Coronavirus Lockdown: Gold sales move online this Akshaya Tritiya

It is going to be e-Akshaya Tritiya this year. With nationwide lockdown forcing jewellers to close their shops, the gold purchase is going online for this year’s auspicious day of Askhaya Tritiya on April 26.

India’s largest branded jewellery maker -- Tanishq from the Tata Group, and Kalyan Jewellers have launched some innovative schemes to attract their traditional buyers. Tanishq is offering discounts ranging up to 25% on gold and diamond jewellery making charges.

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The company is also offering a gold rate protection scheme wherein customers can purchase Gold Coins at the prevailing gold rate and secure themselves the benefit of current gold rates on future jewellery purchase.

Tanishq is keeping online bookings open between April 20 and 28 on its ecommerce platform. “Akshaya Tritiya is a special occasion to buy gold. Nearly 54% of our regular Akshaya Tritiya buyers expressed interest to pursue the tradition of buying gold on this day. So, we decided to make it a e-Akshaya Tritiya this year,” said Ajoy Chawla, CEO, Jewellery Division at Titan Company.

The Tata company is also reaching out to its selected ‘Encircle’ customers from a database of 11 million, asking them to make use of the online sales window this festive season. The jewellery purchased online on its website will be delivered to customers once the lockdown is lifted on May 3, Chawla told DH.

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He said the company is also working on a video calling feature wherein it will showcase jewellery to its customers through a video. This feature is still in the works. It is also enabling its customers to exchange the jewellery purchased online at their showrooms anytime till June 30. Currently, Tanishq gets a fraction of its business from online transactions with an average ticket size of Rs 20,000 per transaction.

It is also planning to introduce appointment-based selling of jewellery once the lockdown is lifted at some of its showrooms.

South India-based branded jewellery maker Kalyan Jewellers has seen a huge spike in online footfalls on its ecommerce website. It has launched a Gold Ownership Certificate that can be purchased online.

The Certificate indicates that the person now owns gold of a certain grammage/value, thus fulfilling the tradition of Akshaya Tritiya – which is about buying gold on that auspicious day. Once the lockdown is lifted, the customer can redeem their Gold Ownership Certificate against physical gold, in the form of jewellery or coins, on or before December 31, 2020.

“As the rate protection offer is also included in this certificate, customers get the additional benefit of protection against price fluctuations. If on the day of redemption, the price of gold is lower, then that rate will apply,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.

Over the last few days, Kalyan Jewellers has seen a three-fold surge in the number of visitors on its website. The company clocked Rs 100 crore worth of online business last year with an average ticket size of Rs 30,000 per transaction.

“Akshay Tritiya 2020 looks subdued due to the continued lockdown on the back of the coronavirus crisis. The inventory on hand for the jewellers as well as the gold jewellery held by households in India have seen significant appreciation in value. Prices in April last year around Rs 3,200/3,300 a gram and currently around Rs 4600 levels have resulted in an increase in the wealth by 43% year on year for those who have invested, purchased or diversified in gold,” said Shekhar Bhandari, President - Global Transaction Banking, Kotak Mahindra Bank.