The trend of buying gold and diamond jewellery online is gaining momentum among UAE consumers, especially during festivals and wedding seasons.
However, the pattern is predominately noted regarding smaller pieces of jewellery, according to the UAE-based retailers.
Managing director for international operations at Joyalukkas Group, John Paul Alukkas, remarked a steady rise in customers who prefer to buy gold jewellery online.
“There are many customers who use the online portal to buy gold, primarily as a gift to their loved ones. Online gold jewellery buying gives them the freedom to shop in the comfort of their homes and get the jewellery delivered, wherever their loved ones live. This trend is really growing and we generally see a spike during Valentine’s as well as festive and wedding seasons,” he said.
According to World Gold Council’s research, gold jewellery demand picked up in the UAE, particularly in Dubai, known as the City of Gold, as the demand peaked at 10.7 tonnes in the third quarter of this year- an increase of more than 30 per cent from the same quarter last year. Some experts attribute this surge in sales to high resident spending and the deluge of foreign tourists (especially from the Indian Subcontinent, the Middle East, Europe and the US).
Ramesh Kalyanaraman, executive director of Kalyan Jewellers, the revived interest among young millennial consumers towards making jewellery purchases has accelerated the adoption of the digital medium to make lightweight jewellery purchases.
“Our e-commerce division has been consistently reporting an uptick in revenues,” said Mr Kalyanaraman.
Managing director for international operations of Malabar Gold & Diamonds, Shamlal Ahamed, said e-commerce is flourishing in the gold jewellery sector.
“In our efforts to reach customers from all walks of life, we operate an online store, so that customers can buy from our immense range of collections from the comfort of their homes. The percentage growth of jewellery purchased online is high, however, the average value of jewellery purchased online is lower compared to offline retail sales. We expect this trend to continue in the coming years,” said Mr Ahamed.
Director of Bafleh jewellers, Chirag Vora, said they are relatively new in the online arena, but have witnessed a slew of enquiries and two-way communication taking place online which eventually culminate into sales in brick-and-mortar stores.
“This trend is growing, and it seems customers want to check online first before they go to the showrooms to make purchases,” said Mr Vora.
Managing director of Kanz, Anil Dhanak, said while customers
habitually browse entire jewellery collections online, they still end up visiting stores for the final buying decision.
“The touch and feel of jewellery are still very important for clients. But there has been a growing interest for online purchasing for items on price points simply due to the convenience of shopping from home,” said Mr Dhanak.
