Buying gold in India is traditionally associated with auspicious events. Weddings and festivals are the major occasions when Indians buy gold in large quantities. These transactions often take place between a customer and their trusted gold jeweler.
In a recent report, it was noted that the growing e-commerce market, which is forecasted to reach $22 billion in three years, is starting to challenge the conventional ecosystem.
According to Gitanjali Gems, the largest diamond and gold jewelry retailer in India, they expect growth in online sales, with a projected 20% increase in sales over the next three years from about 1% now. This growth has prompted Ratan Tata, former chairman of Tata Group, to invest in a Bangalore-based online jewelry store, BlueStone, last year.
“Indian consumers prefer to touch and feel the jewellery before buying, but the change in consumer behaviour will happen quite fast,” Gitanjali’s chairman Mehul Choksi said in a phone interview. ‘We have tied up with all the major online platforms and we are always looking for more tie-ups.’
Gitanjali sells its diamonds and gold jewelry across the nation through more than 4,000 points of sale. It has an established market in India, the US, the Middle East, and Europe. It has Shah Rukh Khan and Katrina Kaif as its brand ambassadors.
Indian Jewellers Shift Online- Gold at Doorstep
Right now, the e-commerce business is on a fast-paced rocket. Everyone wants everything in minutes and at their doorsteps. Recently, jewelers have been tying up with Amazon, Flipkart, and eBay. Last year, after the government eased import curbs on gold bars and coins, these e-commerce companies were approached by the jewellers. According to statistics, it is suggested that the total online Indian market for this segment could be about $6 billion this year, mainly due to free delivery and heavily discounted prices, Gartner Inc. estimates. That may grow to $22 billion by 2018, according to CLSA Asia Pacific Markets.
