Friday, October 23, 2009
ed a keen strategy of decreased
ed a keen strategy of decreased margins in profits to arouse their decrementing sales, as mentioned by a top official of Dubai Multi Commodities Centre. Gold jewellery’s retail sales in Dubai and the remaining UAE has plunged by 45 per cent in the 2009’s first quarter in course of more unstable prices for the metal. There was specially a steep decrease in sales – between 40 and 60 per cent- in comparison with the October- December quarter, in accordance with the data from the Dubai Multi Commodities Centre (DMCC).
“The jewellery trade should seek to adapt to the current market realities and focus on different customer segments while offering more variety at attractive prices to lure back buyers. The trade must find out ways to operate on a reduced profit margin to come out of the sales slump,” as mentioned by the Executive Chairman of the DMCC, Ahmed bin Sulayem. Dubai has armored its character as a fundamental centre for the gold trade despite the fact that there has been a period of unparalleled unpredictability in the regional and global gold trade, Sulayem said. “It is essential that we come together to address the challenges, and more importantly the opportunities that lie ahead,” he said on the bottom lines of an industry meeting last week.
“We all recognize that the world is in the midst of one of the worst economic crisis ever seen. Here in Dubai too, we face challenges. But this city, and the wider Gulf region, is better positioned than most to emerge stronger from the current global crisis,” he said.
Some of the gold retailers in Dubai, in response to the suggestion given by Sulayem said they were game to cut margins if their overhead costs, comprising of rents and other fees, go down as well. “We can’t operate without a 4-5 per cent margin in the current market situation,” a leading brand’s retailer said, speaking on condition of remaining anonymous. A total of 140 tonnes of gold was imported by Dubai during the first quarter that had risen from 122 tonnes during the same period in 2008. The retail sales of gold rose from Dh7.06 billion to Dh7.4 billion within a span of an year in 2009. Due to the fluctuation and uncertainty i