Bling bloom in online space!
With changing time precious jewellery has started getting acceptance within the online channel. However, the key to success is innovation with personalization.BY Shipra Srivastava | Feb 15, 2017 | comments ( 0 ) |
Indian online jewellery market is booming; In fact, growth in the jewellery market is being fueled by the shift to e-commerce. There are many players including Valvetcase, Bluestone, Caratlane amongst others who have created magnificent growth stories. Highlighting the market potential, Vishwas Shringi, Co-Founder & CEO, Voylla Fashions Pvt. Ltd, said, “Online jewellery market can be divided into precious and fashion jewelry. As far as precious jewelry is concerned, it is still a very small percentage (less than 3%) of the total jewellery market size of $3billion. However, it is growing at more than 100% YoY, and will continue to grow.” Going further he added this category is further helped by media and Bollywood influence among the mass and small town customers.
Voylla is a leading omni-channel jewelry brand in India, has seen consistent online growth at more than 100% YoY. Recently, the company became associated with Viacom18 as ‘Jewelry Partner’ and launched Navrang jewellery line where the company recreates jewellry worn by the favourite actresses of TV soaps for every fan. Moreover, the company also launched discount-oriented line Nia which offers bling at throwaway prices. Presently, Voylla is retailed 130 offline retail touch points today and the company plans to double these over next one year.
The jewellery market in India has seen tremendous changes over the past few years. With the recent move of demonetization however, the scope for organized online jewellery players has increased tremendously. “We foresee a huge increase in enquiries and purchases due to the comfort of consumers in seeking to satisfy their requirement for jewellery by paying through digital means. This has long been coming, given that over the years there has been an exponential shift towards online retail, especially jewellery,” informed Kajal Jain, Founder, Ahilya. Ahilya is an online brand which specializes in fine handcrafted silver jewellery.
Giants taking the leap!
Gauging the growth potential in this market many business stalwarts invested in this emerging market heavily. Last year, renowned business tycoon Ratan Tata did the personal investment of about Rs.200 cr in the online jewellery retailer Bluestone. Likewise, yet another player Caratlane got the attention from retail major ‘Titan’, a subsidiary of Tata Group. The company acquired a stake in Caratlane for an undisclosed amount. Tata already run already established jewellery chain ‘Tanishq’ and has an extended portfolio of sub-brands in jewellery segment including ‘Mia’ targeted to working women and ‘Zoya’ offering premium studded jewellery catering to the needs of the elite. The company runs separate boutique stores for these two sub-brands. ‘Mia’ is retailed online as well. Also, Voylla raised capital last year and is deploying the capital to fuel-up online and offline business. Voylla launched its first store at Rajouri Garden, New Delhi in Dec 2015 and has been on rapid expansion pace.
Future of ‘Online Precious(Fine) Jewellery’
Though the market is growing but online shoppers often remain hesitant to invest in a high ticket jewellery items. While back only light jewellery was considered viable option for online retailing but things are changing rapidly. However, retailers are going to need to overcome the innate physical restrictions of e-commerce standards in order to capture a share of this growing market.
Speaking on same, Shringi, said, “Well if we have to look for affordable fashion jewelry, there is no hitch in shopping online and we will see significant growth in online jewelry market. However, if we have to consider precious jewelry, the market is slowly picking up but given high ticket item consumers still need touch and feel and prefer offline shopping. Hence, this segment will see slow growth as compared to the affordable fashion jewellery. “
E-commerce is the future and in urban areas it is already the present. The consumer over time is gradually warming up to making purchases in the online space. The momentum has definitely increased, post demonetization as well. Be it through choosing cash on delivery as they shop for the first time, to getting more comfortable with making online payments for subsequent purchases, we can see a wave of change even in the online jewellery segment. The price factor therefore hardly proves to be a hindrance with jewellery anymore.
“We understand that customers might be hesitant to pay higher prices, which dictate the Sterling Silver Jewellery market. Hence we provide BIS Hallmarked Certificates with every product we sell, which is certification by the Government of India, attesting to the purity of the silver we use, which is nothing lesser than 92.5%, “informed Jain.
As she summed up this trust by the consumer however only comes when one has been able to establish creditability and build a reputation. A strong customer service team is therefore also very crucial to making the brand what it is, along with providing quality products with some level of assurance.
No doubt, consumers these days are becoming comfortable with shopping online the trend will certainly propel the growth in this burgeoning segment. Online jewellery is an opportunity for the retailers which they can capitalize by coming up with innovative ways and personalization. The bottom line is consumers’ concerns should be addressed.
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