Buy-back on gemstones must be on par with gold; there is a fear of return on the investment, particularly more among high-end clients: Ankur Anand Director, Harsahaimal Shiamalal Jewellers, Lucknow

In 2019, just a year before the pandemic, I introduced a new and unheard of policy in my city.  I introduced a 100% buyback guarantee offer in heavyweight diamond and gemstone jewellery. Initially, much like other jewellers in my city, I used to offer buybacks only in gold jewellery.

But with time, I have seen a lot of appreciation in the price of diamond and colour gemstone jewellery. For example, if today a jeweller purchases emerald gemstones, the price will grow by at least 15% in the next 6 months, because gemstones offer a quick appreciation.

Previously, I had observed that many customers used to refrain from buying diamond or gemstone jewellery due to the absence of an attractive buyback policy. There was a fear of return on the investment, particularly more among high-end clients who want the assurance of a secure investment. Although they might never return the jewellery, they must know that they are not tied to a dead investment. Even if he returns the jewellery after 3 years, the prices will be more by at least 40%. Due to all these reasons, I decided to introduce a buyback policy.

Since I introduced the schemes, the sales of high-end jewellery have increased by at least 20-25%. Apart from high-end clients, there was a good response from middle-class customers also, as I was offering 100% buyback in gold jewellery studded with precious stones. This slowly helped a section of middle-class customers migrate from gold to diamond jewellery. It has boosted trust amongst the customers for diamond jewellery.

However, a majority of the jewellers in my city still offer 80-85% as buyback for diamond jewellery and do not have a defined policy for gemstone jewellery. An important reason behind this is their traditional nature of business where gold rules still. Most of their showrooms are still being handled by the older generations who do not want to risk buyback with anything other than gold.

I think that they have failed to realize the potential of diamond and gemstones, and how these schemes will ultimately benefit them in the longer run. However, I strongly think that we have to keep aligning our policies with the market opportunities, current consumer sentiments and be on par with the bigger chain stores. Consumers are leaning towards gemstones jewellery. We must show the value in the category, it will catapult diamond and gemstone jewellery demand to another level.

I strongly feel that the future of precious gemstone jewellery is bright, it presents a huge opportunity to the trade in the coming decades. Jewellers will need to fine-tune their existing policies and keep it on par with gold jewellery to be able to win the confidence of customers. It is the next big opportunity!