Retail makes no room for small jewellers

Neighbourhood jewellers are fighting for survival as jewellery trade in the city gets organised. For convenient shopping, people are shifting their loyalty from traditional jewellers to branded showrooms. A leading jeweller and Jaipur Chamber of Commerce & Industry secretary Ajay Kala told ET that there has been a major shift in buying tendency of customers. “Customers now want value for money as gold rates are heading north. They look for guaranteed gold items rather than fighting the fear of adulterated stuff from small-time jewellers.” Showrooms also have the advantage of offering buyback schemes and guarantying the purity of the yellow metal. Out of around 2,500 ‘proper shops’ in the city, 100-150 small-time shops have been the casualty in this highly volatile market. For instance, Ram Babu Soni, a jeweller of Malviya Nagar, had to change his trade to make both ends meet. “One-and-a-half years back, when gold prices swelled from Rs 6,500 per 10 gm to Rs 10,000 per 10 gm, I had to close shop, which was doing well till then. With no capacity to hold gold for long and business drying up, I had no option left but to start a grocery shop.” Lack of funds has forced many jewellers like him to down their shutters. Gems and jewellery expert Ashwini Durlabhji said that traditional jewellers are now concentrating more on manufacturing and supply than retailing. “Lack of funds, rising gold prices and intense competition has marked the end of jewellery kiosks, which were once the feature of jewellery trade in Jaipur. Big-time jewellers are now outsourcing their gold jewellery demands from these lesser-known goldsmiths. “Jewellers who were once retailers are now engaged in fulfilling the market demands of branded jewellery showrooms. They are being paid for their labour and dexterity while metal is being provided by the showroom owners,” said Durlabhji. Besides, trendy and light weight jewellery has made a dent in the revenue of countryside jewellers. “Gold was just a safe investment for small-town people. They used to buy heavy jewellery during the marriage season. But now they also look for genuine, trendy and designer jewellery. And for that, they are heading for branded showrooms in Jaipur leaving their neighbourhood shops stranded. As a result, many shops are on the verge of closure while others are just meeting their expenses, said Ram Lal Sarraf, a jeweller in a small town Neem Ka Thana, 175 km from here