As with other industries in Asia, such as ‘online groceries’ and ‘online health and beauty’, the online market for jewellery has emerged as one of the most dynamic and fastest growing segments in the region.
Hugely driven by the increasing internet penetration and rising disposable income of Asian consumers, this ecommerce category has displayed the astonishing compound annual growth rate of 62.2% during the period 2011-2014.
With the living standards in Asia expected to grow even further over the next few years, the online market for jewellery is set to reach as much as USD 35 billion by 2019, representing a fantastic opportunity for retailers in this industry.
The key markets that should be considered when expanding into Asia are: India, China, Singapore and Indonesia.
With jewellery playing a major role in India’s culture and ethos, shoppers within this category represent a highly engaged, relatively conservative and very demanding audience. Yet, they become more and more open to purchasing their adornments online, attracted by the lucrative prices offered by ecommerce players.
Young consumers, between the age of 24 and 35, coming from metropolitan cities, are driving the most demand for online jewellery in the country, as they are more tech savvy and accustomed to the internet.
Although the Indian online jewellery market is currently dominated by a few major players, an increasing number of retailers have started to sell their inventory on e-marketplaces, such as Craftsvilla and Jewelsnext, which have proved to offer a more profitable business model.
In order to be successful and build customer confidence, offering certificates of authenticity is a must for retailers engaging in the landscape of Indian online jewellery.
The Asian online jewellery market is currently dominated by China, explained by its large internet population and rising personal disposable incomes.
Further growth of this category is expected over the next few years, due to the rise in demand in lower tier cities in China and even deeper internet penetration throughout the country.
Although security concerns about buying jewellery online still affect Chinese shoppers’ purchasing decisions, e-marketplaces such as Tmall and Tencent create more trust and confidence among consumers, and provide online players with an ample opportunity to operate highly successful web stores on well-established and secure selling platforms.
Although the size of the online jewellery industry in Singapore is significantly lower compared to India and China, the country’s robust ecommerce market and the increasing popularity of cross-border trade, make Singapore an ideal location for online players, operating in this industry.
Similarly, the Indonesian ecommerce jewellery category is still extremely small, as very few players operate in this market. However, the country has a great potential, since the average basket size for jewellery purchases is significantly higher when compared with established markets such as China and India.
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