Jewellery shops vie to woo customers in Dubai

January 28, 2009

Commodity Online
DUBAI: As the recession-hit world markets are busy sending SOS to respective governments to bail them out from the Titanic-like collision it had with subprime crisis, jewellery industry is also trying hard to keep the business afloat.

As part of the strategy, big jewellery firms in the UAE and other Gulf nations have initiated major customer-friendly steps to boost the sales.

In fact, jewellery sector is very keen to get rid of the recession effects as the luxury materials are the first things to fall off customers’ list when there is a financial crisis.

According o reports, demand for gold in the UAE has dropped by 14 per cent. However, in other markets like US witnessed huge falls.

In India also, Surat diamond and jewellery traders said they lost huge amount business during the peak season of November-December 2008 following the economic slowdown in the US.

According to American jewellery retailer and manufacturer Tiffany & Co revealed that trade fell sharply during the crucial November-December holiday period. Worldwide sales declined by 21 per cent to $687.4 million compared with $867.3 million in the same period in 2007.

However, UAE traders are heavily banking on tourists from India, Russia and Southeast Asia to lift their sales. The population of UAE is amongst the most affluent in the world, with almost 40 per cent having disposable incomes in excess of $75,000 per annum. The overall incomes and spending patterns make it an attractive market for luxury goods.

According to experts, companies were working harder than ever to find new ways to boost sales. In a new development, every jewellery firm now wants to get closer to the customers now and the shops offer them discounts and more choices.

According to Tiffany, the drop in sales was felt most in the US stores and to a lesser degree in the Asia-Pacific region and Europe.

It seems enticing customers is a good way to go during the time of recession. The World Gold Council is linking up with retailer Damas to give away 20 kg of gold in a retail promotion during the Dubai Shopping Festival, which ends on February 15. Pure Gold Jewellers, meanwhile, is offering discounts of up to 50 per cent on its diamond collection.

Reports said that the Dubai Shopping Festival has also witnessed a fall in footfalls due to the recession. So, companies will have to take drastic steps to woo back the customers. So, they can expect more prices cuts and better quality soon. Finally, customer is the KING.

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