Dubai’s gold jewellery retailers must adopt a pricing strategy of reduced profit margins to stimulate their slumping sales, the top official of Dubai Multi Commodities Centre said on Monday.
Retail sales of gold jewellery in Dubai and the rest of the UAE plummeted by as much as 45 per cent in the first quarter of 2009 from the same period in 2008, amid higher, more volatile prices for the metal. The decrease in sales was especially steep — by between 40 and 60 per cent — in comparison with the October-December quarter, according to data from the Dubai Multi Commodities Centre, or 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,” said Ahmed bin Sulayem, Executive Chairman of the DMCC.
In spite of a period of unprecedented volatility in the global and regional gold trade, Dubai has reinforced its reputation as a vital centre for the 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 sidelines of an industry gathering on Monday.