India’s gold jewellery demand has fallen by 2% to 147.9 tons in Q2 2018 as against 161.1 tons in corresponding period last year, according to World Gold Council report.
Last year, Q2 demand was higher due to impending implementation of Goods and Services Tax (GST) in July. In a longer-term context, Indian jewellery demand was relatively healthy, just 1% below the five-year quarterly average of 149.1 tons and 3% higher than average Q2 demand over the preceding ten years.
In April, there was some brisk buying in view of Akshaya Tritiya which is considered auspicious for gold buying. Wedding season demand also helped support the gold market but it did not have a positive effect due to weakening of rupee that drove prices up.
At the same time, China jewellery demand rose 5% to 144.9 tons in Q2 as the consumers preferred innovative, creatively-designed pieces over traditional jewellery.While traditional, plain 24-carat jewellery continues to dominate the market – accounting for around 70% of gold jewellery demand – the shift towards alternative, newer products continued. 18ct, 22ct, 3D hard gold and premium higher-carat products, such as 9999s (99.99% pure gold) jewellery, performed well.
A greater emphasis on service and branding is paying dividends among increasingly discerning consumers. The fledgling trend towards more innovative promotion, marketing and customer service gathered pace in Q2, with positive results. Retailers and manufacturers are investing much-needed resources into more effectively targeting and engaging key younger audiences. Jeweller CHJ Jewellery, for example, partnered exclusively with a popular TV series “Women in Beijing”, which follows the lives of young ambitious women living in big cities.
World gold jewellery demand fell 2% in Q2 2018 to 510.3 tons on fall in demand in Middle East and India but on a half yearly basis demand remained more or less unchanged at 1031.2 tons as against 1035.8 tons in first half of 2017.