Ahmedabad: The gleam seems to have gone out of festival sales, Ahmedabad’s jewellers fear.
They feel this Diwali could be their weakest since the pandemic as sluggish demand has forced traders to cut orders despite encouraging bookings at exhibitions earlier this year.
Virendra Soni, vice-president of the Jewellers’ Association Ahmedabad (JAA) and chairman of a gold jewellery manufacturing company, said manufacturing orders were down by about 20% from last year.
Industry participants said business-to-business bookings were encouraging at exhibitions held in July and Aug. Consumer demand, however, has failed to pick up in recent weeks, prompting jewellers to scale back production plans amid uncertainty over sales and fluctuating bullion prices.
Nine to 14 carat gold jewellery with lab-grown diamonds is popular,” Begani said.
“Retail demand has not started as expected during Navratri season, and there is a fear that Diwali demand may also remain low,” Soni said. Ahmedabad jeweller Kalpanik Choksi said buyers are holding back amid price volatility. Many have reduced their jewellery order size ahead of Diwali,” he said. JAA president Jigar Soni said overall demand remained slow, although some purchases were expected during auspicious festive muhurats. Haresh Acharya, director of the India Bullion and Jewellers Association (IBJA), said retailers are shifting focus towards lightweight designs, affordable alternatives and multi-metal options. He expects festive demand to rise during auspicious muhurats, but said the increase would largely be driven by gold bars and coins. Param Begani, director of a lab-grown diamond jewellery retail chain, said, “There is growing demand for lab-grown diamond jewellery among youth.
“Retail demand is very less and it may be the lowest since Covid. Gold prices are fluctuating a lot, so jewellers are cautious. Jewellery purchases, he added, remained restricted. In contrast, lab-grown diamond jewellery is gaining popularity, especially among young customers.
