Festivals and auspicious occasions are intricately woven into the tapestry of Indian culture and the Indian jewellery trade. Every second month comes up a festival or auspicious occasion and with it comes a downpour of discounts and deals. The Indian customer is ready to lap up the discount offers like milk and honey! So, like other retail businesses, the jewellery retail industry too, depends on seasonal offers and discounts to increase the sales.

Why do seasonal discounts and offers matter?

● The Indian calendar is dotted with festivals and occasions every month. Such festivities are normally associated with jewellery purchase to augur good fortune to the family. To attract customers, offering special festival discounts have become the norm.

● During festivals like Diwali or Pongal, the government employees get their bonus which is a bulk amount used often for investment in gold. To lure the customers to invest heavily in gold purchase, higher discounts are offered.

● Certain auspicious days like Dhanteras or Akshaya Tritiya are specifically linked with gold purchase as families buy gold on these days and worship God with gold coins.

● Occasions like Valentine’s Day, Father’s Day and Mother’s Day are being highlighted recently to push sales further with special offers.

● Certain festivals like Varalakshmi Pooja, Karva Chauth or Vijayadashami have become occasions for women to buy new jewellery. With gold being such a high-priced commodity, frequent purchases are not easy for an average customer. Thus, the only option for a retailer is to offer such discounts and offers during festivals to boost sales.

How to boost jewellery sales using seasonal discounts and offers

• Read your customers Assess the footfall of customers during festive seasons. This

may vary from one shop to another shop in another location depending onthe type of customers you cater to- For example. middleclass customers find it convenient to purchase gold during Diwali, New Year or Akshaya Tritiya. For theaffluent, every day is an occasion.

● The locality your store is in- If your store is located in a North Indian niche, you can expect customers during Dhanteras. In a South Indian locality, Akshaya Tritiya, Onam, Uganda, Pongal, Diwali or Dussehra are the best for buying gold. In a Muslim dominated area, sales are bound to shoot only during weddings. Christians normally purchase gold for their engagements and weddings or during Christmas. Make a list of the days or occasions where you had maximum sales. Some festivals may attract crowds to your store but how many actually bought and why? Analyse.

How seasonal discounts are decisive factors in increasing Jewellery sales

1. Offer a seasonal discount only if it is worth it.

During a festival, every jeweller in town is offering a discount and the competition is intense. Do not just join the competition blindly and offer heavy discounts. Instead, evaluate whether giving a discount of this size has worked for you earlier. If not, you can test-market by offering this discount moderately for a few days and judge the outcome. Offer a seasonal discount only if you think it is worth the trouble. or if you are desperate to liquidate stock.

2. Be different in your discounts

10% off on making charges, zero wastage- all this has become common phrases during festive time. Try something different.

● Tanishq offered a 20% discount on making charges with an additional 5% with State Bank debit and credit cards

● GRT offered silver items free for the weight of gold etc.

● PC Jewellers has cleverly coined its discount deal as “20% off on diamond jewellery” and “20% off on making charges of gold jewellery”. Here the 20% looms large and draws the customer to the store.

● Durga Jewellers of Bangalore goes a step further with its ‘Buy 1, get 2 ” offer on Solitaire jewellery.

3. Make an impact with the discount offer

Evolve print or social media campaigns based on this discountoffer and spread the word around. Intimate your customers of this offer by email, SMS, voice call, WhatsApp or FB messages. Make sure that your discounts make an impact on the customer and draw her to your store. Kamdhenu Jewellers of Chennai has marketed this ad across Facebook and received good response.

4. Special discounts as a mark of loyalty or regular purchase.

Discount depends on your discretion. Turn it into a favourable asset. Yes, it is possible if you offer discounts to

● Loyal customers who have been purchasing jewellery from you for ages, from generation to generation.

● Customers who have brought in many referrals through friends and relatives.

● Frequent shoppers who make small but regular purchases. This not only enhances your customer loyalty but also assures of more purchases in the future years.

The How, When and Why of discounts

It is not just the discount that matters. It is the How, When and Why that matter.

1. How– How do you present your discount? A 20% off on diamond jewellery sounds lame but a Celerio car or an LCD TV sounds huge. The price of both may be equal but, to the customer, yes, the physical representation as a car has great bearing like in this ad.

2. When -When to offer the discount? Offer discounts when your competitors are not even close. Make a difference in the timing of the discount to render it exclusive.

3. Why –Why are you offering the discount? Convey the reason for the discount to the customer- as a

● Festive gift

● Profit-sharing measure

● Mark of the customer’s loyalty.

This will increase the respect and trust among your regular customers. Dishing out discounts, anyone can do. But offering well thought out discounts is the key to successful jewellery retailing.