The Indian imitation jewelry market is quickly catching up with original jewelry, Indian economy and online ecommerce based selling. The reason lies in the consumer behavioural changes to adapt to imitation jewelry as well for special occasions than just investing in original jewelry, other reasons for growth being low cost, innovative designs, and rise in fashion among the rural and urban folks have made the business popular throughout the country. The imitation jewelry market in India is likely to grow at a CAGR or around 20% over the period of 2014-2018, says RNCOS in it's latest report.
One of the notable things here is that imitation jewelry manufacturing industry is moving towards more maturity in terms of methods of manufacturing and approaches to selling like more and more sellers are understanding the importance of ecommerce for this industry and opting to sell online. Not only this, the imitation jewelry is growing world wide so India in particular is also seeing growth in exports and imports of such fancy imitation jewelries. Sellers who understand the potential of this business are getting success and making fortunes doing just this business.
Unlike other industries/sectors, this imitation jewelry sector has grown slowly and consumer buying behaviour is very different for these products than any other products. In this sector, pricing and discounts is not something that drives the customer but features, detailing and genuinity.
Companies already in jewelry business have understood the seriosuness of being available online because there is definitely a limit to opening stores but online reach could be to areas inaccessible earlier, the other side of taking jewelry business online is that people don't get to see it in their hands and usually are very skeptical to order due to quality issues and genuinity. Despite the challenges, entrepreneurs and brands in this market appear to be focusing on long term growing potential in terms of internet penetration and deeper market accessibility, in near future ecommerce scenario is likely to become much more stabilized in terms of payments, logistics and growing familiarity and willingness to buy high value products online, now be it original jewelry or imitation jewelry.
“What online jewellers have done successfully is increase familiarity and comfort with high-value products online… ideally standard products such as gold coins and pendants can be mostly sold on the web and then custom-designed ones too can join the list,” adds Deepika Tewari, general manager, marketing for Tanishq, India’s largest organised jewellery retailer.
Primed for Disruption
Investors believe this market is primed for disruption. “There is also a fast-paced shift in online behaviour from buying just books and electronics to categories like jewellery and furniture. BlueStone will be a big beneficiary of this trend,” says Prashanth Prakash, partner at Accel Partners.
For women, shopping online provides a key additional benefit, he adds. “We believe buying jewellery is very involved, personal and emotional for women,” he adds. A handful of jewellery startups want to make the most of these trends. “We want to have revenues of Rs 450 crore by the end of this year,” says Sacheti of Caratlane. Kushwaha of BlueStone has even more ambitious plans — of being a billion-dollar enterprise by 2020.
So we can clearly say there is lot of scope in original and imitation jewelry, offline and online selling as there is different buying behaviours and different kinds of people preferring to buy online and offline.