Poll code takes sheen off jewellery sales in TS

Hyderabad: Will rise in gold prices affect the yellow metal’s sales? This is a frequently asked question whenever there is an increase in gold price. But consumers have always absorbed the rise in gold price and history has been the proof. So, despite increase in gold prices, gold sales would have been buoyant this Deepawali, but for the Model Code of Conduct ahead of elections in Telangana scheduled November 30. This poll code has dampened the jewellery sales as police are confiscating case. As a consequence, transactions or purchases of jewellery have slowed down while online bookings for purchases to be made after elections are on the rise, say jewellers of Hyderabad. Speaking to Bizz Buzz, Pavan Mor, Director, Pavan Mor Jewellers, said: “There have been many incidents in recent past which have frightened our customers. Police in Telangana are confiscating cash above Rs50,000 and sending it to the Income-Tax (I-T) department for further investigation. Customers who were carrying jewellery to exchange and buy new one have ended up getting it seized. The highest sales period of the year has been hampered due to this. We have tried communicating our concerns with the related departments, but it did not work out.”

To counter gold pricing, Pavan More Jewellers had ventured into lighter weight jewellery. While token buying can be witnessed before Dhanteras, Mor is confident that the wedding season in South India, post elections, will kick off jewellery sales.

“We are confident that after November 30, the business will pick up with wedding jewellery shopping. Official class and bureaucratic customers are selecting jewellery offline and making advance payment through online transfer. Online bookings are one and half times more this year as offline sales have fallen.”

A jewellery wholesaler here, Avinash Gupta is seeing a slow-down in Deepawali jewellery shopping. “With the increase in gold prices, jewellers have come forward in making jewellery suitable to the pocket of different consumer. The concern this festive period is the election code due to which our business has come down by 25-30 per cent,” Gupta pointed out.

Despite a short-term slowdown in business, jewellers are expanding presence in the city foreseeing an upbeat market for the safe haven. A fifth generation entrepreneur, Dhruv Goel, the Partner of 102-year-old Suraj Bhan Jewellery Hub recently opened a new store at Gachibowli. “Compared to last year, there is 10-15 per cent decrease in sales, we are hoping that it will pick up in the coming months. Till now, sentiment purchase for festival is anyways visible. Competition has increased from past couple of years, but looking at the future prospect, we opened a new store in the IT hub targeting software employees.” While many jewellery stores are facing the heat of a lull in business this November, a few have seen some early sales.

“In Hyderabad the shopping for jewellery starts with the onset of Dasara, followed by Deepawali, and later the wedding season. In October there was a dip in gold price during which many customers bought gold coins. Now, they are exchanging those with jewellery. I have registered almost 20 per cent increase in sales as most of my customers have already selected and placed their orders. Customers are placing their orders and paying advance now, later they will collect their order,” says Divya Rakshita Naineni, founder, Sri Rakshita Diamonds and Jewels.