Indian jewellery retailers suffer severe hit with sales in Gulf markets due to West Asia conflict

ndian gold and jewellery retailers are taking a sharp hit from the escalating conflict in West Asia, with sales in key Gulf markets falling by as much as 70% in March compared with a year earlier. Chains such as Malabar Gold & Diamonds, Kalyan Jewellers, Joyalukkas and Titan Company’s Tanishq, which together command a significant presence in the region, are witnessing weak footfall and cautious spending, even as most stores remain open in markets such as the UAE.

It is said that while many Damas and Tanishq UAE stores are open on most days, consumer sentiment and sales were adversely impacted during March, although Eid sales in less affected markets such as Saudi Arabia and the UAE were reasonably strong. While retail expansion plans are currently impacted, our transformation journey continues without any let-up.

Roughly estimated to be a $2 billion jewellery market, Indian players account for about half of total sales. While festive demand around Eid provided some support in relatively less affected pockets such as Saudi Arabia, companies say expansion plans in the Gulf have been put on hold indefinitely amid prolonged uncertainty.