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

How inequality keeps rising amid pandemic – and is killing people

The world’s ten richest men more than doubled their fortunes from $700 billion to $1.5 trillion (at a rate of $15,000 per second or $1.3 billion a day) during the first two years of a pandemic while the incomes of 99 percent of humanity fall and over 160 million more people forced into poverty. A new

Vistadome coaches on Central Railways a hit with passengers

The Vistadome coaches on Central Railways have received an overwhelming response from passengers. Not only have they boosted tourism and registered an occupancy of 20,407 passengers but also clocked revenue of Rs.2.38 crore between October and December 2021.   The CSMT-Madgaon-CSMT Jansh

Omicron on relentless run: India records 2.68 lakh cases

India is once again caught in a spike of Covid-19 cases, with the highly transmittable omicron driving numbers. The total cases in the country continued to increase on Saturday, recording 2.68 lakh cases in 24 hours. India`s active caseload currently stands at 14,17,820 or 3.85%, while the r

Bill Gates, charity and the dilemma of already successful people

Mantra and the meaning of Success By Rajesh Talwar Bridging Borders, 288 pages Rajesh Talwar, who works as Deputy Legal Adviser to the United Nations Mission in Afghanistan, has written 31 books, and on January 15 he is releasing one more. ‘

An inquisitive reader’s guide to Ramayana, Mahabharata and the Puranas

Essence of the Fifth Veda By Gaurang Damani Divine Destination, 234 pages, Rs 350 ‘Veda’ literally means ‘knowledge’.

Humility: Going beyond binaries to deliver justice to tribals

Being Adivasi: Existence, Entitlements, Exclusion [Part of ‘Rethinking India’ series] Edited by Abhay Flavian Xaxa and G.N. Devy Penguin, xxvi+182 pages, Rs 699 ‘Being Adivasi: Existence, Entitlements, Exclusion’ (Penguin India), edited by

Visionary Talk: Farmer`s Agitation, Rakesh Tikait with Kailashnath Adhikari


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter