Gold buyers look for trendy styles

Gold and jewellery are an integral part of many traditions and gold's status as a safe haven during uncertain times still holds true.

Consumers looking to buy gold jewellery these days favour unique styles, observes Karim Merchant, group CEO and MD of Pure Gold Jewellers.
"No longer are consumers basing their decision of buying gold purely on their investment strategy, they are now looking to buy trendy designs," he told Khaleej Times. "There has always been and always will be demand for gold and gold jewellery despite price fluctuations. History shows this to be true, however customer tastes and preferences evolve with the latest trends in fashion. Gold and jewellery are an integral part of many traditions and gold's status as a safe haven during uncertain times still holds true."
Manish Dhamani, director of Dhamani Jewels, said the UAE market - which traditionally served more of Indian and GCC-style jewellery - has come on par with the global market. He revealed that the new millennial consumers, both residents and tourists who visit the UAE, have different preferences in jewellery designs than the previous generation. They tend to favour the latest in fashion trends, international connectivity and individually inspired designs.
Shamlal Ahamed, MD of international operations at Malabar Gold & Diamonds, told a similar tale, saying that the demand for lightweight jewellery in the past few quarters is increasing.
"This is true for traditional as well as for daily wear/office wear jewellery. The most sought-after jewellery at the moment are the ones crafted in 18K gold and offering a large variety of products which are unique and trendy," he said. "Consumers in the UAE are very astute and discerning. We have to consistently update our offering. We have also seen a consistent growth for diamond and precious gems jewellery."
"Consumers today look more for gift items, such as small jewellery pieces with diamonds, comprising rings, earrings and pendants," Dhamani said. "The sector to which Dhamani belongs to [fine diamond and gemstone jewellery] has grown in the past eight to 10 years, and is expected to accelerate further in the coming years."
Gold or diamonds?
Ahamed said gold prices have continued to fluctuate in the recent past, however there has been some sort of stability in the price range. "We prefer the prices to be at the current levels where it is affordable for consumers. Customers continue to buy their favorite jewellery - be it gold or diamonds. However, we do see some short-term resilience from gold jewellery customers when the prices increase. Festivities form a considerable volume in the market. We expect the year to be challenging, but as long as we are able to offer jewellery which entices jewellery lovers in the markets we operate in, it should be fine."
When it comes to precious gems, diamonds continue to be favourite for both residents and tourists in the UAE, said Dhamani. "The UAE jewellery market has been consistent; even after the ups and downs of 2008, the demand for jewellery, diamonds and gems has been growing and will continue to grow, as the UAE retains its title as the favoured jewellery destination in the region."
He added: "Since the year 2000, the UAE market has evolved to be one the most sophisticated jewellery markets in the region and around the world. Apart from weddings and festivals, the majority of demand for jewellery is tourist driven. With the UAE being one of the hot spots for tourists from mainland China, the Indian subcontinent and GCC residents, the trend continues to grow."
Dhamani revealed that diamonds continued to be a shopper favourite, with classical designs being the favoured choice. In addition, yellow sapphire gemstones, which are favoured by Indian buyers due to astrological purposes, are one of the most sought-out gemstones sold in the UAE. Other gemstones like rubies, sapphires and emeralds have also seen a growth in demand.
Ahamed added that there is also a demand for tanzanite from very discerning customers, but the volumes are still small.
Merchant said when it comes to diamond jewellery, classical styles are in vogue. "However, we are also seeing customers demand diamond jewellery with a 'bigger look'. Customers are also looking for more flexibility in price points. As an industry, we can draw on lessons from Hallmark cards, who very successfully capitalised on the smallest of occasions by customising their core product. By doing this, they reaped the commercial benefits, and at the same time they were able to connect with the consumer."
"I expect to see stability in our industry in 2017. Jewellers who are agile and willing to listen to their customers will prosper. No longer should any retailer buy to sell, we all must sell what customers want to buy," he added.
- rohma@khaleejtimes.com