Senco Gold sees gold price hikes cause weaker demand in March, April

Fine jewellery brand Senco Gold Limited has seen the recent increase in gold prices result in a weakening of consumer demand in India. In March and April this year, gold jewellery sales have declined by 15% to 20% in volume terms thus the industry is looking for ways to reverse this trend.  

“In the last 30 days, the gold price has jumped about 10%, and in the last six months, it has become costlier by 23% to 25%,” said Senco Gold’s managing director and CEO Suvenkar Sen, the Press Trust of India reported. “This sharp volatility has hit retail buying sentiment. Volumes have plummeted by 15% to 20% for the industry.”
 
Reasons for the recent increase in gold prices include geopolitical tensions which are showing no signs of abating. To combat sluggish consumer demand for gold jewellery, Senco Gold has launched a price guarantee scheme for six months which enables shoppers to book gold at the current price to remain immune from future price increases, the Economic Times reported. The business is also focusing on promoting. Diamond studded gold jewellery which, usually crafted from a lower gold purity of 14 carat, can give shoppers more for their money.
 
Senco Gold Limited expects to see diamonds make up a larger portion of its revenue in the coming two to three years. The business is also currently offering discounts on jewellery making charges to boost sales during this uncertain period.