Gold merchants in Dubai are
seeking new ways to offer their gold products to tourists and buyers from
India. More and more gold kiosks are being opened which – in contrast
to large showrooms – can satisfy many potential customers in a short
period of time. Because it takes fewer employees to run such a kiosk, this
distribution model also helps sellers to reduce their costs. The typical
range of products contains gold ornaments, gold jewellery
and gold coins – all of which are very popular among walk-in customers.
Ramesh Ramani, CEO of BRR Jewellery, it’s important for businesses
such as his to cater to rising tourist demand. Those customers are mostly
tourists from countries like India who hope to find hot deals in Dubai. Due
to on-going high demand for the yellow metal, so-called Express Outlets are
springing up like mushrooms. The much lower rents for the small kiosks are
also playing a role and after receiving a licence
they can be opened virtually anywhere making it easy for merchants to
approach well-visited tourist centres. Another plus
for the gold kiosks are the low personnel costs as it only takes two to three
well educated employees to assure a smoothly operating business. The large
showrooms on the other hand require a lot more personnel and the
presentations of gold products take more time compared with gold kiosks. The
large Indian jewellery firm Sky Jewelley
recently opening its first gold kiosk in Dubai.
Dubai’s gold wholesale
dealers are profiting from the high demand for precious metals in India and
China. However the Indian government raised the fees on gold and silver
imports into India in mid January. While the fees
for importing Gold were raised by about 60%, the fees on silver were doubled.
Many gold and silver merchants in India are being tempted to expand their
businesses owing to the growth in Asian gold commerce. Dubai is at the centre stage of their interest as the Gulf state is
developing into an important market for international gold trading.
Dubai’s merchants are
increasingly confident that their precious metal sales will continue to
increase over the course of the year. Last month the Dubai Shopping Festival
attracted a large number of gold buyers from all over the world, with many
tempted by the gold jewellery on offer.