Cash ban drive to favour India's big gold jewellery store chains: WGC
India's drive to bring transparency to bullion trading, along with the rise of branded gold jewellery, could help major retailers raise their share of the world's second-biggest gold market to 40 percent by 2020, the World Gold Council (WGC) said.
Somasundaram PR, managing director of the WGC's Indian operations, said on Tuesday Prime Minister Narendra Modi's move to scrap 500 and 1,000 rupee banknotes - a 'demonetisation' crackdown on corruption and tax evasion - will boost larger jewellery retailers' market share from 30 percent in 2015.
"The issue the industry is facing today is lack of transparency," said Somasundaram, speaking in an interview as the WGC published a report on the Indian gold trade. "This is addressed by demonetisation...Consumers will be forced to pay by cheque or digital payments for large transactions."
Known as 'organised retailers', firms like Titan Co Ltd, P C Jeweller Ltd and Gitanjali Gems Ltd have seen their share of a traditionally fragmented market rocket from just 5 percent in 2000 as young consumers switched to branded jewellery.
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