The increased interest in buying gold amid falling prices for yellow metal leads to a decrease in sales of diamond jewelry, as was observed in the first quarter of the financial year (April through June), the top manager of the jewelry retail network said on Monday Daily News.
"We saw a decline in sales of diamond jewelry up 18% in the first financial quarter, while in the same period last year, sales grew by 26%, and further growth is expected to decline, as gold prices fall, interest in gold products, "- said the sales director of Tanishq Sandeep Kulhalli (Sandeep Kulhalli).
Tanishq is a division of Titan Industries and is engaged in sales of branded jewelry with diamond jewelry, in the target audience of the company modern middle-aged women predominate.
About 40% of gold is sold in India in the form of coins, ingots and investment tools, the remaining 60% is used for the production of jewelry. Gold turnover in India is estimated at $ 37 billion, and the share of diamond products is $ 5 billion.
"The gold and diamond business is now undergoing a turning point - the government has intervened in the jewelry industry, trying to reduce gold imports and reduce the trade deficit, the price of gold is falling, and consumer preferences are changing, which will have an impact on the growth strategies of jewelery industry participants," - noted Kulkhally.