Jewelry market is showing the signs of recovery that suffered a lot since November due to the government demonetization Program. But from last week the market is picking up and things are normal again. Now Customers are coming for wedding shopping.
The jewelry wholesale market dropped when Prime Minister Narendra Modi abolishes high currency notes on November 8. The jewelers depleted their inventory after steady sales during the Diwali festival, but sales dropped after that and the wholesale jewelry market was completely dipped.
Jewelry orders have improved at this week’s Signature India International Jewelry Show. Although the sales at the show were down about 20 percent as compared to the last year.
It is expected that the jewelry market will still take another six months to return to its old levels. Wholesalers are giving discounts to the customers so as to attract them back in the market.
At Signature IIJS the gold sales were better than studded jewelry. The Diamond jewelry is still facing problems in trading and no large diamond suppliers participated in the show. Buyers choose lightweight gold jewelry.
In 2016 except for demonetization, retailers also suffered for two months in April and May where they protest for 1-percent excise duty on jewelry sales. Overall 2016 was a difficult year for jewelry retailers.
According to the World Gold Council (WGC), the demand for Indian gold jewelry fell by 22 percent to 514 tonnes in 2016. But now WGC is improving gradually.
There are some rural areas where the gold and jewelry demand as well as in this area the war on cash hits household less.
At Signature IIJS show the traffic was low in quantity but high in quality. The jewelry market will take some time to recover, but people started to buy the jewelry again.