As the trend of online jewelry shopping continues to rise in the United Arab Emirates (UAE), more and more consumers are opting to purchase their gold and diamond jewelry through the internet.
While traditional methods of touch and feel are still preferred among UAE residents, the convenience and ease of buying jewelry online are becoming increasingly appealing.
Steady Increase in Customers Opting To Buy Gold Online
The trend of purchasing jewelry online is on the rise among consumers in the United Arab Emirates (UAE), according to local retailers.
Most online purchases are smaller pieces of jewelry with a lower ticket price, with a significant portion of orders placed by millennials during wedding seasons and festivals such as Valentine’s Day.
#UAE #gold #sales: Shoppers make some quick purchases as #Dubai Rate slips below Dh203 a gram. Gold prices are still dropping – will December 2 prove another big day for sales?#BuyGoldBlackAmerica#Inflation #Fed #Tapering #InterestRates #Omicronhttps://t.co/9QbVK1LQ32 pic.twitter.com/XLoQUliqP0
— ⭐️Charles Muhammad⭐️ (@CharlesMuhammad) December 2, 2021
Per International Operations Managing Director, John Paul Alukkas, there has been a consistent trend of customers purchasing gold jewelry online, particularly as presents for their loved ones.
The convenience of shopping from home and being able to have the jewelry delivered to their loved ones, regardless of location, is a major factor in this trend.
According to the data from the World Gold Council, jewelry demand in the UAE, particularly in Dubai, increased by over 30% in Q3, reaching 10.7 tonnes compared to 8.2 tonnes in the same period the previous year.
The rise in sales is due to the high resident spending and an influx of foreign tourists, particularly from the Indian subcontinent, the Middle East, Europe, and the US.
According to Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, young millennial consumers have shown renewed interest in buying jewelry, resulting in an increase in the use of digital channels for lightweight jewelry purchases.
The e-commerce division at Kalyan Jewellers has consistently seen an increase in revenues.
Rise in Online Buying in Gold Jewelry Sector
Shamlal Ahamed, the Malabar Gold and Diamonds International Operations Managing Director, likewise noted the rise in e-commerce and online buying in the gold jewelry sector.
The company operates an online store to reach customers from all walks of life, allowing them to shop from a wide range of collections from the comfort of their homes.
In 2022, resident & tourist spending on #GOLD jewellery sales in #Dubai will have surpassed pre-#pandemic levels.
According to Dubai jewellers, 2022 is ending on a high note, thanks to double-digit growth in the 3rd quarter, and this momentum is expected to continue in 2023.#UAE
— Rashid (@Rashid_RRolls) December 26, 2022
Even though the percentage increase in online jewelry sales is high, the average value of jewelry bought online tends to be lower compared to offline retail sales. Experts anticipate that this trend will continue.
Chirag Vora, Director at Bafleh Jewellers, stated while they are relatively new to the online arena, they have seen many inquiries and two-way online communication that eventually convert into sales at physical stores.
In addition to this, customers also want to check online before visiting showrooms to make purchases.
Anil Dhanak, Managing Director of Kanz, also added that customers often prefer to view jewelry collections online before visiting stores for the final buying decision.
While the touch and feel of jewelry are still important for clients, there has been a growing interest in online purchasing for items on price points, due to the convenience of shopping from home.