Non-resident Keralite customers desert Kerala jewelleries

KOCHI: Kerala jewellers are facing a significant decline in the number of non-resident Keralite (NRK) shoppers from the Middle East, who were traditionally flocking local jewelleries during their annual holidays between June and August.
"The flow of NRK customers have almost dried up this season," observed Ram Mohan Kamath, general secretary, All Kerala Gold and Silver Merchants Association (AKGSMA)."It is no more attractive for Middle East-based Malayalis to shop for gold here as local gold prices are 10% higher compared to Gulf due to import duty," he said.
According to AKGSMA figures, NRKs contribute roughly 40% of the annual revenues of the jewelleries in Kerala. "Usually there will be shopping festivals by individual jewelleries aimed at these group, but this year I haven't seen any such campaigns," said B Girirajan, patron of AKGSMA. "There is a decline of 25% in sales during the current season, with some people bringing gold from the Middle East itself," said T S Kalyanaraman, president of Kerala Jewellers Federation (KJF).
With subdued demand from the expat community, jewelleries have cut down their marketing activities. "Running a campaign targeting solely at the NRK community is a costly affair. For the last couple of years, jewelleries have slowly stopped these campaigns," said Amjad Hussain, head of corporate marketing at Malabar Gold & Diamonds.
Meanwhile, M K Ansari, convenor of Kochi-based Exim Forum, said the decline in the number of NRK customers is part of the ongoing economic slowdown.