ABDUL WAHID, Owner, Al Mandoos Jewellery, outlines the jewellery trends prevalent in the Emirati region and states that increased tourist numbers are expected to drive a 15% to 20% rise in jewellery sales at the Al Mandoos chain stores. He notes that the UAE’s reputation as a jewellery hub, combined with diverse designs and competitive pricing, attracts buyers from around the world.
What are the current jewellery market trends? What are the best sellers for Emirati clients?
The current market trend is all about gold. The demand for gold is bigger than other jewellery, including diamond-studded pieces. For an Emirati, the bestseller is traditional jewellery, which is our forte. However, we are adding some new touches to the collection, so it looks up to date. Therefore, the demand for these pieces is guaranteed to be high.
How many stores does Al Mandoos currently have and what are the growth plans for the year 2024 ( In terms of new stores and new markets )
We have 27 branches, but they are under different names. Out of these, 10 branches are under Al Mandoos Jewellery, and the other 17 branches are in different names.
What are the demands for varied jewellery products, such as plain gold jewellery, diamond jewellery, gemstone jewellery, platinum jewellery, silver etc.?
Demand for diamond jewellery is not as strong as before, and we are experiencing not severe, but a slight decline in the category. Nowadays, white gold jewellery set with synthetic or lab-grown diamonds is also moving. On the other hand, demand for 18-, 21- or 22-karat is increasing.
Do you provide customised jewellery options to your customers?
Of course, we do. We have our own manufacturing unit where we create exclusive designs which are only sold at Al Mandoo’s Jewellery. Additionally, if there are specific designs that a customer wants, we cater to those as well.
What is the USP of Al Mandoos ?
We are renowned for our exclusive wedding rings and diamond sets, which appeal to both brides and wedding guests.
How do you see overall sales vis a vis previous year?
We anticipate a 15% to 20% increase in jewellery sales, driven primarily by a notable rise in tourist numbers. Tourists often purchase jewellery here before returning to their home countries, as the UAE is a renowned jewellery trading hub. The country offers a wide variety of designs, including Italian, European, Indian, Arabic, and Far Eastern styles. Additionally, the reasonable pricing and high quality of the jewellery further attract tourists. These factors are expected to boost our sales by 15% to 20% this year and next.
What is the marketing/promotion boosting growth in sales?
We rely on boosting sales through word of mouth and don’t depend on any social media or advertising tools. Our loyal customers recommend us to new customers across all our branches.
As one of the leading UAE retailers, what challenges do you foresee in the coming year, and what are your plans to combat them?
One of the challenges we foresee in the future is the dramatic increase in gold prices. Analysts predict that gold prices could soon reach $3000 per ounce. This increase may reduce the purchasing power of middle-class customers, who prefer to buy gold jewellery. To address this issue, we are making smaller jewellery pieces to make them more affordable for our customers.
Another challenge is the shifting tastes and priorities of the new generation. Given a choice between an iPhone and a piece of jewellery, they often prefer the former. Unlike previous generations, they are less interested in gold or jewellery. We face the challenge of finding ways to make jewellery appealing to them.
The third challenge is the intense competition in the jewellery sector. Every year, more than 100 new jewellery companies enter the market, and the UAE is considered as one of the fastest-growing markets in the world. This kind of growth is unparalleled in other countries. While it indicates that the market is strong here, it also means increased competition for retailers. To stand out, we differentiate ourselves by offering exceptional services to our loyal customers and by providing products with superior finish and quality.