The survey found that 65 percent of jewellers in the unorganised market are shifting to traditional pure play gold and silver ornaments over diamond jewellery
GN Bureau | March 19, 2018
The PNB fraud involving Nirav Modi seems to have shaken the confidence of diamond jewellery buyers, especially from the unorganised jewellers, on purity concerns, resulting in drop in business in the trade, according to an Assocham survey.
While the well-known branded jewellery makers issue certificates of purity, bulk of the trade is still concentrated in the unorganised market, based on mutual faith between consumers and jewellers.
"This has been shaken and the consumers are not willing to take chances following a massive adverse publicity about the sector. Besides, the branded show rooms issuing certificates of purity are largely restricted in big cities; while there is enough purchasing power in the smaller cities as well," said a press release.
The survey done in major cities, found that 65 percent of jewellers in the unorganised market, (barring the big time corporates and big brand companies) are shifting to traditional pure play gold and silver ornaments over diamond jewellery as consumers face the crisis of confidence in its purity.
Most of the jewellers said that there is an increase in the number enquiries from customers for getting their pre-purchased jewellery re-checked for quality and authenticity of gold and diamonds. Jewellers also say that gold demand has taken a lead.
The overall share of diamond based jewellery in the market is expected to take on a significant share of the gold jewellery sales in the near future, reports say. The demand for diamond jewellery seems to have decreased by 10-15 percent within two months, Assocham said.
The jewellery makers using gold jewellery and investing heavily with new designs, reflecting changing consumer taste as consumers have become cautious about purity of gold and are holding back their purchases. Even antique designs are being done in this segment, the survey noted.
The recent incident has created a fear among customers who are enquiring about the quality of jewellery, especially diamonds. The consumers are shifting from diamond-studded jewellery to plain gold jewellery and appear to be wary of purchasing diamond jewellery, the Assocham survey revealed.
The survey covered 350 jewellery-makers based in Delhi-NCR, Mumbai, Ahemdabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun. Assocham also interacted with about 500 working and non-working women in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to gauge their shopping habits.
Can you guess the connection between Kuwait and the remote villages in Chittoor district of Andhra Pradesh? Hint: Wealth lures poverty. Kuwait has money and jobs, while the villages in AP abound with people who have no hopes of ever making it good. Whatever they may d
Defence secretary Sanjay Mitra reviewed the Indigenous Aircraft Carrier (IAC) project at Cochin Shipyard Limited (CSL) on Jul 19. During the onboard visit, Mitra was given a briefing on the progress of the aircraft carrier construction by warship production superintendent Commodore Cyril Tho
In order to boost domestic production of hydrocarbon resources, the centre has approved the policy framework for streamlining operations of production sharing contracts (PSCs) in pre-NELP (new exploration licensing policy) and NELP blocks. The policy framework includes special dispensation f
In its bid to indigenously develop petroleum certified reference materials branded as Bhartiya Niredeshak Dravyas, CSIR- National Physical Laboratory (NPL) has signed a pact with Hindustan Petroleum Corporation Limited (HPCL). It will not only ensure maintaining highest standard quality ecos
A total of 31.67 GW of renewable energy capacity has been installed through implementation of various renewable energy schemes and programmes in the last three years in the country. Indian Renewable Energy Development Agency (IREDA) has conducted several following studies with foreign assist
For a ban that arrived with a bang, it seems to be fading away even before it could take effect. The Maharashtra government has backtracted to allow groceries and general stores to continue to use plastic for packaging after shopkeepers associations complained to state environment minister Ramdas Kadam. Al