Sales for retailers have been low, but you know that when sales of gold jewellery by Indians have decreased Indians there really is an economic downturn.
Titan Co. Ltd’s, which contributes to about four-fifths of the total revenue for jewellery, has witnessed its worst performance in a very long while. Jewellery volumes declined by 21% compared with the year-ago quarter. Tribhovandas Bhimji Zaveri Ltd and PC Jeweller Ltd also experienced a disappointing December quarter. These three jewellery companies were the major contributors to the bad news.
“Indian gold demand in 2013 was skewed in the June quarter while there appears to be a sharp double-digit decline in the last two quarters,” according to Citi Research analysts.
As a consequence, jewellery companies have been offering discounts and attractive schemes.
Analysts warn that unless there is a healthy rise in consumption, gold jewellery sales are likely to remain low.