For the fine jewelers lining Chicago’s West Devon Avenue, business has shown that this year’s Diwali festival of lights has been less than stellar.
With the price of gold in the commodities markets hovering at $755 an ounce and an economic crisis in full effect, fine gold jewelry has become out of reach for many South Asian immigrants, who have traditionally celebrated the Hindu festival. The festival signifies a new year of luck and wealth, with the exchange of ornaments glistening with this precious metal.
Yet keeping in tradition has led to a demand for costume jewelry and imitation gold.
“People basically don’t have the money or don’t have the mood to buy anything,” says Nari Nagrani, the owner of West Devon Avenue’s bridal and jewelry shop, Niketan. “It is like someone is sick at home, you don’t feel like leaving the house.”
Tuesday marked the conclusion of the week long Diwali celebration, when many South Asian businesses open new account books and begin their financial year anew. While not all businesses follow this calendar, it is obvious that those interviewed are wary of ushering in the new year with declining sales and fluctuating gold prices.
For Raj Jewels, whose necklaces average $3,500 to $4,000, sales have plunged 30 percent from last year. Asked if there had been a surge during the Diwali holiday, Bhusan Tuleshar, and employee of Raj, said, “unfortunately no.”
Yet maintaining convention still has cash registers ringing, with a current trend toward purchasing more high-end costume jewelry. While jewelers dealing exclusively in gold products may be suffering, merchants selling well-made imitation products have seen a spike in sales.
“We did sell a lot of jewelry before the festival,” said Maria Fatima, an employee of Taj Sari Palace, which deals exclusively in costume jewelry. “I have definitely seen an improvement in sales,” Fatima said. Who went on say an average purchase of imitation gold bangles and necklaces ranges from $75 to $200.
Nagrani said, “We will order more costume jewelry because there is a market. Generally people are doing more business in the high end costume jewelry.”
Sahil, a premier sari shop on West Devon Avenue also deals exclusively in costume jewelry, a more affordable and realistic option for those hoping to match their baubles to the custom made saris Sahil crafts. “People like it because it’s cheap, and it looks real,” says Apexa Katel, a sales associate at Sahil.
While gold may have risen 300 percent in the past five years, Regal Jewelers on Devon Avenue say its clientele remains faithful. “They all know that we have a reputation for having quality product at reasonable prices and a large variety to choose from,” said Jayesh Shewakramani, the manager of Regal Jewelers. In an e-mail, Jayesh admitted that, “Business is slow, but recently we have been pretty busy due to the Indian festivals.”
In a recent trip to Regal Jewelers it was obvious that some people are not afraid to walk away from a purchase.
Jayesh and a customer hovered over a pair of earrings. “$850, $850, that’s it,” said Jayesh. “$750,” said the customer, leaning further and further over the counter. The bargaining process went back and forth for a few minutes until Jayesh had been pushed to his limit: “$800, I can’t go any lower, I can’t. $800, I have to make money too.”
The man then took his daughter’s hand in his and walked away.
Bargaining is part of the buying and selling process, said Jayesh in an e-mail. And while the customer had walked away from a pair of diamond earrings, Jayesh explained that, “surprisingly the bargaining has gone down. People come to our store knowing that we won’t charge them extra,” he wrote. “Many times people have offered us a price and even after the negotiations, if we see that we have room, we reduce the price ourselves.”
Kinetan owner, Nagrani has had similar experiences. “We are forced to give people a bigger discount,” he said. Luckily with the markup being so high, Nagrani says he can afford to slash prices.
Amie Zander, the executive director of the West Ridge Chamber of Commerce said everything she had heard regarding sales both in general and surrounding the Diwali holiday were positive, although she added that few establishments keep accurate records, making numbers to back up the claims virtually impossible to obtain.
“Everyone I spoke with said people were shopping and business was good,” Zander said.