SME Times News Bureau | 16 Jul, 2020
The jewellery industry which is going through a slowdown in consumption
demand amid the pandemic would require digital strategies for its growth post
the Covid-19 crisis, according to a report by the World Gold Council.
The report noted that although the online gold market is still in its nascent
stage in India, digital and social activity plays a key role in the purchase
"In urban India, consumers browse online/mobile apps pre-purchase and use
online blogs and social media for ideas and inspiration. Mobile apps/wallets
are playing a key role in the growth of Internet Investment Gold," it
COVID-19 has caused retailers in India to re-evaluate their brick and mortar
business model and implement an enhanced digital strategy, said the report on
the online gold market in India, adding that successful retailers embrace an
omni-channel strategy to boost online sales.
"There is a real opportunity for growth in India's online gold market if
it can improve the end-to-end gold jewellery purchase journey and thus
establish the 'loyalty loop'. To drive market growth post COVID-19 the industry
needs digital strategies that will ensure gold jewellery reaches more consumers
at the consideration stage of their purchase journey and reaches them more
often," it said.
The WGC report noted that the outbreak of COVID-19 and consequent closure of
stores from mid-March caused jewellery sales to collapse.
With stores closed, retailers such as major jewellery brands rolled out various
incentives and offers in April, such as providing opportunities to lock in
prices, discounts on the gold rate, gold ownership certificates or gold
vouchers, and exchange of gold coins for jewellery via their e-commerce
websites during Akshaya Tritiya, it said.
"Even so, online sales volumes were nowhere near the same period in 2019.
COVID-19 has forced jewellery retailers to reconsider their brick and mortar
business model and implement digital as a core strategy,a the report said.
This focus on digital will be key to a successful growth post COVID-19, but
more importantly the seamless integration of offline and online channels will
play a crucial role in driving sales, it added.