All that glitters online are diamonds and gold

For a majority of Indians, buying gold or diamond jewellery means visiting the familiar jeweller with all the members of the family on an auspicious day and time. They rely on the traditional jeweller, see a few collections, and select a piece for that particular occasion — be it a wedding, anniversary, or birthday celebrations.

A few years ago, if the concept of buying jewellery online, especially precious jewellery, was explained to  conventional buyers, they would have disagreed and said online would never work for jewellery as Indians like to touch and feel the piece. They would have never imagined that one would purchase a high-prized jewellery online.

But now the online jewellery business in India is growing with many startups foraying into the space backed by VCs. Earlier in September 2014, Ratan Tata made a personal investment in online jewellery retailer BlueStone. Tiger Global has invested in CaratLane.

In its White Paper titled ‘India Retail Trends 2014’, Tata Business Support Services (Tata BSS) points out, “The popularity of online jewellery buying will continue to grow in India. Interesting wearable designs, low-based price points, choice between 14-, 18-, and 22-carat gold, besides a range of diamond quality to pick from, boosts  interest in online jewellery portals popular among discerning youngsters.”

Says GV Sreedhar, chairman of All India Gems & Jewellery Trade Federation (GJF), “When it comes to online jewellery sales, the size of the market is around five per cent, and it has a very huge potential to grow. Silver jewellery is also picking up very fast.” He adds that younger generation sellers are more aggressive about online sales.

Seeing online’s huge potential, jewellery retail chain ORRA recently began its online sales operations. Vijay Jain, CEO and director of ORRA, said: “People get influenced by the digital medium, and online is the largest driver of sales. Also, you have a variety from which you can select one.”

Jain says it’s the hybrid channel that works. “Customers choose jewellery from online and then walk into the nearest store to purchase the same. We have also seen people buying one more piece of jewellery after visiting stores. It’s incremental sales for us. We believe that one-third of sales will come from eCommerce or digital.”

Ecommerce firm Flipkart, which started sales of jewellery in September 2013 with the launch of artificial jewellery, has been witnessing massive growth. For Flipkart, jewellery is one of the fastest growing categories, and it has witnessed 10x growth since January 2015. The eCommerce major has close to five lakh products and over 1,000 sellers are selling both artificial and precious jewellery in its marketplace.

Unique styles, eye-catching designs
Nutritionist and Naturopath Atraeyee Niharchandra loves to do online shopping and she orders at least one gold or diamond item per month.

“Sometimes I do order two. It depends on the offer and variety. I hail from a family of jewellers and I have heavyweight jewellery at home. But what I need is a lightweight chain or pendant that can go well with the western attire. Thin chains with small pendants are not usually available in stores, but available online,” says Niharchandra.

Niharchandra feels that from jewellery to electronics, everything is available cheaper online compared with retail stores. She has bought jewellery below Rs 40,000 so far. “Instead of stepping out in Bengaluru traffic, I can buy whatever I like sitting at home,” she says.

Sidhant Agarwal, a student, recently purchased a white gold ring with diamond for around Rs 50,000. “Online gives you several options and it is convenient that you sit at home and also get free home delivery. I gifted the ring to my mom,” he says.

Amazon started precious jewellery sale in December 2014, and has around 45 brands offering 34,000 unique styles. “From Joyalukkas, Malabar Gold and Diamonds to Kirtilals, we have leading brands in our platform, and also include a lot of retail jewellers. One of the key things in online jewellery sales is the trust factor,” says Mayank Shivam, category leader, Amazon Fashion.

Unlike specialised jewellery sites, eCommerce platforms like Amazon, Flipkart, and Snapdeal, among others, offer varieties and unique designs from across different brands to customers.

“Customers can compare and select their favourite pieces. They can also call customer service on certification, what to buy, how, and so on,” he says.

Youngsters prefer it online
As far as precious jewellery sales are concerned, jewellers witness sales below the age group 40, and they mostly prefer thin chain, pendants, and rings. They also see huge sales in jewellery that cost below Rs 50,000.

“We are seeing traction between Rs 25,000 and Rs 50,000, and what we are seeing is customers who are mostly below 40 years,” says Pankaj Chetan, CEO of ilovediamonds.com, a startup that was launched a couple of months ago. Its vision is to make every Indian woman own a piece of diamond jewellery. It has three trust stores in Bengaluru (flagship), Chennai, and Coimbatore.

“We also have plans to open more stores. In online, you can reach the entire country, and one can select from thousands of pieces,” he says.

 “If you take the price range, a nose pin is available from Rs 600, and there are bangles and necklaces worth Rs five lakh. The average selling cost is between 20,000 and 25,000,” says Amazon’s Shivam, adding it’s not just women, he is also seeing men choosing accessories online.

Chetan says only a small number of players are engaged in this online space and there is space for more. The startups focus mainly on lightweight items. “If you take stores, eight out of 10 would be selling only heavyweight jewellery like bridal jewellery that costs from Rs 3 lakh upwards. In online, it’s all about presentation, designs, and variety that you offer,” he says.

While these jewellers emphasise on trust and certification and hallmarking, they say websites also educate consumers. “The price of jewellery goes with the weight. Even if there is any milligram difference, it is priced accordingly, and there is no question of getting cheated,” he says.

Like other purchases — clothes or electronics — jewellery too has exchange and return offers. One can also pay cash on delivery, but the amount differs from one online jeweller to other. In case of ORRA, up to Rs 50,000 Cash on Delivery is allowed. “In terms of cancellation, it’s very rare, and if a customer cancels prior to delivery, there is no question of payment, and if it happens after delivery, we will reverse it by cheque,” says Jain, CEO of ORRA. Ilovediamonds.com offers 30 days return, free shipping, and lifetime exchange.

Online jewellery retailers are also trying apps. The CaratLane Perfect Look App, which is available on iOS and Android, allows one to record his/her own image and try on over thousands of earrings virtually. It is to check how jewellery looks on them. CaratLane also offers free Try@Home service wherein a jewellery consultant is sent to one’s home with pieces that clients have shortlisted. “We are working to create an app and we will launch in January or February, 2016,” says Pankaj Chetan of ilovediamonds.com.