Jewellery brands jazz up Diwali marketing despite flat ad spends, high gold rates

Gold rates in India have crossed Rs 8000 per gram ahead of Dhanteras, but there's palpable enthusiasm among shoppers about auspicious and festive purchases.

While the whopping 30% increase in gold's value underscores its investment appeal, the high prices are prompting consumers to make thoughtful, selective purchases. To attract these conscious buyers, jewellery brands are upping their game with strategic campaigns even as ad budgets stay the same as last year. 

According to the TAM AdEx: 2023 Cross Media Advertising Recap - Retail Sector report, Gold Jewellers were the leading advertisers on TV among retailers with a 54% share of ad volumes in 2023 over 2022. On Print, Radio and Digital, gold jewellers shimmered brightly at the top with a 29%, 31% and 20% share of ad volumes respectively. 

Jewellery brands from South India, including Lalitha Jewellery, Malabar Gold And Diamonds, Kalyan Jewellers, GRT Jewellers, Joyalukkas Jewellery, and Bhima Jewellers, were among the top 10 advertisers across mediums.

Tamil Nadu and Andhra Pradesh/Telangana are primarily driving sales in South India this year, followed by Karnataka, while the Kerala market is witnessing muted growth so far, said Sonoop Nair, Senior Vice President – Account Management, dentsu X India. He added, “Overall retail jewellery brands’ ad spends are more or less equal to last year with only marginal growth expected.” 

Nair further explained, “The primary focus is to increase footfall at retail stores.” To achieve this, brands take an offer-driven approach where discounts, exchange offers and EMI options are highlighted. “Online performance campaign budgets are going up significantly,” he said, adding that influencer and content investment is also being utilized significantly for brand and product discovery. 

Joyalukkas, a prominent gold jewellery from South India with a robust pan-India presence, is spending only a little more on advertising than last year. The brand is spending its ad budget strategically to meet the changing customer preferences, focusing on visibility and staying connected with the audiences. 

“This festive season, we are spreading our budgets, on print, digital, cinema, radio and in-store platforms to reach our prospective customers,” said Joy Alukkas, Chairman and Managing Director, Joyalukkas Group. 

Vummidi Bangaru, a popular jewellery brand from Chennai, has been regularly using social media for live influencer sessions to increase user reach and engagement. The brand is also using WhatsApp to facilitate easier, more effective customer interactions, while focussing on a balanced media mix that includes print, television, OOH at airports and metro premises, and digital channels like YouTube, Instagram and Facebook. Compared to last year, the brand’s budget for advertising is more this year and it’s spacing out the ad spends throughout the year.

For Lalithaa Jewellery, a key brand with a stronghold across South India, the focus continues to be on TV advertising, supplemented by OOH and Online. The brand is spending roughly the same on advertising as it did last year. 

The sentiment in South India is a blend of optimism and smart planning, prompting Joyalukkas to support the festive spirit with exclusive discounts and advance payment options. “Many customers at Joyalukkas are embracing practical, affordable options, whether through gold savings plans or by choosing lightweight, elegant designs that resonate with tradition while staying within budget,” said Alukkas. 

“In South India, traditional designs continue to be people’s favourite. The younger generation prefers lightweight jewellery. Diamond jewellery is also a favourite. The brand has also added innovative designs to its collection including changeable mugappu designs and reversible necklaces,” said a spokesperson for Lalithaa Jewellery. 

Amarendran Vummidi, Managing Partner, Vummidi Bangaru also echoed the need for design innovation to meet the demands of an evolving customer base. He said, “The demand for unique and attractive jewels has increased drastically. The preference is equally divided between traditional and trendy jewels.”

Tanishq has launched over 2000 new designs for the festive season, including several regional collections for select markets in South India. “We are delighted to see an encouraging response by customers so far this festive season, despite very high gold prices,” said Ajoy Chawla, CEO, Jewellery Division, Titan Company Ltd. He added that to enable customers to upgrade to these new designs while softening the impact on their wallets, a ‘Festival of Exchange’ has also been launched. 

Nair also chimed in about changing consumer preferences. “Versatile jewellery designs that can be styled with multiple festive looks are the key need,” he said, explaining that the rising gold prices are making consumers look for better price points for quality jewellery. He added that 24K gold is still high in demand, however per purchase volume has reduced due to high prices. 

Speaking about the consumer sentiment in South India, Sachin Jain, Regional CEO, India, World Gold Council said, “Retailers are witnessing increased footfall and pre-bookings for Diwali seem robust, indicating strong consumer confidence. The current festive season is expected to witness strong gold demand, reflecting gold's long-standing cultural and economic relevance in Southern India,” he added.

With Diwali right around the corner, the festive fervour is truly peaking. Jewellers are optimistic about high-ticket purchases, even with smaller per-cart volumes, and eager to serve their best designs and exclusive offers.