One way of tempting your customers to invest in precious jewellery is to make the cost manageable for them. Equated monthly instalments, or EMIs, are the most familiar way of enabling people to buy high-value consumer products. But not in the jewellery sector! It is practically unheard of for a jewellery store to offer EMI payment plans.
The Reserve Bank of India (RBI) certainly disapproves of the practice in the case of gold jewellery. It bars banks and NBFCs from offering loans for gold jewellery. To make matters worse, the policy guidelines do not allow the bank to even convert jewellery purchases made through credit cards into EMIs which is otherwise a common practice for other purchases. Any loan taken for purchasing jewellery is considered a personal loan on which you pay a higher rate of interest. No bank is allowed to offer a loan for the purchase of precious jewellery; the category has been delisted as per the RBI guidelines.
While banks are reluctant to finance consumer purchases of jewellery, non-banking financial companies (NBFCs) have stepped cautiously into the breach. For the past few years, NBFCs have been hand-holding jewellery retailers through the process. Their efforts have seen varying degrees of success.
Why are banks not open to exploring EMIs in this sector, when doing so would help the jewellery retail industry to expand its reach among consumers, and yield better profits? What has been the experience of jewellers who have offered or do offer EMIs to their customers? What are the ways around this logjam?
MAKING A START IN DIAMOND
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How Dubai Governs Its Gold
Dubaiâs high standard of gold quality and trade transparency combined with a jaw-dropping 98% compliance level, makes a perfect case study for how India needs to emulate the best practices that lures buyers from world over to the âCity of Goldâ
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The Indian gold jewellery sectorâs journey towards hallmarking has been long, slow and bumpy. Although voluntary hallmarking became available in April 2000, compromised gold was still widely sold in the market â a fact of which neither public nor government was ignorant. In June 2021, however, hallmarking became mandatory. Manufacturers, jewellers and consumers now must quickly come to grips with the new purity norms, which juxtapose a unique six-digit ID for each item with the utterly inadequate state of Indiaâs hallmarking infrastructure. The Retail Jeweller weighs the pros and cons of this sharp turn in the current, mid pandemic moment, when the gems and jewellery industry is more dependent than ever on gold sales.
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INTERVIEW - AJOY CHAWLA
As long ago as the early 2000âs, Tanishq, the preeminent brand in organised jewellery retail, made known that gold purity standard in India is questionable. It equated purity with trust, winning over millions of customers. Will mandatory hallmarking erode that lead? Not so, Ajoy Chawla, CEO, Jewellery Division, Titan Company Limited, tells Soma Bhatta - trust is an edifice of many levels, and purity is only the first one.
INTERVIEW - COLIN SHAH
As IIJS 2021 gears up to resuscitate the trade sentiment with its comeback physical show in Sept 2021, Colin Shah, Chairman, GJEPC speaks to Soma Bhatta about its role in steering domestic policies, plans to scale up India footprint, and why it needs to first build domestic demand in order to become a reliable
INTERVIEW - SHAILESH SANGANI
IIJS 2021 has surprised the trade for many reasons: the highest number of exhibitors ever in the history of the show; forty percent larger show space and shifting base to Bengaluru after a three-decade plus unbeaten stint in Mumbai. Shailesh Sangani, convener, national exhibitions, GJEPC, speaks to Soma Bhatta about the key highlights, trade expectations and why retailers should brave the odds to visit the upcoming show.
GOLD: A Modern Rendition
World Gold Councilâs âYou are Goldâ Campaign to excite millennials about gold purchase.
From the earth, for the earth: How natural diamond miners are rehabilitating nature
Diamond is in a very eventful phase in its global trade history. There are discoveries such as the 1,098 carat diamond by Debswana, a joint venture between De Beers and the Botswana government. Natural diamonds no longer adorn a woman with its beauty only, the members of Natural Diamond Council are giving their all to conserve the environment with better technology. And this is exactly where Natural Diamond Council is making a difference inimitable in scale and heart. Letâs understand better.
