An increasing number of jewellers are offering incentives to customers for purchases through cashless means such as debit and credit cards, demand drafts and cheques, and payment modes like RTGS and NEFT, as they gradually adapt to dwindling cash purchases in the wake of demonetisation last month.
While jewellers such as Malabar Gold & Diamond, Joy Alukkas and Orra have started offering sops for cashless transactions, constant vigil on gold trade and frequent income-tax raids on jewellers are forcing others as well to embrace digital transactions.
Jewellers said they also want to benefit from the 13% drop in gold price to about Rs 26,990 per 10 gm since November 8, when the government announced withdrawal of Rs 500 and Rs 1,000 notes as legal tender. Joyalukkas is offering a 3% discount on gold purchase through debit and credit cards.
Asher O, managing director (India operations) at Malabar Gold & Diamonds said the company is offering a discount of 2%."We expect sales to improve now.”
According to jewellers, sales are down 30-40% now, a marked improvement from the 80% plunge seen soon after demonetisation.
Vijay Jain, CEO of Orra, which is engaged mostly in diamond jewellery, said the company is looking at giving discounts and cashbacks for purchases through credit cards. "We are currently in discussion with top three credit card companies for tie-ups and promotions. We are also getting good response for our engagement category of jewellery ," said Jain. "We are also getting good response for our engagement category of jewellery ," said Jain. "While there is a concern with both dates and spends when it comes to weddings this season, engagements are witnessing robust growth."
