Coronavirus: Impact of COVID-19 on Indian Jewelry Industry
1 month ago
With 21-days lockdown across the country due to the COVID-19 pandemic, there is a stir in every industry and market. The Gems and jewelry sector has also come to halt globally. The Jewelry industry started 2020 on a good note with high demand and production, but things have changed in the last four months due to the COVID-19 pandemic. The Indian jewelry market is also facing a decline in exports with hubs like Honk Kong and Dubai as all international trade and flights are being stopped for a while.
Looking at the present scenario, the market is very unstable for the jewelry retailers as gold rates have fallen by Rs 2,000 per gram in recent weeks. Jewelry production houses are closed because of lockdown. The Jewelry industry has lost over 75-80 percent of sales in the month of march as people are buying only essential commodities and holding cash with them as there is no transparency on how long this crisis will go on and if the condition goes worse, then they must have money to buy essential things in coming time.
Jewelry business was growing up as the wedding was on the floor, but weddings are postponed due to an outbreak of coronavirus that also affected the demand for gold. It is expected that consumer demand may remain moderate in the first half of the year, but retailers hope that as COVID-19 subsides wedding preparation gets resume again and people will buy gold too.
On the other hand, retailers are also utilizing quarantine days by doing development activities for employees and clients. For employees, they are running online training modules and as most clients are at home, jewelry brands are recalling the value of the brands by using social media marketing such as posting a picture of jewelry, send responsible social messages and solving client’s queries through WhatsApp and other instant messaging apps.