Jewellers offer host of freebies to lure customers as growth dips this festive season

KOLKATA: This festive season you can a win a trip to Dubai or get a brand new Skoda with the jewellery you buy. Jewellers are offering a host of freebies to lure customers as growth has halved this festive season due to volatility in gold and the liquidity crisis that has hit the economy.

Talking to ET, RK Sharma, chief operating officer of Delhi-based PC Jeweller said, "In 2012, we had witnessed a growth of 20-25% over 2011. But this year we are expecting a growth of 10-15%. The extreme volatility in the yellow metal is affecting the market sentiment. Despite this scenario we are expecting good sales from semi-urban and tier-2 cities."

Rural demand is expected to play a key role this year for gold consumption to go up this festive season. "Gold is considered as the only safe asset in which rural folks invest. They do not have any other investment option. This year the monsoon has been good and therefore good demand is expected," said Amit Sampat, director, Pushpak Bullion.

Prices of gold have witnessed a rollercoaster ride in the current fiscal which has affected demand in urban areas where people have other instruments to invest. Prices went down to Rs 26,000 per 10 gm in May and then again it went up to Rs 33,000 per 10 gm in August-end as the rupee weakened against the dollar. Again in September, prices climbed down to Rs 29,000 and now it is hovering around Rs 31,000 per 10 gm.
PC Jeweller has announced schemes which offer free gold coins, discounts, bumper prizes and other prizes on buying jewellery of a minimum amount. The schemes which will run from October 5 to November 5 have prizes ranging from 36 Skoda cars to diamond jewellery and silver coins and will be available in all the 36 showrooms of the company across 28 cities. The freebies come at a time when buyers are facing a shopping dilemma due to high gold prices together with the nearing Diwali festival which is considered the most favourable day for buying ornaments.

The offers vary from 1 gm gold coin on purchase of Rs 30,000 worth diamond jewellery and a 0.5 gold coin on purchase of gold jewellery worth Rs 60,000. PC Jewellers is offering an extra discount of 5% on the purchase of diamond jewellery on and above Rs 2 lakh on a single invoice. "We traditionally offer gifts during festive season and this year too we are doing that," said Sharma.

Maya Jewels by Gitanjali, a jewellery showroom that brings together the best jewellery brands in the country, is wooing customers by offering them a range of exclusive gifts at any of their stores pan-India. Their gold jewellery making charges start from 8% onwards. On every purchase, Maya Jewels is offering a 2 nights and 3 days hotel stay free in India across 46 cities and 60 hotels. Besides the travel vouchers there are also bag and watches available for purchase.

Mehul Choksi, chairman, Gitanjali Group said that though there is a pick up in diamond jewellery, gold sales is down by 30% compared to 2012. "And we do not see a sudden surge in demand coming this festive season. The mood is very bearish."