2021 had been a year of global paradigm shift and embracing the new normal. The constantly evolving digitalization in India has changed the entire approach of the business model. The Indian E-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion. The online business model has accelerated many industries and the jewellery industry is no exception to this!. Apart from the online market, digitalization has an impact on other areas from the design process to distribution. The advanced digital applications enable drafting high-quality jewellery designs with high end detailing. The Indian jewellery industry has witnessed immense growth in the online retail jewellery business. Many big players of the industry introduced their online business model and adapted the norms of the new normal. They adopted digitalization through a multichannel approach.
According to a recent report, the Indian Online Jewellery market is projected to grow to $3.7 Billion by 2025, at a CAGR of 28%.
Despite the convenience and seamless buying experience, there are certain categories people hesitate to buy online. The precious jewellery falls in a tactile category which means people prefer to touch and try on them before making a purchase. Also, authenticity and trust matters a lot in the jewellery industry. In this blog I will walk you through the insights from the key players of the jewellery industry on digital strategies and transformations, Online Jewellery Market, digitalization in education sector and the factors driving the growth of online jewellery.
Digital Strategies
Digitalization in the jewellery industry has accelerated during the pandemic but few jewellery brands had already marked their success in the online jewellery market. One of the leading jewellery brands is Candere by Kalyan Jewellers.
On talking about their journey Mr. Rupesh Jain , CEO and Founder of Candere states that Candere has always set our sights on becoming the most customer centric jewellery. We have worked only in the digital space right from the word go. Our focus on embedding technology in all walks of our daily business has given us a sure footing and placed us as one of the few JewelTech firms ready to operate at scale. We are now on a data driven and AI journey to enhance personalisation, recommend to our customers and make online jewellery buying an experience of a lifetime.
Apart from online presence, it is utmost important to strategize the way to leverage digitalization. During conversation with Mr. Paul J Alukka, Managing Director of Jos Alukkas, on digital Strategies during pandemic, he stated, Due to the pandemic, it’s imperative for jewellery brands to move to digital channels. Brands need to leverage social media platforms and digital advertising to market their products easily and to the right audience.
Companies should now strive to create an omni channel strategy to leverage the strengths from both channels to provide the best shopping experience. Soon companies can strive to adopt AI technologies to personalise customer experience on digital platforms.
Gen Z and millennials prefer online shopping due to the seamless shopping experience and access to a wide variety. Mr. Neel Pethe, Merchandiser, Waman Hari Pethe Jewellers talks about targeting Gen Z states, The covid pandemic has been a major factor for the rapid digitalisation in the global industry. It is a two way sword where you have to be omnipresent and in constant touch of your potential clients. In this era of millennials and Gen Z digital media presence is a must.
Omnichannel strategy is the most optimum strategy for a great success according to many big players of the Jewellery Industry.
According to Mr. Chetan Kumar Mehta, Chairman and MD of Laxmi Diamonds- Bangalore , In addition to all the digital mediums such as Mobile Applications, Website, Social Media and Artificial Intelligence, A brick and mortar store with one of kind jewellery, unique designs and attractive display is also important to attract customers looking for heavy jewellery, bridal collections. Online market is still limited for small purchases. Jewellry is extremely tactile and touch and feel is a must when we go for bridal collections.
Digital Transformation
Digital Transformation in the jewellery industry is quite recent due to immense trust in brick and mortar stores, customer satisfaction in touch and feel.
Jewellery brands are forced to make an online presence during pandemic. Mr. Jayantilal Challani from Challani Jewellery Mart states that, In the era of digitization, we need to walk along to reap the benefits. During this uncertainty, we stepped into the world of digitization through optimised websites and multiple social media channels. Engaging content, Interactive live demonstration and storytelling in social media grabbed a lot of attention and engaged our customers. We are now able to tap domestic as well as global audiences. This is just a beginning and we are looking forward to taking more giant steps in the coming days to retain the existing clientele.
The digital transformation in the jewellery industry is pacing up in recent times. On talking about digital transformations to cope up with the rapid adoption of digitalization and online market demand, Mr. Amarnath CS, President of Shroff Varthakara Sangha, Mysore (Jewellers Association, Mysore) and partner of Lalitha Jewellery Mart states that, Nowadays it is very important for a store to have digital presence and identity, customers prefer the store which is active and uploads interactive content on their social media pages.
