Indian jewellers embrace online sales following Covid-19: WGC
Indian jewellery retailers are adapting their business models to the ‘new normal’ and pursuing an omni-channel approach and digital-focused strategy to increase sales.
The coronavirus pandemic and pan-India lockdown has led to jewellery businesses evolving their business strategy with an increased focus on online sales, the World Gold Council said in its new report, ‘Online Gold Market in India’, accessed by the Press Trust of India.
“Though relatively nascent at 1% to 2%, the online gold market in India is witnessing an enormous push from both digital players who see this as an opportunity and large jewellers who see this as a necessary supplement to their brick and mortar model,” said the WGC’s managing director for India, Somasundaram PR, the Press Trust of India reported.
The online market for gold jewellery, although only a fraction of the entire market, was a lifeline for jewellery stores during lockdown, as it was the only channel through which they could continue sales. A number of jewellery businesses launched e-commerce stores during lockdown or ameliorated the services on their preexisting stores in reaction to this.
As gold purchases are well-planned events, online retailers much find ways to give customers a special online experience to reflect this, said the WGC report. Integrating online and offline channels will also be important to increase sales, said Somasundaram PR. The main consumer group purchasing gold online is shoppers aged 18 to 45 years and the average price per order is between Rs 25,000 ($332.86) and Rs 30,000, according to the WGC report.
Since before the pandemic, the Union Government has been working towards organising India’s jewellery retail industry which currently includes a large number of small, unorganised businesses.
The government has taken steps towards this goal including introducing the mandatory hallmarking of gold jewellery in the new year, with a year’s grace period for implementation, as well as the promotion of digital payments. Businesses embracing online sales will also contribute to this trend.
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