Dubai: Indian jewellery chains – those that are yet to be represented in the UAE and the Gulf – could now make a beeline here to open up another sales front. The pressure on them to do so has mounted after Indian authorities rolled out a series of steps to dampen retail sales of gold and jewellery to try and get a grip on an unravelling economy.
There is a rationale for doing so — as long as the controls are in place the price of buying jewellery here and what it would be in India can turn quite substantial, if it has not already. So, some of that buying activity could end up getting routed to the UAE and other Gulf markets at some point in time. When that happens, those of India’s retailers not present here would not want to miss out even if it comes with all the additional costs of setting up operations and finding suitable locations.
Does the prospect of increased competition faze local firms? “This depends on the business model of the respective chains — we have some systems and procedures in place which is not necessarily opportunistic in nature,” said Joy Alukkas of Joyalukkas Group. “I personally don’t believe in over speculating since prices — as well as rules and regulations — in various markets can change at any time.”
But local jewellers are already gearing up to prospect the opportunities the India situation has thrown up. “There will be many offers and incentive programmes — such as buyback programmes in India of jewellery bought here — targetted at Indian expats in the coming weeks,” said Shamlal Ahmad of Malabar Gold and Diamond. “The current environment is unique because demand in one market is being artificially tamped down — that demand could resurface elsewhere in several forms.
“Dubai’s gold trade has a historic opportunity to leverage the current situation in India.”
