In view of the uncertainty in the market during the Corona period, buyers are preferring to buy gold from established stores instead of small shops. They are relying more on them in terms of quality as well.
Changes in the way you buy gold
Everything including the Indian economy is being affected by the outbreak of Corona epidemic. In view of the increasing uncertainty in the market, changes are being seen in the way of buying gold for some time now. Due to which retail shops are getting converted into modern stores. In this regard, Ramesh Kalyanraman, executive director of Kalyan Jewelers India Limited, says that thousands of small shopkeepers have an important role in the world’s second largest gold market. But due to the epidemic, shoppers are slowly getting away from small shops.
Demand for gold fell to a more than two-decade low last year, although it managed to regain its place in the first three months of 2021 due to a slowdown in gold prices and a sharp jump in economic activity. There was a lot of change in the pattern of buying in the January-March quarter. Especially for shopping related to the wedding, people chose the famous Gold Jewelery Shop. This is the reason why the profit of Kalyan Jewelers registered a growth of 54% during this period.
The company raised $158 million in an initial public offering in March, one of the largest share sales among Indian jewelers. As reported by TOI, Gyanasekhar Thiagarajan, Director, Comtrendz Risk Management Services, said, “The shift across national and regional brands is clearly on the rise as consumers feel more comfortable and secure in terms of quality, which is still on the rise with the unorganized sector. there is a problem.”
The reason for the increase in the purchase of jewelery from well-known brands is the increase in the process of digitization and exemption in Goods and Services Tax. The market share of established chains such as Tata Group’s Titan Company, Kalyan and Malabar Gold & Diamonds has improved due to measures to raise the quality standards by the government. Looking at these records, buyers have been inspired to buy jewelry from these places.
About 60% of Kalyan Jewelers home stores are located in South India. The Kerala-based jeweler plans to add a dozen more stores in the country this year. It plans to open more stores outside South India. The transition to these chain stores is expected to generate higher revenue.
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