Jewellers will not be largely spared from the Corona blues.
Covid-19 has changed the way we look at things. Not only has the global pandemic affected our lives in unimaginable ways, but has also impacted our habits. From work to shopping, every avenue possible has taken a blow.
While the various sectors of the world try to cope up with different challenges, if there is one an industry that has remained fluid for many decades, it is the Gem & Jewellery Industry. Famines, floods and other natural disasters have not been able to affect it greatly, as the demand for jewellery has always existed and the artisans & jewellers have always pushed themselves harder to meet the demand.
So, what lies ahead for the industry that has survived all odds weathering an economic crisis, with nations building respective strategies to sail through, the jewellery industry is witnessing a slowdown. We got in touch with the industry biggies to know what the future holds for the jewellery industry and here's what they had to say, ’Purchases will remain largely unaffected despite the new normal with wedding ceremonies being a close-knit affair.’
Another interesting factor that has made jewellery makers optimistic is the fact that nowadays the wedding celebrations are witnessing a shift in trends towards smaller ceremonies; they will certainly look at gold as an embodiment of an auspicious memorable, especially for weddings. The weddings are diminishing with fewer people and the focus in all likelihood will shift to jewellery as of now becoming need based rather than indulgence based. Brides would come to expect more jewellery from their families as it would be a safe say. The future of jewellery in India looks promising as it has begun again post-covid.
These unprecedented times have certainly affected the jewellery industry and we will have to watch how the market reacts.
From considering gold as a mere investment to feeling pride in owning the precious metal has evolved to a great extent. Changing times, we have witnessed different trends in the jewellery industry, only to desire more. Be it special occasions like weddings or auspicious days like Akshay Tritiya, with time, the customer demands will move from heavy jewellery buying during occasional and festive times to more minimalistic and every day wear spends on jewellery. As it is expected people will now spend less on travel and lifestyle expenses, buying jewellery will be safer investment.
In Indian weddings, jewellery will play as an important status symbol for luxury without making noise about it. The trend will continue forever.
Like any other industry, the business of the jewellery industry has also got affected by the unexpected pandemic but industry insiders feel this is just a temporary setback in FY 2020-21 for the jewellery industry as compared to other years. Also it presumed that Jewellery will mark their top position in the upcoming years.
Gold and silver has always been the safest bets to invest and buy more unspent income. The spark will return to the jewellery business. Currency is printed based on the gold reserves of any country, which means anything can fail but the jewellery industry will never fail. Investing in appreciating assets like gold which can be quickly liquidated easily at a fair market price and can be tracked from MCX.
This temporary phase will soon end. The jewellery and gem industry has been impacted but we are seeing some green recovery post the lockdown. There is still uncertainty; we believe there will be both emotional and rational intent to purchase gold as it is considered to be a haven for investment. The world has seen worse times when kings, politicians and heads of states fought against various enemies, weathered natural calamities and war etc. The jewellery was and will always be regarded as an investment. Even in the years where the country was facing recessions in the market, the jewellery industry’s issues were tackled based on the treasury and investment.
When the barter system started, it was based only on precious metal and we cannot be blind to what has existed as a symbol of security.
We are witnessing a surge in sales, which can be attributed to a demand which unprecedented in sales. It is estimated that the gold rates will go high in coming times. Hence, I feel that there is a possibility that it might be a wedding season, or people been repressed for some time which might have resulted in revenge buying. The celebratory mind-set of our returning customers looking to celebrate personal milestones will also add to the demand.
Customers used to destination weddings are now looking at the situation, and with the trend of destination weddings declining, the budget for the same could be diverted towards jewellery. I think brides will now spend more on gold jewellery as gold is becoming very promising security for anybody.
While history hints to hope, the digitization of the jewellery industry has also brightened prospects for the future. We feel that we will see a shift in the current of the weddings planned in the March and the June quarters which have been deferred to the December and March quarters respectively.
We expect the demand to rise further and believe the share of wallet for wedding jewellery towards searching and shopping for jewellery would increase consciously. Definitely, technology will play a significant role in the future.