India, known for its vibrant festivals and grand weddings, holds gold as a symbol of auspiciousness, deeply ingrained in its culture. As the festive season nears, the nation embraces the tradition of buying gold, even amidst rising prices, making this period one of the busiest for retailers. IMAGES Business of Fashion spoke with Aditya Modak, CFO & COO of PN Gadgil & Sons, one of India’s leading jewellery retailers, to explore the key trends shaping the jewellery industry for the 2024 festive season.
How Festivals Affect Gold Buying Patterns
“In India, gold holds deep cultural and religious significance, viewed not merely as an ornament but as an auspicious symbol of wealth and good fortune. During these festive periods, buying gold is viewed as aligning with positive energy, and families often make major purchases, such as gold jewellery or coins, to ensure blessings and prosperity for the future,” explains Modak on how cultural and religious beliefs become catalysts to the growth in demand of gold during the festival season.
Key Trends in Gold Jewellery 2024
“As festivals like Diwali, Karwa Chauth and Akshaya Tritiya approach, the demand for traditional wedding jewellery is increasing. These pieces include Mangal Sutras, necklaces, and bangles. Festivals often drive customers toward these culturally significant pieces,” says Modak.
This year, he says he has also noticed an affinity towards more affordable and versatile jewellery options. Instead of heavy gold pieces, younger consumers are opting for diamond jewellery and lighter gold ornaments suitable for everyday wear. The demand for customised jewellery is also rising, with many customers seeking personalised or unique designs.
“While investment-focused pieces still see demand, they tend to be smaller and more practical, as buyers are more cautious about making large purchases due to the rising gold prices,” he adds.
“While older customers lean towards more conventional pieces, younger customers show a blend of preferences including traditional and modern designs. There is a noticeable shift towards lighter, more affordable and versatile pieces. Younger buyers on the other hand prefer modern designs that are personalised or easier to wear regularly. “While they (younger demographic) still value the investment aspect of gold, these purchases tend to be smaller and more practical,” explains Modak.
Impact of Rising Prices on Jewellery Purchasing
Customer demand for studded and plain gold jewellery saw a significant jump following the budget announcement in July this year due to the reduction in import duty on gold. However, while the initial price drop led to a temporary spike in purchases, international gold prices have since dropped, nullifying the impact of the duty cuts.
“Regardless, the cultural significance of gold drives festive buying, and consumers opt for more lightweight, affordable options like 14-carat or 18-carat gold, as well as silver jewellery, as the budget-friendly choice,” says Modak.
Additionally, he also comments that the demand for gold will continue to remain strong amid the continuous rise in gold prices. “Many consumers continue to buy gold despite rising prices, driven by the expectation that prices may climb even further. This prompts a ‘buy-now’ approach to secure gold before any future increase. Hence, the demand during the festive season will remain buoyant, with changing preferences shaping purchase behaviour,” he explains.
While higher prices might deter some customers from investing in heavy, traditional pieces, Modak emphasises that the focus might now shift towards lighter, more affordable options, like 14 or 18-carat pieces. Silver too, according to him, is emerging as a popular, budget-friendly alternative.
Silver Vs. Gold: Who Wins the Popularity Race Among the Younger Demographic?
Recently, there has been a growing interest among younger consumers in silver jewellery, owing to its budget-friendly nature and versatility. “How does this shift influence the demand for gold jewellery?” we ask Modak. He explains, “Silver allows younger customers to experiment with different styles without breaking the bank—something that’s especially appealing when gold prices are high.”
However, according to him, gold still holds its own for more significant, investment-focused purchases. People buy gold believing its value will continue to rise. “So, while silver’s popularity is on the rise, it complements the demand for gold rather than replacing it, especially regarding culturally significant and long-term investments,” he remarks.
PN Gadgil & Son’s Festive Collection 2024
PNGS meticulously plans for the festive season from the start of the year. The brand proactively builds its collections and inventory early to ensure it is well-prepared for the busy season. Making efficient use of the slow seasons, it strategically plans the photo shoot for the collections during the monsoon.
As the festive season approaches, PNGS focuses on comprehensive branding, advertising, video promotions, and social media. “This year is no different, and I can confidently say we’re festival-ready! With all these efforts, we aim to attract consumers with a wide range of options that suit different budgets, ensuring they find something they love despite the price challenges,” says Modak.
This year, PNGS has introduced a collection of statement gold jewellery that offers a heavy appearance while remaining lightweight, along with a diamond range featuring stones like emeralds and rubies. These luxury pieces are crafted in limited quantities, allowing customers to make distinctive, unique choices.
Brand Strategies
This year, PN Gadgil & Sons is focusing on digital marketing, outdoor advertising, and partnerships with popular shows like Sukhan Big Boss Marathi and Bha Di Pa. In addition to these efforts, the brand is introducing various promotions, including flash sales and special discounts for customers shopping in-store. It also offers unique pieces that are not available online, ensuring that customers can discover exclusive items at their retail locations.
Starting July, PNGS has been running various engaging campaigns like Mangalsutra Mahotsav, a 50% discount on gold-making charges, new collection launches, etc.
“We strive to keep our customers excited and engaged by introducing something new every 15 days, ensuring they have a fresh experience every time they visit us online. These campaigns will be particularly intense during the festive seasons, like October and November, to keep our customers excited and involved,” Modak concludes.
