There is no doubt that the huge growth of e-commerce in India has helped many industries, and jewelry retail has also benefited from it. Its market size is expected to reach 3.2 billion US dollars in 2019. The popularity of smartphones (560.1 million Internet users), cheap data (120 million online shoppers), personal disposable income (29.8 million credit card holders), the integration of industry players, and the government's “Digital India” ( Digital India), "Start Up India" (Start Up India) and "Digital Udaan" (Digital Udaan) and other initiatives have played a cohesive role in this growth.
With the development of events in recent years, modern Indian women no longer want to buy jewelry and put them in the cabinet. Increasing purchasing power and women becoming more confident and daring to try their own fashion statements mean that jewelry is no longer only used for special occasions. They want to express their wishes, and they need the jewellery to have abrasion resistance.
These preferences clearly indicate that consumers are turning to more frequent purchases of lightweight products, rather than just bulky traditional designs.
McKinsey & Company said that by 2020, the share of the Asian online jewelry market will double from 6% to 12%, and it is expected to grow to around 18% by 2025, with annual sales reaching approximately US$79 billion. This huge growth opportunity has prompted jewelry retailers to scramble to establish business online, and several newcomers have also poured into this space.
While growing rapidly, the industry is also full of vitality. Therefore, some changes are taking place in consumer behavior and the industry as a whole. As "business as usual" is no longer the norm, agility and responsiveness to new trends and new developments will become the new buzzword.
Emerging online jewelry players allow people in second- and third-tier cities to buy gold and diamond jewelry at the click of a button. This ease of availability and deliverability is further supported by a variety of payment methods, including cash on delivery and other advantages such as simple installment payments and discounts. Online retailers also support a more comprehensive buying experience, with the goal of integrating the in-store buying experience into a digital platform with high-quality images, excellent navigation, and easy-to-use product configuration settings.
As more and more jewelry retailers realize the huge opportunities in e-commerce, competition in this market will become increasingly fierce. Consumer expectations are rising. They are not only looking for the best product options, but also for a great shopping experience. Retailers who want to remain competitive in this dynamic market will need to increase their efforts. It is estimated that as the jewelry industry implements innovative technologies to meet consumer demand, the prospects for online jewelry sales are bright.
