The boom of E-tailing has spread like wildfire and has not spared any sector as such. The beauty of e-retailing is such that sectors including electronics, food and many others have gone online to find their share within a market that is not in any way stopping soon.
While there is breakneck growth for other sectors, the story for the jewelry sector is a bit different. E-commerce might be a suitable option with all its glitter and ease of access, but it has still not emerged as a feasible market to sell the yellow metal on. Estimates have showed that the market size for online jewelry and all other related metals is around $135 million. However, the total market for jewelry retail across brick and mortar stores is predicted to be around $75 billion. The percentage of the total sales being done online is, hence, microscopic in view of the total numbers in the market.
What’s more, in India only 0.18 percent of the total jewelry sales reported in 2017 came from the online E-commerce market. The total revenue generated by jewelers online, throughout the year, was some Rs 600 Crore. This total value can easily be matched by the annual sales of any one top-performing retail outlet in the gold-fanatic market of India.
E-commerce and Jewelry
Now, with the numbers out of the way, we can finally ponder over the reason behind this disparity in numbers. It’s not like the demand for gold jewelry is dwindling in any way. People are buying gold more than ever before, and the market is full of festive buying by keen citizens. However, the poor response online has showed us that e-tailing for jewelry in India and pretty much across the globe has a long journey to undertake, before it can give some sort of competition to other offline jewelry retailers.
The poor response by Indians to online jewelry retail is influenced by a lot of reasons. These include:
- The preference of Indian consumers. Consumers in the Indian market, especially those buying gold, go for the touch and feel model, than any other approach. The purchase of gold is not a decision that can be undertaken by an individual alone, as is the case with most online purchases. The purchase of gold is hallmarked by the interest of the whole family, as every member feels the yellow metal and gives their say. In such circumstances, consumers are willing to go to jewelers and see the metal, rather than prefer convenience at the cost of not seeing the metal at all.
- Every person comes with their own facial features, which is why there is no one size and shape fits all concept with gold. The purchase is extremely customized and is only done after a certain piece is recommended by all family members.
- The international and local gold price.
- The in-store experience with jewelers is what makes a purchase even better. The discussions and the recommendations by such jewelers aid the strategic decision-making process, and ensure that you get the finest piece.