Jewellers attract customers through offers

PC Jeweller which runs a gold accumulation 'Value for Money' scheme with over 16% annual returns has started shipping jewellery free

Moving opposite to the government’s efforts to curb gold imports, jewellers have started incentivising consumers to ramp up ornament sales.

Taking the lead, Mumbai-based Tribhovandas Bhimji Zaveri (TBZ) has increased returns on its popular ‘Kalpvriksha’ gold accumulation plan to attract customers. In a revised offer, the company has offered returns equivalent to one equated monthly instalment (EMI) for every 10 EMIs paid by customers, offering thereby 12 per cent annual return.

Earlier, the company, under the same scheme, had offered returns equivalent to one EMI for every 12 EMIs paid by the customers, or 8.33 per cent return annually.

Available for new and existing investors, the scheme also invites old customers to get converted into the new scheme (10/1 versus 12/1) with high returns. For longer duration, however, the returns multiply in proportion to investment. Towards the end of the scheme, however, investors can buy ornaments or extend investment period further.

“The revised scheme is meant to lock in customers for future jewellery sales,” said a senior company official.

Similarly, Delhi-based PC Jeweller, which runs a gold accumulation ‘Value for Money’ scheme with 16 per cent annual return has started shipping jewellery free. This means, jewellery transportation for investor under this popular scheme will entail no transportation cost as has been the case in most of consumer-oriented online sales.

PC Jeweller offers returns equivalent to two EMIs for every 12 EMIs paid by the customer. Most importantly, while TBZ doesn’t allow purchase of jewellery during the period of the company’s contribution, PCJ debits its bit of share on the last day of the customers’ payment period.

“We got very good response from jewellers (big and small) on our call for halting bullion sales. But jewellers meant for business due to various costs, including establishment, employees and maintenance costs involved in it. Further, the industry has employed 10 million artisans that need to be paid. Hence, there is nothing wrong in jewellers attracting customers through various channels,” said Haresh Soni, chairman, All India Gems and Jewellery Trade Federation (GJF).

Meanwhile, the Reserve Bank of India (RBI), in order to curb burgeoning current account deficit (CAD), has ordered banks, nominated agencies and star trading houses to supply at least 20 per cent of gold imports to jewellery exporters and the remaining 80 per cent to local jewellers. Until last year, gold was the second largest foreign currency extinguisher, after crude oil, resulting into rising CAD. From the alarming level of 5.7 per cent a couple of months ago, CAD has slightly come down to 4.8 per cent now, but still continued remain high.

“Whatever jewellers are doing is purely meant for survival which has become difficult,” said Soni.