Jewellery retailing recuperates luster after preferable backing by investors
29th July 2016Category : Featured storiesPublished by :Rahul Verma Reading Time : 4 Minute News Sourced : India
The online jewellery market has emerged as one of the finest and fastest growing segment in India. For every precious and auspicious moment in India, wearing jewellery signifies celebration and tradition, be it festival or wedding. Especially for women wearing jewellery is part of our culture and for Men it is style statement and matter of pride, whereas, some values it for antiques and valuable ornaments linked to our ancient history and Raja and Maharaja.
India boasts of cutting and polishing of gemstone such as diamond, precious stones, religious pendant, gold, silver and platinum. The country has higher numbers of customers and experience hands of professionals working.
The leading jewellery portals are, Jewelsouk, BlueStone, CaratLane, Voyella, Mellora, Voy VelvetCase and Pipa Bella, also, offline companies are also growing via online platform. The online market is segmented into imitation jewellery and real jewellery segment. The real jewellery segment showed tremendous growth.
Euromonitor report backed the robust growth, averts, ‘Indian online jewellery market up from at Rs 5310 cr from Rs 1000 cr in year 2011.
Due to presence of most trusted brands with varieties and offers, international patent, designs and CoD, discounts options customers are moving to online options of purchasing Gems and Jewellery. The sale of Gold, Platinum and Silver is momentous and return policies make customer it a favorable position.
India Ratings and Research (Ind-Ra) has maintained a stable outlook for jewellery retailers, while revising the outlook for exporters to negative for FY17 from stable in FY16.
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Titan has tied up with Amazon and Flipkart to improve reach in market after government eased import, which sells everything from solitaires, rings, earrings, pendants, bangles and bracelets.
Tata Group’s leading brand Tanishq is the best ranked retailer and recently tied up with fashion platform Myntra on its expansion plan. “As part of the partnership, Mia by Tanishq, a fine collection of work-wear jewellery will now be available on Myntra. The jewellery is designed especially for the modern working women and the range includes earrings, rings, bangles, pendants and bracelets, priced between Rs 3,000 -Rs 50,000,” Myntra Head e-commerce Platform, Prasad Kompalli was quoted by PTI as saying.
Gitanjali Group, one of the oldest names in branded jewellery established under the entrepreneurship of Mehul Choksi, has online store ‘Jewelsouk’ and tied up with Flipkart, Snapdeal and Amazon to sell their product.
BlueStone, the frontrunner online portal is looking to grab Rs 1000 Cr revenue by 2018."People today are much more comfortable buying jewellery online. Transactions on our platform have been growing steadily and we are seeing about 5,500-7,000 orders per month. Our annualised run rate in FY2015-16 stood at Rs 250 crore," BlueStone.Com Chief Operating Officer Arvind Singhal told PTI.
According to company, it has around 4000 handcrafted with the average ticket size ranges between Rs 22,000-24,000 and its biggest single order has been for Rs 8 lakh. The company delivers across India and also to the US, UK, Canada and Australia.
The demand of Gold and Silver has seen thrusting during the festival season and marriages in India. This year to between 900 tonnes to 1,000 tonnes, the council says. Bullion is bought in India during festivals and marriages as part of the bridal trousseau or gifted in the form of jewellery by relatives.
The funding from venture capitalist and business houses poured fresh life to the expansion plans in the luxury and stylish jewellery market.
Way back, Warburg Pincus has announced Rs 1200 investment in Kerala-based Kalyan Jewellers led by T.S. Kalyanaraman. The trusted name Titan group acquired majority stake in Tiger Global-backed online jewellery startup CaratLane. The company competes with Tata, Bluestone, has raised Rs 200 crore in funding, led by Accel and IIFL. Gurgaon based Youshine, had raised $1.5 million in two rounds of angel funding in February and November 2012 from two angel investors based out of Switzerland.
The online market is steady in keeping up its gleam, though VC funding has helped some of them in expanding. The startups and brave entrepreneurship has helped market in making profitable run.
The space for online jewellery is expected to touch $22 Billion mark is one of the fast growing industry in India and e-tailing pushing this business further. Mobile users are becoming friendly on picking up their luxurious assets from the wide options available online. The specially designed marketplace is hugely concentrated to the big players, and some offline players are choosing online marketplace for varieties of gemstone and jewellery.