Vice Chairman –GJC said “Consumers’ confidence gets multiplied when they see a 25% increase in gold prices from the last Akshaya Tritiya to today. Tempted by the sharp increase, consumers have been seen diverting funds from other investment avenues to gold. The systematic investment plan (SIP) in gold has been introduced in the most recent past. But, we must buy gold as and when we find an opportunity to build gold inventory in proportion to our wealth. We recommend consumers to buy gold jewellery for duel purposes – wearing and investment.”
The surge in sales, and confidence of consumers is heartening. Trade and industry are buoyed by this positive sentiment—and are hoping this spirit continues into the festive season of Diwali.
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