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L.N. Revathy

COIMBATORE, March 19

GOLD could turn as a more reliable investment instrument and it could spur the jewellery segment in a big way, a World Gold Council (WGC) official has said.

"The value of gold is determined by fundamental economic factors that are outside the control of any Government. By contrast, the value of the paper currency is entirely dependent on the monetary policies of the Central bank that issues it, which is why the market never trust currencies to the same extent as they trust gold," Ms Hiroo Mirchandani, Marketing Director, WGC, told Business Line.

The unpredictable fluctuation in the prices of equities would also make gold an important investment instrument, she said.

It was for this reason that WGC had launched a promotional campaign for gold. "The message is very clear, that there is no substitute for the real thing, gold," she said. The gold branding programme, for instance, provides the `umbrella' positioning for gold, and promotional campaigns evolve around these, Ms Mirchandani said.

Stating that WGC was trying to tap the potential of gold by strengthening jewellery sales, she said ORG Marg, a marketing research agency, had conducted a research across 31 cities in the country and its findings were very positive. It had helped the trade in repositioning the jewel range to suit the market requirements.

The study had revealed that selling jewellery in India, would undoubtedly lie in luring the younger generation by increasing the sophistication of the product range, at affordable prices. "There is a deliberate effort in setting out to appeal to younger people," she said and pointed out that the response to the `Collection G' jewellery was overwhelming in centres such as Mumbai and New Delhi.

"There are over 400 intricate designs on offer in about 172 outlets," she said. "The Council's marketing strategy is research-driven, to suit the changing profile of the consumers, who had seen gold as too expensive and not flexible enough to convert quickly and easily into jewellery. Research, rebranding, innovation, development of new products... the list in promoting and bringing a stability in gold demand, goes on and on," Ms Mirchandani said.

Moreover, "as jewellery and a form of adornment, it is only natural that gold is also subject to changing styles and fashion. As a jeweller, there is a need to work with designers to bring gold out of its design traps. It is all about knowing what the consumer wants and giving it to them," she added.

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