Jewellers are expecting good sales this festive season as consumer sentiments revive and gold prices take a dip. The industry has turned bullish on ad spends, hoping the festive season will kick-start a revival in the market as the wedding season is also approaching.
The industry believes the ongoing shift in consumer preference from the unorganised sector to organised jewellery brands will also give a much-needed push to the sector’s overall growth.
Suvankar Sen, CEO, Senco Gold and Diamonds, said consumer sentiment is very positive towards the category.
Gold price is down by 10% from its high and consumers are planning their wedding jewellery buying and festive buying.
Jewellery purchase for weddings is usually made on auspicious days and the drop in price has brought cheer for both buyers and sellers.
“The adex boost will surely be upwards of 20-30% year on year from last year unless a third wave hits the markets. The adex would reach 70-80% of pre-Covid levels,” he said.
The brand hopes if another wave doesn't hit again, it should be in a position to recover a lot of its lost sales this festive season.
Having seen a very good response from customers ever since the lockdown has lifted this year, Dipu Mehta, Managing Director, Orra, too is optimistic about the upcoming festive season.
He said given the emotional connection Indian consumers have with jewellery, there will always be a positive sentiment, especially around festive occasions.
“While there may not be a large increase in the adex, the market will definitely aim to be on top of mind during the festive season as it is the key season for all jewellers,” he said.
Last year, according to reports, jewellery brands spent nearly Rs 450 crore on advertising across platforms and offered discounts/deals to convince customers to invest in gold or jewellery amid the pandemic.
This year, though the pandemic is still present, the market is optimistic about the revival in terms of both growth and adex as the Covid numbers have come down.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, said the brand has witnessed encouraging recovery trends in customer footfall in its showrooms that reopened after the second wave.
Its revenues in June 2021 were significantly higher than that of the previous year (2020), adjusted for store operational days.
“In Kerala, we are witnessing an uptick in customer footfall across our showrooms as lockdown restrictions have eased. We are expecting a good recovery this Onam, backed by overall consumer sentiments, the upcoming wedding season, falling gold prices as well as the ongoing shift in consumer preference from the unorganised sector to organised jewellery brands. The implementation of mandatory hallmarking by the Government of India is expected to further accelerate this trend,” he added.
As seen even during the pandemic and lockdown, the festive season acts as a catalyst of growth for the gems and jewellery industry.
Richa Singh, Managing Director, India, Natural Diamond Council, said small or big, a majority of Indian households do tend to buy something during this period for themselves or their loved ones. After being in isolation and away from their loved ones, consumers are looking for avenues to express their feelings and celebrate every moment. They want to buy something or gift someone things that are meaningful or will hold an emotional value.
She said, “Industry research and the recent results of publicly quoted companies demonstrate that diamond jewellery is now leading the luxury market in terms of growth since 2019 in both the US and China. I hope that India too starts to see a similar positive sentiment. We will see more people choosing fewer but better things that last and which help them express their love and emotion. Natural diamond jewellery is a perfect fit for such a need.”
For NDC, the ad spends will match pre-Covid levels this festive season.
TV, print and digital lead ad spends
Sen said that as a smart spender, the brand has to spend and monitor the response at online and offline channels and be aware of the consumer sentiments and mood and take decisions accordingly.
Its ad expenditure would be a combination of print, TV and digital for this festive season.
“Innovative digital mediums with a direct-to-consumer approach would have a larger share compared to previous years. The marketing strategy has to be to inspire the customer and make them aware of the product and category. Tactical campaign with a wedding and product focus is what will drive sales. The crisis has forced us to think digital, enabling us to serve customers physically and digitally.”
Mehta said the brand is optimistic this time and hence will maintain its visibility during the festive season.
“As a brand, we believe in 360-degree communication and our festive marketing plan will be on the same lines. It is prudent for a brand to first understand what media their consumer consumes and accordingly tailor-make their plans and ensure that they have an agile attitude towards marketing,” he added.
NDC will continue to use digital as the key medium of communication through its website and social media handles, with a renewed focus on TV and print as well.
“Be it television, OOH, radio or digital, I expect jewellery advertising to be present across all mediums,” Singh said.