Businesses are impacted because of Covid-19 and it is not going to be the same as before. The vaccines for Covid-19 are at least 6-12 months away & so is the Business Normalcy. Other consumer segments are digitally more aggressive than the jewellery industry. Digitalization is no longer a luxury; in the post corona era, it has now become a Necessity. Our honorable Prime Minister of India, Shri Narendra Modi, also highlighted a Technology Driven System as one of the pillars of India’s self-reliance.
The road to recovery for retailers must be focused on:
“Post Covid, one thing is for sure - Your Customers won’t Ignore Digitalization”
iLoveDiamonds is One-Stop-Shop for retailers to get a World-Class Digital Readiness. We are a team of domain experts with experience in Technology, Digital Marketing, Data Mining processes, Product Designing & Development, Luxury Retailing & Brand Communication. We have taken this initiative to share our experience to guide the retailers before they plan their digital journey & investments.
It is strongly suggested that every Retailer should self-educate & be familiar with the basics of Digitalization, its scope, its potential and set logical expectations. The below topics will also help you in deciding which digital formats will suit you depending on your human & financial resources. (You could also reach out for any specific queries that you may have at firstname.lastname@example.org)
Your Brand is Your Property. Get the basics done first, create a Website that gives your Brand a Digital presence. Make sure it emotes your Offline Identity & communicates exactly what your Brand stands for & the different Product categories it offers
Here the Brand not only introduces its Product Segments but also shares a huge catalogue of designs for customers to choose and shop online. This requires a High Capital Investment and is an expensive proposition which requires a dedicated team to maintain and scale, further increasing the monthly recurring costs.
This is a network model with a Standardized & High-Quality platform which partners with other related businesses. An efficient ecosystem is created through knowledge sharing and the modernization costs decreases through collaboration. Eg: Swiggy, OYO, Ola.
This is also a network model that allows retailers to publish their designs along with their desired selling price. A marketplace is an Aggregator model without Standardisation. Eg: Amazon
Consumer segments that require Touch & Feel for the buyer, has to adopt the O2O model. O2O means - Online to Offline and Offline to Online. The strategy here is to identify, attract and engage prospective buyers online and divert them to the offline stores for conversion.
Even though the Aggregator and Marketplace Platforms have different features, both connects the vendors and buyers together on a common platform. The customer service is nearly the same and good in both the marketplace and the aggregator business model. However, the core difference is – Standardisation.
The Aggregator regulates the Quality of the Products, the Category of its Digital Catalogue, its Presentation, recommends a Suggested Retail Price (SRP) and maintains a Select number of Participants. It is well defined by its Quality & Category.
However, a Marketplace hosts all Sellers, irrespective of the Product standardisation, it is a convenient platform to view all Categories and allows the Sellers to decide the Cataloguing & Pricing.
Most of the consumer segments have joined the Digital Bandwagon and are reaping the benefits. Unlike industries such as Fashion, Travel & Tourism, Electronics, Automobiles, etc., the jewellery sector still seems vastly untouched by this revolution and yet to leverage on its potential.
“Digitalization – The New Success Mantra for Consumer Segments”
Today, consumers connect to the brand digitally through reviews, digital advertisements and digital influencers, before making a purchase. Indian consumer behavior is now rapidly moving towards a Digitally Influenced Retail Buying, that has already surpassed Online Buying. This is the new shopping behavior where the Consumer first gets Digitally Influenced regarding the seller & his Products and then visits the select store to try the product before purchasing it.
Hence, for consumer products where the Touch & Feel is a significant deciding factor, O2O is the preferred format rather than pure Online. Clearly, the Gold & Diamond Jewellery segment has to adopt O2O as its Digital Format and it is imperative that every retailer has to be Omni Channel (Making your brand accessible Online & Offline) ready to maintain their Brand relevance in the future
Having understood the impact of digitalization & its influence across industries, let us explore how a digitally connected India can surge ahead amongst other world leaders.The penetration of the Internet and increased access to smartphones has ignited a digital transformation in the business landscape, changing the way people shop. A digitally empowered India is imminent soon.
As of 2019, despite faring better in terms of demography, internet and smartphone usage when compared to the US, India ranks 4th, in the demand for studded diamond jewellery. Despite these figures, De Beers 2019 reports point that India’s demand for diamond jewellery stood at a ~ $3 billion in comparison to $36 billion in the US.
Of the 1.3 billion population, the average age of an Indian as of 2020 is 29 years. For brands to target, cater and be accepted by this age group, they must make their product & communication aspirational, modernized & attractive.
According to a De Beers Indian Consumer Insights & Survey Report 2015, the Indian consumer of Diamond Jewellery comprises around 26.5 million women spread between socio-economic classes (SEC) A and B across Tier 1 – 4 cities.
This class is further divided into non-elite, elite and super-elite segments of consumers. 99% of the women belong to non-elite and elite segments contributing 60% of business and a negligible ~1% constitute the super-elite contributing a staggering 40%
The Indian diamond Consumer market comprises of 26.5 Mn Aged 18-64 woman in socio-economic classes (SEC) A and B Across Tier 1-4 cities the SEC A/B woman who are all Potential diamond buyers are further segment into non Elite, Elite and Super Elite groups.*
India has risen up the global diamond “League table” and in 2014 the country was the worlds Third largest consumer market for polished diamonds ,with an eight percent share of global diamond.*
Hence light-weight and lifestyle jewellery assumes more prominence and is the market segment to watch out for.
