Gold Prices Won't Dampen Indian Demand This Festive Season
Gold prices may not dampen demand during India's upcoming festive and wedding season, says Kaushlendra Sinha, CEO of IAGES. According to Sinha, tier-2 and tier-3 cities are emerging as important growth drivers for jewellery sales.
Sinha notes that organised retailers are expanding into smaller markets, improving consumer confidence and driving better traction.
The trend is expected to become more visible towards the end of the year as the marriage season gathers pace. In fact, Sinha says that jewellery demand is no longer concentrated in India's major cities, with smaller markets becoming increasingly important to the organised jewellery trade.
Digital gold is also seeing continued consumer interest, despite recent adverse comments from regulators and the government. IAGES has started accrediting digital gold players, focusing on ensuring sellers maintain adequate stocks and inventory.