In the year 2023, there may not be a rise in the price of gold like last year, but even after that there has definitely been a slight break in the purchase of gold. There is only one reason for this and that is the prices which are currently between Rs 59 to 60 thousand. This is the reason why gold is now being purchased on EMI in branded retail stores in India.
There has been an increase of more than 50 percent in the growth of gold purchase in EMI. Due to which there has been an increase in the earnings of these branded retailers. In which both Tata and Reliance are included. Under the Jewelery Purchase Scheme, consumers deposit a fixed amount with the jeweler every month and get gold jewelery worth that much amount within a time limit. This is a kind of EMI scheme. In which you can buy gold jewelery by depositing a little money every month.
Increase in gold purchase in EMI
Tata Group's Tanishq brand received Rs 3,890 crore through deposit scheme in the financial year 2023, which is 44 percent more than Rs 2,701 crore in the last financial year. According to the latest annual report, Reliance Retail has earned Rs 282 crore from selling gold in this way, which was more than Rs 184 crore a year ago. Usually, retailers also offer some discount on installments as an incentive to the depositors. For example, Tanishq's Golden Harvest offers up to 75 percent discount on the first installment for a 10-month plan.
Even regional chains have adopted monthly deposit schemes. Pune-based PNG Jewellers, which operates 42 stores in Maharashtra and Goa, got Rs 700 crore in FY2023, which is 27 per cent more than FY2022. Kolkata-based Senco Gold received Rs 192 crore as deposits last financial year, which is 89 per cent more than a year ago.
Increase seen in the first quarter
Titan Company CEO Ajoy Chawla said that Covid had affected the gold jewelery purchase scheme, but now it has gained momentum. In the April-June quarter of this financial year, nominations in the scheme increased by 50 per cent compared to the same period last financial year. Chawla said that the share of jewelery purchase plan in Tanishq's sales was 19 percent in the last financial year and it is expected to go up to 21 percent this year.
Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said that about 20 per cent of their sales come from gold purchasing scheme jewelery purchases. He said that initially there was a huge decline in sales due to the increase in gold prices, but soon the customers got accustomed to the price. We are expecting more nominations in this scheme in the upcoming festive season.
WGC's estimate regarding gold
According to the World Gold Council, India's total gold consumption declined by 2.9 percent in calendar year 2022 to 774 tons in 2021 from 797.3 tons. This year, the council estimates a 10 per cent year-on-year decline in gold demand, the lowest in three years, due to a decline in retail purchases due to record high prices. After the US banking crisis, gold prices increased from Rs 55,300 per 10 grams in January to Rs 60,000 per 10 grams in March. After that the price of gold has come down to Rs 59,200 per 10 grams. Chawla said that the market is unstable. He said that earlier people used to buy gold throughout the year. Now it is bought only on special occasions. Be it Akshaya Tritiya, Onam, Dhanteras, Durga Puja or any wedding in the family.
No comments:
Post a Comment