The organized jewellery sector has grown from 5% in 2005 to an estimated ~45% share in 2020. Organitsed jewellery retailers have quickly adapted to the change in demography and the change in the retail landscape.
“Individually we are One Drop,Together, we are an Ocean”
The in-store shopping experience has a huge influence on consumers. Keep it fresh & appealing.
The clients are more aware of the Quality standards now. Keep your product hallmarking & certifications ready.
Clients are spoiled for choices today. Keep your Inventory stocked with best-sellers & the latest trends. A Digital Catalogue will appeal to the interest of every consumer.
Out of sight, Out of mind. Keep your Brand & Products visible across Offline & Online channels. Consumers spend a lot of time on their mobile phones. Are you visible to them?
Get your Marketing Calendar drafted in advance for 6-12 months and plan for it diligently. Most Retailers have raised the bar with the Quality of their promotions. You will need considerable effort & planning to compete.
Make sure you make your marketing team Disciplined. DO NOT use copied images & content. Don’t risk your brand’s reputation with Legal & Proprietary issues, use only original or licensed photos and artwork.
Delegate to Scale. Store Owners & the Top management should spend significant time on Core decisions & update themselves with new-age trends & concepts.
Encourage & Incentivize your supply chain with product innovations and value-added services along with the products. You will definitely need more minds at work. Associate with the best always.
“If you think you are too small to be Effective, you have never been in the Dark with a
– May Case
“Your Future is Created by What You Do Today, Not Tomorrow”
In an Ecommerce website you not only introduce your brands’ Product Segments but also share a huge catalogue of designs for customers to choose and shop online. This requires a High Capital Investment and is an expensive proposition which requires a dedicated team to maintain and scale, further increasing the monthly recurring costs.
In jewellery buying, customers give Touch & Feel a high prominence. As retailers, instead of solely relying on online sales, you may optimize your focus in marketing your products online & attract customers to your store for purchases. If majority of sales could be generated
without “Touch & Feel”, many large players in India would not open Physical Stores. Set your expectations right.
Should you want to go digital without major capital investments, we recommend you to either partner with an O2O Aggregator or an O2O Marketplace or both.
“When it comes to jewellery, people prefer buying from people, not machines.”
For a Retailer it is important to have a Digital presence, but developing, maintaining & marketing your own E-commerce site requires a huge financial & human resource allocation with a team of domain experts.
If you think you can begin your E-commerce sales with a website costing Rs. 50k — 3Lakhs, then you are misinformed. Generating sales through Digital formats will require a dedicated team of Professionals to regularly manage Technology, create a Brand experience digitally, Marketing content, Social Media Marketing, Analytics & Product Development & Collections.
Listed below are a few topics that should help you decide if having your own E-commerce website is the right decision for you or not.
“Technology gets Cheaper Quickly and gets Obsolete Even Faster.”
Note: If you want a Competitive & World-Class platform for your brand, you should be prepared that the Maintenance & Upgradation of an E-commerce website will soon exceed the cost of creating one.
“A Website without Digital Marketing, the latter without Analytics is a Waste of Time.”
You need to keep your audience engaged and maintain their attention on the website. Keep it fresh, Keep it Interesting. Keep your designs on the website in sync with the ongoing trends. Stocking up physical inventory as per the trends could affect the liquidity in your business and hence you would need:
“Great Websites are built on Great Images & Videos”
Apart from the above 12 Points & many more, you will also have the Capital investments of many licensed software’s & hardware’s.
So, for a single city retailer to go Digital & scale efficiently, having your E-commerce site is NOT the only option. A Retailer can design his O2O model (online to offline) with just a Re-designed brand website and collaborating with Aggregators & Marketplace businesses.
Action without Planning is the cause of all failure. You may have the intent to achieve results through social media marketing, but what matters is the plan. Create social media calendars, ad strategies, budget allocation, themes, occasions-based promotions etc. in advance.
Often there are no shortcuts in Social Media Marketing. The only shortcut is to Be Consistent. What you do everyday matters more than what you do every once in a while. You can’t master a thing without consistently doing it.
Increasing your Social Media presence & achieving results through it does not happen overnight. Remember, social media marketing is a process. It is going to take time, but you will get it as long as you don’t give up. It usually takes 6-8 months of consistent & quality efforts to start seeing results.
If you don’t know who your audience is, you won’t know what they want, you can’t give what they want, and you won’t get what you want. Say you have chosen your audience, it doesn’t end here, you need to target them appropriately using various Interest based, geo-fencing/targeting based options available.
Your marketing content & advertising should sell dreams, make your brand Loveable & your product Aspirational. Focus on writing for your audience as they look up to you as a resource. Quality social media is all about making it personalized, adding value to your audience, being informational & being relevant.
While pictures speak a lot, videos can say stories. Marketing in 2020 is all about telling a story. The appetite for content has increased in the audience, the attention span has reduced. People can digest photos within a second or two. However, a video grabs more attention & makes people focus more.
Social media marketing is not just about posts on Facebook, Instagram etc. It is about how to engage your audience. When you run social media ads, it is imperative to have a landing page for:
Without studying the performance, you cannot decide whether your efforts are reaping benefits or going down the drain. To know the results, you must first know what to measure. Even if you want to, you cannot ignore Analytics.
Remember, social media marketing is simple – Plan, Execute, Measure, Improvise. You could begin with keeping a tab on the following:
“If You Change Nothing, Nothing will Change”