Hyderabad: As business has consolidated in the hands of the big jewellers and brands, customers are getting a wider option in terms of design and pricing.
This is one of the major reasons for the survival of big brands as they have more inventory and more to offer a customer under one roof and they are also better able to handle any liabilities.
An expert explained, “The big jewellers are coming out with smart offers, schemes, and are planning huge gains in the festival season where their inventory for the full year can be handled. At the same time, for marriage purposes there are offers for exchange of old gold. They are also able to plan year long investments and earn rebate and know how to deal with the new tax system.
The big jewellers have larger margins to play around with. Hence, though the market is lean at present, the big jewellers have the ability to survive despite their liabilities.” But even for the bigger retailers and brands, the outward shine is maintained to ensure that customers walk in, but they have cut temporary staff, and incentives for the staff are not provided.
Trade war pushes price
The trade war between Untied States and China has added to the factors pushing up the price of gold in India.
Mr Satish Agarwal of the Telangana Gems and Jewellers Association said, “The gold price in India is affected as the exchange rate of dollar exchange rate has risen and this makes imports costly.” He said the US had reduced interest rates and that was leading to more people investing in gold. “Gold is being bought as there is a recession in the market. Geo-politics and changing dynamics are leading to this kind of prices,” he said.