How E-commerce is Reshaping India's Jewellery Industry
Jewellery has always been an indispensable part of the Indian culture, with its history dating back to nearly 5000 years.
Jewellery has always been an indispensable part of the Indian culture, with its history dating back to nearly 5000 years. Although times have changed, the country’s love affair with precious gems and jewellery still remains strong. The Gems and Jewellery industry is amongst the largest and most lucrative sectors within India’s fast-growing economy, accounting for 7per cent of the total GDP. According to recent reports, the domestic Gems and Jewellery market is estimated to be worth USD 100 billion by 2025 as a result of greater spending power, a rise in the number of working women in the country and the emergence of e-commerce.
The unprecedented growth of Indian e-commerce has opened a whole new realm of opportunities for this segment. The online jewellery industry, which has grown manifold over the last couple of years, will reportedly reach USD 3.2 billion by the end of this year. A multitude of factors has contributed to this growth, with the proliferation of the internet and smart devices being the most significant one.
The Online Jewellery Market Presents the Next Multi-Billion dollar Opportunity
Since its advent, technology has played a pivotal role in changing how businesses across industries operate, and the jewellery sector is no exception. With the Fourth Industrial Revolution upon us, more entrepreneurs and start-ups operating in this sector are adapting to the increasingly digital market environments and taking advantage of the e-commerce marketplace to capture a larger audience base. The competition in the space is getting fiercer by the day with the addition of new fine jewellery brands. In fact, even traditional jewellery makers are now turning to e-commerce platforms to sell their offerings.
The Government of India has taken a number of initiatives to propel the growth of India’s online jewellery industry. Several laws have been passed to secure and stabilise the digital payments ecosystems. Additionally, there are laws to protect the interests of consumers while making transactions online. This has resulted in a substantial increase in the usage of cards and digital wallets for online purchases.
That, along with a robust growth of smartphone users in the country buoyed by cheaper handsets and mobile data packs; more Indians are now considering buying jewellery from online portals. The shift to e-commerce platforms has also been driven by the ability to explore multiple options at the touch of a button. Modern consumers are inclining towards online channels on the back of comfort and convenience.
Challenges and Future Scope for the Online Jewellery Industry of India
Despite experiencing rapid progress in recent years, the online jewellery industry in India is still at a nascent stage. It is estimated that online jewellery shopping contributes to only 1per cent of the overall shopping of jewellery as the majority of purchases is made via offline stores. Come to think of it, the major factor impeding the expansion of this sector is the lack of trust. For a high-value item like jewellery, the majority of the population still prefer to go to physical stores and try it first before making the final purchase.
Now, however, a few companies engaged in the online jewellery space are bringing a positive change to this scenario. The mushrooming of online jewellery shopping stores indicates the promising future of this industry. Although there still remain a few hurdles, the year-on-year market growth of the online jewellery sector is said to be at 100per cent, whereas the offline sector is growing at just 15-20per cent.
By Rupesh Jain - www.entrepreneur.com
Founder & CEO of Candere