Jewelry stores run out of stock in Bangalore

Small and medium-sized jewelers are weighed down by the combined effect of changing hallmarks and weak sales.

The displays of a one-chain gold jewelry store on SM Road are empty with only a handful of cases for customers. “There is no stock. That’s all we have. New stock is not expected until after 20 days, ”said the store’s sole employee. He is not the only one facing this problem. The windows of many of the city’s jewelry stores are bare, with store owners and managers blaming it on the recent foreclosure.

Praveen Kumar, who runs a jewelry store in Gokula in Yeshwanthpur, said The hindu that most of the jewelry made arrives in the city of neighboring Maharashtra. “With the lockdown in this state, we didn’t have any stock,” he said. According to TA Madhukiran, partner of a gold jewelry store in Gandhinagar, the past two months have been difficult for small and medium-sized jewelers.

On the supply side, the city’s jewelry makers have also been hit by a labor shortage, although foreclosure restrictions in the state were relaxed earlier this month. In Benglauru, for example, many jewelry manufacturers work with less than 50% of their workforce. “After the lockdown, many workers had returned to their hometowns and they have not yet returned,” Madhukiran added.

Following the outbreak of the COVID-19 pandemic last year, jewelry stores were closed for more than three months. This year again, the stores remained closed for many months. “We lost a lot of business because we were closed during big sales such as Ugadi and Akshaya Tritiya, and much of the wedding season,” he said.

The past two years have been difficult times for the jewelry industry. S. Venkatesh Babu, outgoing president of the Bengaluru Jewelers Association, said the supply chain has been affected and business has declined significantly. “Some small businesses have yet to reopen and few others are not in the mood to improve inventory. Some are waiting for the end of “Ashada”, which is considered a “bad omen” month, ”he said.

The lack of clarity in the revised rules for hallmarking jewelry is also affecting the industry. The change in these regulations was also delaying the processing of jewelry, said TA Sharavana, MLC and president of the Karnataka Jewelers’ Association. Mr Babu added that the new rules benefited large jewelry companies, which dominated the market.

“Due to the combined effect of changing regulations on punching, locking and months of downtime, small and medium-sized jewelers are not even able to achieve 30% of sales made two years ago. years, “Madhukiran said.

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