More and more UAE residents are buying gold online; here’s why – News

Demand surge driven by upcoming festive and wedding seasons

While touch and feel is the top choice for UAE residents when buying gold and diamond jewelry, the trend of buying jewelry online is growing among consumers in the country.

The UAE-based retailer said the bulk of online purchases were small jewelry that wasn’t too expensive.

They also point out that a large number of online orders are mainly placed by millennials during the wedding season and holidays such as Valentine’s Day.

John Paul Alukkas, managing director of international business at the Joyalukkas Group, noted that there has been a steady increase in customers choosing to buy gold jewelery online.

“There are many customers who use online portals to buy gold, mainly as gifts for their loved ones. Buying gold jewelry online gives them the freedom to shop from the comfort of their home and enjoy the gift of gold no matter where their loved ones live. Delivery to your door. It’s really growing and we typically see a peak around Valentine’s Day and the festival and wedding season,” he said.

According to the latest data from the World Gold Council, the demand for gold jewelry in the United Arab Emirates, especially Dubai, known as the “Gold Capital”, has rebounded, with gold demand reaching 10.7 tons in the third quarter, compared with 8.2 tons in the same period last year, a year-on-year increase More than thirty percent. The increase in sales was attributed to high resident spending and an influx of foreign tourists, especially from the Indian subcontinent, the Middle East, Europe and the United States.

According to Ramesh Kalyanaraman, executive director of Kalyan Jewelers, the use of digital media to buy lightweight jewelry is on the rise as young consumers of the millennial generation renew their interest in buying jewelry. “Our e-commerce segment has been reporting revenue growth,” Kalyanaraman said.

Shamlal Ahamed, managing director of international operations at Malabar Gold and Diamonds, said e-commerce and online buying are also on the rise in the gold jewelery industry.

“In order to reach customers from all walks of life, we operate an online store so that customers can purchase our extensive product range from the comfort of their home. The percentage growth rate of jewelery purchased online is high, however, compared to offline retail sales The average value of jewelery purchased online is lower in comparison. We expect this trend to continue in the coming years,” Ahmad said.

Chirag Vora, director of Bafleh Jewelers, said they are relatively new to the online space, but have seen a lot of online inquiries and two-way communication, which eventually translates into sales in brick-and-mortar stores. “It’s a growing trend and it seems customers want to look online before heading to a showroom to buy,” he said.

Anil Dhanak, managing director of Kanz, added that customers prefer to view jewelry collections online before going to physical stores to make the final purchase decision.

“The tactile feel of jewelry is still very important to customers. But just because of the convenience of shopping from home, there is a growing interest in buying items online at lower prices,” Dhanak said.

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