Page 29 - Bullion World Volume 03 Issue 5 may 2023

Bullion World | Volume 3 | Issue 5 | May 2023

Impact of Gold Prices on Consumer Buying Behavior
Despite the high gold prices, our survey found that 64% of Among the segments above, what was the preference?
jewellers reported that consumers did not consider price 100 responses
to be a significant factor while making their purchase. This
indicates that the emotional significance of buying gold More towards
on Akshaya Tritiya outweighs the financial aspect for most lightweight and
consumers. However, among the jewellers who reported lower carat
price sensitivity among consumers, 76% indicated that
consumers preferred lightweight jewellery over heavy More towards
ornaments. This trend is consistent with the preference for heavy ornaments
lower-cartage jewellery, indicating that consumers were
looking for affordable options without compromising style.

A shift in Consumer Preferences from Heavy Ornaments to Coins

Our survey findings suggest a shift
What was the nature of the purchase? in consumer preferences from heavy
100 responses
ornaments to gold coins. According
Purchase of new jewellery from to jewellers, while last year saw an
old gold increase in gold coin sales, this year,

Purchase of a brand new 40% of respondents indicated that
jewellery they sold gold coins, as compared
to only 30% who went for heavy
ornaments. This shift in consumer
Last season we saw an increase in gold coins sales: how was this season? preferences may be attributed to
100 responses affordability, as coins are available
in lower denominations, making
Much higher
them a popular replacement for
Slightly higher heavy ornaments. They see it as an
investment. But when compared to
Similar
last year, there was a decline in gold
Slightly lower coin sales. The higher prices may be
a reason.
Much lower

Average Ticket Size of Purchase and Grammage
The majority of purchases were made below What was the average ticket size of purchase?
5 grams. This accounted for almost half of all 100 responses
purchases, with 53% of respondents falling into
this category. The most popular range was 5 to 10 Less than 2 grams
grams, accounting for 22% of purchases. The third 2 to 5 grams
most popular range was 10 to 20 grams, with 16% of
purchases falling into this category. Only 8% opted 5 to 10 grams
for more than 20 grams. Consumers were most 10 to 20 grams
interested in purchasing smaller amounts of gold this
Akshay Tritiya, with the 2-to-5-gram range. More than 20 grams

In conclusion, our survey findings suggest a shift in consumer preferences towards lightweight and lower-
caratage jewellery this year, with rings and earrings being the most preferred segment. Despite the high gold prices,
consumers could still purchase gold on Akshaya Tritiya, with many opting for gold coins. The average ticket size of
purchase was between Rs. 20,000 to Rs. 40,000, with most consumers opting for jewellery weighing less than 10
grams. These insights can be valuable for jewellers in understanding consumer preferences and designing product
offerings to cater to the changing market trends.

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