Online jewellery sales in India have grown quickly over the past few years, mostly due to millennial demand amid rising internet penetration.

The market share of online jewellery is predicted to reach 7–10% in the next five years.

Increasing affluence and a growing preference for online shopping are prime drivers of this market growth. Many jewellery products are available online, from traditional to contemporary designs. 

Indian consumers are increasingly becoming confident in buying jewellery online, thanks to a growing number of trusted e-commerce platforms.

Although online jewellery sales have increased, the average ticket size has stayed between 5 and 10 grams, driven mostly by customers between the ages of 18 and 45.

Several factors are driving this rapid market growth, including increasing affluence, a growing preference for online shopping, and a wider variety of online jewellery products.

Gold Jewellery Industry in India

The gold industry contributes 1.3% to the Indian GDP and is integral to the Indian economy. However, it is still fragmented, with small and medium-sized businesses dominating. 

There has been a noticeable shift in India’s gold jewellery business over the past few years, driven by changes in customer behaviour and governmental laws. Over the past ten years, chain stores’ market share has progressively climbed.

According to the global bullion body, online shoppers prefer stylish and lightweight jewellery crafted from 18-carat gold for regular use. 

India’s manufacturing sector is still unorganised and fragmented despite being one of the biggest producers of gold jewellery worldwide.

According to the survey, only 15-20% of manufacturing units have large-scale, organised operations.

Even while sales of jewellery online are increasing, it can take some time before most customers feel comfortable buying expensive items online.

What are the factors fuelling the expansion of the online jewellery market?

Some of the factors fuelling the development of the online jewellery market are 

1. Digitalisation

Digitalisation has been revolutionising the world for over a decade. The online jewellery market is no exception to this trend, as consumers are increasingly turning to digital mediums such as e-commerce sites, mobile apps and social media platforms for their purchases.

They can compare prices across various online stores and make informed choices about the most suitable ones.

Finally, online stores often offer competitive prices and discounts, which make buying gold jewellery more affordable.

Once purchased gold jewellery, buyers can also exchange gold for cash at uncertain times. Here, knowing the gold jewellery price today will become crucial. 

2. Personalisation 

Personalisation is another element fuelling the expansion of the online jewellery market. Consumers are becoming more interested in customising their jewellery, so they move to online shops, which facilitate them. 

They can also request specific designs based on their preferences or tastes in art or design.

3. Trust 

The third factor fuelling the growth of the online jewellery market is trust. People trust brands more today than ever because they feel comfortable knowing that buying something from those brands will last longer than other products on the market today.

Trust is a key factor in this, as online jewellers have worked hard to build a reputation for providing high-quality products and excellent customer service.

5. Convenience 

Convenience is one of the biggest driving forces behind online jewellery sales. People want to purchase their favourite earrings, ring, bangles or anything else without travelling to a physical store or waiting for delivery. This means that many more consumers are willing to buy their favourite piece through an online platform than if they had gone through a traditional brick-and-mortar retailer.

6. Increase in exports 

Another reason for the rapid growth of this market is an increase in exports. Exports have increased significantly in recent years. This has made it easier for Indian businesses to export their products since they are affordable compared to other countries jewellery.

Customers who have already purchased gold jewellery can exchange gold for cash during uncertain times. However, knowing the day’s gold jewellery price will be essential.

Conclusion

For any jeweller in India, having an online presence is essential, given the potential of the online jewellery business.

Jewellers with physical presence benefit from turning their offline consumers into online customers and increasing their share of wallets since omnichannel customers tend to spend more money. They may also use their current customer relationships and trust to obtain more online sales and establish a solid online reputation.