There is no secret that the gold markets are losing their charm. In the last few years, there has been a huge decrease in the gold sales. But, gold imports are swelling at a decent rate, which has been a trend in the recent time.
With the onset of wedding season, the rush in the gold markets used to increase drastically. However, the scenario has changed quite a lot. The wedding season has hardly changed the plight of gold markets, which keeps haunting the industry. A number of gold bazaars including the famous markets of Delhi, Mumbai and Bangalore had to bear the brunt of decreasing sales. But, organized players like Rajesh Exports have hardly been affected, which can be seen by the strong results posted by the company.
Around 35,000 weddings took place in the month of November and December respectively. While a slight increase in gold demand hardly made a difference for unorganized jewellers, Rajesh Exports witnessed a major increase in sales. Apart from Rajesh Exports, other organized jewellers were also overwhelmed by the change in buying preference of the customer. The customers have realized that it is important to buy from the organized players, as there is less danger of unethical practices.
Apart from this, high prices have also played a part in the dipping gold sales. Many customer are exchanging the old jewellery instead of buying a new one. But, there is still a scope for those jewellers, who are providing good quality products combined with a good buying experience. Pre-demonetization era has presented a challenge for those jewellers, who were selling low quality gold with fake bills. The customers have been cautious of falling in the trap of such jewellers, after realizing the importance of buying hallmark gold products only. The hallmark serves as a certification of purity, so there is no risk associated with such products.
Usually, small jewellers often try to make huge profits by selling low quality gold. This is the reason behind the shift in buying preference of customers, who are preferring big jewellers like Rajesh Exports to save their hard earned money. Big jewellers are offering other schemes as well, which are driving the attention of buyers. They are focused on providing value added service, to sustain the growth. They are taking the business from small jewellers by selling low range products starting from Rs 2,000.
The experts believe that the scenario can be changed by making shopping a lot more experiential. It is not only about selling a product, it is about creating a relationship with the customers for the sustenance of gold industry.
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