Diamonds Sparkle Forever

Published on 16/10/09

This Diwali, diamonds seem to have taken the sheen away from the overwhelming longing for gold. Soaring gold prices are seeing consumers prefer a variety of diamond-studded jewellery which seems to be hotter than gold. Among ‘white goods’, LCD and plasma televisions have turned out to be the top sellers, while contemporary wear seems to be a hit in the apparel category.
According to Sohil Kothari, managing director, Nirvana, diamond jewellery appears to be more attractive to customers this season. “Since the gold component is low in diamond jewellery and the cost is on diamond and labour, people are getting their value for money. Also, diamond prices have not been affected by the rising gold price. So the off-take is good this Diwali,” says Kothari.
Diamond rings, earrings and pendants — in that order — are high in demand. According to Mehul Choksi, chairman and MD of Gitanjali Group, the runaway increase in gold prices has affected gold ornament sales. “Compared to last year, the demand for diamond jewellery has increased,” Choksi said. Durable manufacturers are buoyant since their major brands seem to be flying off the shelves, with a catalytic push by their promos. LCDs, slim TVs, frost-free refrigerators and microwave ovens are the most vibrant segments among most products. “There is a very high conversion rate from colour to LCD TVs in the metros. Slim televisions are doing very well as we call it the 'poor man's LCD. Microwaves are selling high since people and corporates generally opt for microwave ovens as gifts during the festive season.