Governance Now Masterminds

Drop in diamond demand: Assocham survey

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


#Diamond   #Nirav Modi   #Assocham   #PNB   #Punjab National Bank  
Pixabay
Pixabay

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.
 

Comments

 

Other News

There is huge hunger for news, says Ashish Bhasin

India is a news-hungry nation with more than 1 lakh newspapers, apart from many news channels. News consumption is high – more so in smaller cities, and the industry needs to capitalize on its huge untapped potential, believes Ashish Bhasin, CEO, APAC, and chairman, India Dentsu Aegis Network.

Amnesty wind-up: NHRC notice to home ministry

As the Amnesty International downs the shutters on its India operations, the National Human Rights Commission (NHRC) has taken suo motu cognizance of the matter and sought the home secretary’s response on the allegations levelled by the global organisation. Amnesty International in Ind

Covid-19 triggers research culture in Ayurveda, traditional medicines

The Covid-19 pandemic has brought the spotlight on the health-promotive and disease-preventive solutions of Ayush (Ayurveda, Yoga, Unani, Siddha, Homeopathy) disciplines. What has not come into the limelight is the emerging nationwide trend in the Ayush disciplines, of taking up evidence-based studies.

Derivative market for electricity in India: Will it lead to innovation or speculation?

The Indian electricity sector is going through an interesting phase right now. Many reforms are being introduced to increase competitiveness and transparency in the sector. The power market in India is a surplus market now and the spot prices are going down day by day. With all these indicators signaling a

A walk down the rich history of Ayurveda

The Indic Quotient: Reclaiming Heritage through Cultural Enterprise By Kaninika Mishra Bloomsbury India, 230 pages, Rs. 499    Over the past decade, India has seen a significant rise in passion for enterprise as well as pride in her

Is China gearing up for prolonged conflict with India?

International observers will keenly watch the Chinese Communist Party Central Committee meeting next month. The central committee is the highest organ of the CCP with a mandate to execute the decision of the National Congress which is convened once every five years.   Besides economy, r

Governance Now Masterminds

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter