According to the recently received the report, the Indian online jewellery market has seen rapid growth over the last few years, driven by demand from millennials, growing internet penetration and a hike in smartphone sales. While Indian consumers still strongly prefer face-to-face when it comes to jewellery purchase, they were prevented from doing so during the pandemic.
The lockdown restrictions and an aversion to going out in public saw many consumers switch to buying jewellery online, and this accelerated the pace of growth in the jewellery e-commerce market.
The online market can be broken down into three segments, 1: e-commerce platforms (such as Flipkart, Amazon and Snapdeal); 2: specialised online jewellery retailers (such as CaratLane, BlueStone and Candere); and 3: jewellery retailers with their own websites.
While the number of platforms offering gold jewellery has increased, Metals Focus estimates that the share of online sales remains in the order of 3-5% of total jewellery sales value. Most sales are driven by consumers aged between 18 and 45. Interestingly, while online jewellery purchases have risen, the average ticket size has not; most jewellery purchased online has remained between 5g and 10g. Online buyers tend to purchase lightweight daily wear/fashion jewellery in 18-carat gold.
Looking ahead, Metals Focus estimates that the market share of online jewellery in the next five years could increase to 7-10%. This will be driven by greater online offerings from jewellers and a growing acceptance of online channels. Metals Focus forecasts that lightweight jewellery will continue to dominate online sales, with the average weight remaining in the 5-10g bracket.
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