He also added, ‘As the gold rates are soaring high, it is important to take precautionary measures and maintain all the books of accounts in digital form which can be accessed on our fingertips and having a good ERP Software with RFID integration will help in checking the physical stock in seconds. The wholesale sector should employ online shopping as this would eliminate the travelling threat and it will also increase their customer network.’
Mr. Amish Kothari, Director of Rosentiques Fine Jewellery expressed his views on digital transformation stating, The Jewellery industry has always been a bit behind on technological front, which is why the sector finds itself in the midst of the digitization process. The pandemic was an eye opener for the industry. A sound website with an interactive web design, Social media platforms, E retail Platforms and cloud solutions, Mobile apps and Virtual exhibitions are some strategies and ways to connect with customers.
Online Jewellery Market
The major factor- TRUST!
Few Indian startups and many big retail players used new-age technologies such as augmented reality and virtual reality to create the best user experience. Providing access to get hallmarked jewellery online with a wide variety of designs changed the game of jewellery shopping. E-catalogues, 360-degree views of products and virtual try-on have made a huge impact on the Indian Online Jewellery market. To eliminate the doubt of authenticity, the brand provides hallmarks and other certifications to ensure the purity of the jewellery.
It is very important for the brand with online presence to create the trust factor. From website, designs, content, payment gateways to certification, your entire digital environment should display the authenticity and reliability of your brand.
Online websites and e-retail platforms must sell certified or hallmarked gold and diamond jewellery to mark its authenticity. The products must be certified by reputed laboratories such as GIA, GSI, HRD and IGI. The gold coins should be BIS hallmark to ensure guarantee on gold purity.
For diamonds, it has to be the finest quality jewels according to the industry standards of S-I clarity and I-J colour diamonds.
Displaying the Quality specifications and genuineness of gold jewellery ensures the transparency and builds the trust factor.
The X Factor- Personalization
‘Personalization’ is ruling the jewellery industry in terms of branding and higher customer retention. Personalised marketing is the most effective digital strategy and opportunity during global uncertainty. Online user tracking and effective data analysis are resulting in expanding the footprint of the brand to a wider audience, both domestically and globally.
Precious jewellery is indeed a personal choice and is always special whether the individual is buying for themselves or gifting it to loved ones. If the customer opts for online shopping and views a certain type of jewellery, the user automatically gets a similar product recommendation and personalises their shopping experiences. The brand interaction with customers encourages the user to ‘feel’ the brand online. These techniques of personalization enhance the Lifetime Value (LTV) and are one of the most effective customer relationship optimization (CRO) techniques.
Factors driving the growth of the Online Jewellery Market
Many factors are driving the growth of the online jewellery market. Digitization ensures hassle-free, accessible and adaptable customer experiences. Digitization also helps in understanding the customer’s shopping behaviour. The customer experience, easy return and shipping policies, hallmark and security certifications, offers and cashback and superior quality products are the major factors driving the growth of the online jewellery market.
Digitalization in terms of education in Jewellery industry
Education in the jewellery industry is gradually evolving. The gems and jewellery industry is evolving as an organized sector by the advancement of technology and digitalization in terms of education. Generally, the Gem and jewellery sector requires skill with a practical approach but the global pandemic forced the institutes to turn these challenges into opportunities.
Mr. Rahul Desai, Managing Director of International Institute of Gemology (IIG) states that during the pandemic, IIG took an optimum leverage of digitalization through sharing knowledge via social media, online classes, virtual webinars and interactive sessions from globally recognized gemology experts. With technology advancement we were able to showcase the real time visuals of mining and high quality gems and precious stones.
Conclusion
In this era of digitalization and the pandemic, Digitalization has opened doors of opportunities to tap the global audiences. The key players of the Indian Jewellery Industry utilized the digitalization and technology advancement to survive and overcome the uncertainties. Many young entrepreneurs paved the success route by providing access to gold and diamonds anywhere and everywhere. The omnichannel strategy is going to rule the jewellery industry. Let’s look forward for the jewellery industry come up with more innovations and advancements
