Dubai:
There aren’t that many of Dubai’s gold and jewellery retailers at the city’s leading malls. The few names that do have outlets in these locations tend to use it more for their high-value diamond collections.
“You talk to the mall managements and the feedback one gets is they prefer the big international jewellery brands — and their high value sales transactions — to be represented rather than local names,” said Tawhid Abdullah, Chairman of Dubai Gold & Jewellery Group. “This is being quite unfair on local jewellers who are still willing to pay the high rentals a mall presence requires.
“It’s a misnomer to suggest that local gold retailers only prefer the high-street or souq locations. There’s a certain type of shopper who only buys at leading malls — why should local retailers be denied that clientele?”
Abdullah strongly refutes any suggestion that Dubai’s jewellers should consciously seek a higher quantum of higher value purchases at the expense of small-ticket buyers. “Those blue-collar shoppers represent the pillars of the gold retail trade ... nothing much can be gained by going for a higher spending clientele and ignoring this base. All through the cyclical swings in gold prices, the blue-collar shoppers still make the trip to an outlet to make those buys. That’s what drives the business.”
According to Abdullah, the biggest challenge to the trade’s future is to retain its lustre with a younger demographic of shoppers. “We are not talking about those in the mid to late 20s, but even those in the 15-25 year age group,” said Abdullah. “Buying jewellery had fallen off the must-have priorities for the young some time ago.
“But with a conscious effort, Dubai’s jewellery retailers are gradually winning over this set of consumers through targeted collections and at price ranges they can access. For the longer term prospects of the industry, the trade must try and create an year-round interest in buying jewellery, and not limited to three or four peak activity in a calendar year.
“To that end, the young are vital — their decisions will not be based on factors such as pricing or festival-related purchases, as is the case with their parents.”
