UAE GOLD SECTOR RECORDS SUBSTANTIAL GROWTH PERCENT DURING DSF 2015

Feb 1 • Highlights, News & Features • 820 Views • Comments Off on UAE GOLD SECTOR RECORDS SUBSTANTIAL GROWTH PERCENT DURING DSF 2015

After an overwhelming response received by the shoppers this DSF, Dubai Gold and Jewellery Group (DGJG) reports a 25-30% increase in gold sales within UAE. Backed with the grand promotions planned for the 20th anniversary, the group saw tremendous increase in footfall within all jewellery retail partners. From the Guinness World Record holding, Dubai Celebration chain to prizes worth 100kgs of gold and 40 ct diamonds, shoppers not only participated in creating history, but also got to fulfil their dreams by winning daily and weekly raffle prizes.

According to industry reports, DSF is one of the major international events that people from all over the world look forward to; and in return adds substantial value to all segments including retail, hospitality and aviation sectors. The non-oil economy of Dubai owes a great deal to inbound tourists during the festive seasons and this is why jewellery retailers assume an additional month’s sale during this period. This year, reports compiled by the Dubai Gold and Jewellery Group suggest that beginning of 2015 saw a better performance rate than compared to that of 2014.

Mr. Tawhid Abdullah Abdullah, Chairman of Dubai Gold & Jewellery Group, said; “Being a representative of this Industry, it gives me immense pleasure to announce such numbers as it represents our efforts and planning to promote the sector and work towards the vision of Dubai as city of gold and jewellery destination of the world. The price of gold is one of the most prominent factors that determine the movement of the industry along with the enormity of the prizes offered and reach during any campaign among the residents and tourists. These gold price fluctuations depends on various factors such as crude oil prices, war conditions, and the value of various currencies, as Jewellery demand largely depends on the pricing of gold as commodity. Also this year, larger chunk of sales was by inbound tourists, therefore, tourist flow has maximum contribution to the success of the campaign. However, the jewellery sector expects reasonable growth overall this year.”

He further added, “This DSF we not only launched the biggest gold and diamond promotion but we also set another world record to mark the 20 years of collaboration with DFRE. This campaign was a true testimony of our commitment to the people of Dubai and the rulers, and will also stand for the efforts to bring out ground breaking initiatives that are synonyms to this futuristic city.”

Due to comfortable pricing of gold in 2014, demand for jewellery in Dubai has been steadily increasing. This year, the retail sector expects substantial growth as more and more household investors turn to gold, particularly jewellery as an investment. Additionally, the tax structure for gold in other parts of the world further encouraged consumers to travel and purchase gold jewellery in Dubai. Other aspects like, the purity and competitive pricing of gold in this region as compared to various other markets, is one of the key drivers of aggressive demand for gold jewellery, especially during the DSF. Also being home to the largest Indian expat population, plays a significant role in boosting gold jewellery sales on a larger scale especially during festive seasons like Dubai Shopping Festival and Diwali.

Mr. Abdul Salam KP, Group Executive Director of Malabar Gold & Diamonds, shared; “There was a definite boost in sales in 2014 compared to 2013 and we are very happy with the sales growth that is churning this year. Taking advantage of the trend in the variations in the gold rate and keeping in mind the huge offers, there is a huge increase in customer footfall in our stores across Dubai this year. The DSF promotion campaigns have helped to enhance the sales to a certain extent and compared to the previous year, the growth of gold and diamonds sales have gone up considerably. Also diamond jewellery is gaining popularity over gold as it goes with any costume and occasion. For people who prefer light and elegant jewellery, diamonds are always the best choice. However, we observe an increasing demand for solitaire jewellery these days.”

While the gold industry enjoys a favourable growth, the diamond wholesaling and retailing also saw an exponential demand, however, customers who prefer diamond jewellery over gold have only been increasing. In order to further support this demand, DGJG offered to double the chances of winning for those who bought diamond jewellery, pearls or watches. Offering this privilege exclusively to the customers who bought diamonds and pearls, the Group hopes to have promoted the sales for precious stones during DSF as well.

Commenting on the trends in the gold sector, Mr. Babu John, Chairman & Managing Director, Sky Jewellery stated his estimates, “2014 has been a great year for jewellery retailers as the gold price declined by 12% compared to 2013 and it definitely translated to higher sales volume. An extravagant marketing campaign and winning opportunities along with the Guinness World Record in hand, we expected a minimum of 50% increase in sales volume as compared to the previous DSF. Unfortunately, sudden increase in price has affected the overall momentum. Volatility in the price is going to be the major factor that determines the growth this year. Besides, the outlook on oil price and its overall impact on the region will leave insecurity to the general public in terms of their spending. However, as people who believe in the merit of gold would start spending more on gold as a safe investment option against all odds. These two contradictory conditions can impact the trade in either way.” – Babu John, Chairman & Managing Director, Sky Jewellery.

Catering to over 180 nationalities residing in Dubai with its jewellery import from over 30 countries, thus meeting the demand from the global tourists visiting Dubai. Gold jewellery gets sold in Dubai all the way from 18K, 21K, 22K up to 24 satisfying the tastes and preferences of every region in the world. Dubai’s retail jewellery sector largely depends on local consumers for their yearlong sales and tourists; especially during the Dubai Shopping Festival and summer promotion. Predominantly, Asians, Chinese and Arabs are the biggest spenders during DSF.

Due to the consumer requests and popular demand, Dubai Gold and Jewellery Group promotion has been extended until 5th February, where the mega raffle draws for 40 kilo gold and 8 carat diamonds will be hosted. An effort by the group to offer customers further chance to purchase and participate in the mega raffle draw.

About Dubai Gold & Jewellery Group

Formed with the support of the Dubai Department of Economic Development in 1996, The Dubai Gold & Jewellery Group (DGJG) is a non- profit trade group for the Dubai jewellery industry with around 600 members representing all sectors of the trade, including bullion, manufacturing, wholesale & retail. The Group has since then evolved into a prestigious trade body committed to developing and sustaining Dubai’s status as the ‘City of Gold’ and ‘The Jewellery Destination of the World’.

DGJG works closely with Dubai Municipality to ensure that Dubai maintains its standards of providing quality jewellery to its consumers. Internationally, the Group gives its members an opportunity to exhibit their products through the ‘Dubai Pavilion’ which is hosted in leading international jewellery exhibitions. It also organizes the City of Gold Conference which has brought international attention on Dubai’s positioning as the City of Gold. DGJG further represents the interests of the trade through liaising with government organizations. Its Board of Directors includes representations from Dubai Central Labs (Dubai Municipality), Dubai Events and Promotions Establishment which is part of the Department of Economic Development.

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