The World Gold Council, in a report titled “Online Gold Market in India,” said the disruption of COVID-19 has caused jewelry retailers in India to re-evaluate their existing business model and noted that the Online retail adoption accelerated during COVID-19 across all categories.
“Although relatively nascent at 1-2%, the online gold market in India is experiencing a huge push from digital players who see it as an opportunity and from large jewelers who see it as a necessary complement to their business model. brick and mortar, “WGC Managing Director, India, Somasundaram PR said.
He added that gold jewelry retailers need to improve the end-to-end jewelry shopping experience and establish the “loyalty loop” with consumers.
The online gold market in India accounts for only 1-2% of total gold sales in terms of value and in the third quarter of calendar year 2019 only 17% of urban gold jewelry purchases and 3% of rural gold jewelry purchases were made online, the report says.
“Buying jewelry, in most cases, is a well-planned family decision involving months and years of savings. Therefore, the online experience should reflect this long-term commitment and cannot last as long. a simple transactional market, ”Somasundaram said.
He further noted that for retailers, creating a seamless experience that integrates offline and online channels will be key to attracting more consumers and making the difference between buying gold online and buying gold. ‘a gold ETF (electronically traded fund).
The report further states that consumers between the ages of 18 and 45 account for 70-80% of online sales, while those over 45 represent 20-30%.
The average ticket size for buying gold jewelry online is Rs 25,000-30,000 and is purchased for daily use (50%) and festivals or gifts (50%), according to the report, adding that Online sales of gold bullion and coins are popular during auspicious times. feast days like Akshaya Tritiya and Dhanteras.
Some of the barriers to selling gold online that prevent potential buyers from making an online purchase include the desire to hold or touch the product, to have the product immediately, concerns about the return policy, pricing issues, lack of awareness and understanding about Internet Investment Gold (IIG) in India, according to the report.