Coimbatore Jewellers Script Gold Rush

Gold seemed to have lost its glitter for some time in Coimbatore, one of the country's major jewellery centres. Widespread recession in the textile and engineering industries had drastically hit gold consumption here.

However, an innovative marketing scheme initiated by the World Gold Council (WGC) to hardsell gold has brought the proverbial glitter back to the yellow metal.

Urged by the WGC, about 70 competing jewellery retailers in Coimbatore and Tirupur have joined hands to woo consumers.

They offered a kilogram of solid gold for free every week and the demand for the royal metal saw an upsurge.

"Demand had dropped by about 30 to 35 per cent because of the recession, bomb blasts and political turmoil. Many artisans, too, were forced to leave the city," K Shivram, WGC's manager (south), said.

Textile, one of the main industries in Coimbatore, is now in a deep recession and this has affected the income of thousands of workers and businessmen. This had severely crippled gold consumption.

"WGC's main mandate is to promote consumption of gold. We had to do something to bail out artisans in Coimbatore. When we proposed the Mega Gold Mela, jewellery retailers responded enthusiastically," Shivram says.

When the mela, styled on the Dubai shopping festival, began on September 20, few would have predicted its success.

The WGC and 70 retailers came together to kick-off a joint marketing and advertising campaign.

For one month, anyone who buys a specified minimum quantity of gold from any of these outlets is eligible to participate in a lucky draw to held every week. The prize was one kilogram of gold for the winner of the draw. More gold was thrown in for `consolation' prize winners, too.

"Demand has now risen to earlier levels," says Shivram. The success of this experiment has prompted WGC to work on promoting similar schemes in Delhi in December this year and in Mumbai in January, 1999.

Moreover, the gold trade in Coimbatore has seen the benefits of co-operation. "The joint marketing programme has brought 70 retailers closer," says Shivram.

This experiment has also attracted international attention. Pamp Suisse, an international bullion house, has donated two kilograms of gold to the cause.

Rolf Schneebeli, the chief executive of the WGC for Middle East and India, is also scheduled to make an appearance in Coimbatore on October 20, when the Mega Gold Mela comes to an end.