The jewelry 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 journey.
“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 said.
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 omnichannel 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 jewelry purchase journey and thus establish the ‘loyalty loop’. To drive market growth post-COVID-19 the industry needs digital strategies that will ensure gold jewelry 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 jewelry sales to collapse.
With stores closed, retailers such as major jewelry brands rolled out various incentives and offer 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 jewelry 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 jewelry retailers to reconsider their brick and mortar business model and implement digital as a core strategy, 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.