Stats, Figures, Scope of Digital Influence in the Indian Jewellery Industry
Are You Still Ignoring Digitalization?
Your Customers Aren’t.
7 Key Insights on Digitalization for the Precious Jewellery
Hopefully, in theory we know most of the Dos & Don’ts, let’s get familiar with the Why’s & How’s. With some staggering stats and figures on digital retailing, we explain how Digital Transformation is real, and how the Gems & Jewellery industry must harness the Power of Digitalization to up the ante
1. Do You Know Which Digital Format Suits Retail Business, O2O (Online to Offline) or Online Buying?
The Retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. The Overall Retail market is set to cross the $ 1.7 tn mark by 2020 from $795 bn in 2017. India’s e-commerce market is also set to grow at a CAGR of 30% for gross merchandise value to be worth $ 200 bn by 2026.
When it comes to jewellery, people prefer buying from people, not machines.
Today, consumers connect to the brand digitally through reviews, digital advertisements and digital influencers, before making a purchase. Indian consumer behaviour is now rapidly moving towards a Digitally Influenced Retail Buying, that has already surpassed Online Buying.
R.O.B.O expands to Review Online Buy Offline. This is the new shopping behaviour where the Consumer first gets Digitally Influenced regarding the seller & his Products and then visits the select store to try the product before actually 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.
2. Impact of R.O.B.O across Other Life style Consumer Segments & How is the Gems & Jewellery segment faring in comparison.
Digitalization – The New Success Mantra Consumer Segments
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.
Numbers clearly highlight the scope for change. You need to ask yourselves – If Not Now, When?
|Industries||Fashion||Electronics||Travel & Tourism||Automobiles||Jewellery|
|%Impact by Digitally Influenced Consumers||24%||64%||61%||40%||4%|
3. India VS The Top 3 Diamond Consumers of the World – An Analysis of Demography, It’s Significance and Scope on Diamond Consumption
Having understood the impact of digitalisation and ROBO across industries, let us explore how a digitally connected India can surge ahead among 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 in the near future.
So, Is India Shining? Not Really
As of 2019, in spite of 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.
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.*
*De Beers insight report 2015 in focus the Indian consumer. Survey covered 40,000 Indian woman aged 18-64 representing the 26.5 million female population.
Hence light-weight and lifestyle jewellery assumes more prominence and is the market segment to watch out for.
5. The Organized Jewellery sector has grown from 5% in 2005 to an estimated ~45% share in 2020. What Do We Infer?
Organised jewellery retailers have quickly adapted to the change in demography and the change in the retail landscape. It is strongly recommended that single-city/ family-run retailers should take a cue from what the Organised sector has done.
Below is the Ready Reckoner:
1. Instore Experience :
The in-store shopping experience has a huge influence on consumers. Keep it fresh & appealing.
2. Product Certifications :
The clients are more aware of the Quality standards now. Keep your product hallmarking & certifications ready.
3. Product Designs & Price Points :
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.
4. Get Omni Channel Ready :
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?
5. Plan Your Marketing & Promotions in Advance :
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.
6. Be Original:
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.
7. Empower Your Mid-management and your Team:
Delegate to Scale. Store Owners & the Top management should spend significant time on Core decisions & update themselves with new-age trends & concepts.
8. Strengthen Your Supply Chain:
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 Mosquito” – May Case
1. Good Domain Name:
A domain name is an identity for your business online. Eg. www.< domain name >.com. Have a name that represents your brand.
2. Mobile Compatible Website:
Ensure your website is viewable from smartphones too, as this is the most popular medium for information consumption.
3. Google Map Listing:
Verified page with Google maps to lead your customers to your physical store.
4. Facebook Page:
Create a Facebook business page and have regular posts to increase brand awareness
5. Instagram Page:
Create a business Instagram profile. Create interesting posts for consumer engagement.
6. Digital Marketing:
Shoot attractive photos and videos for your digital marketing and social media marketing promotions
Analytics form the basis for drawing business insights through different consumer data.
Helps in ranking your website on top of the Google search result page.
7. Social Media Marketing is an Exciting Combination of ART & SCIENCE. Follow the 8 Golden Rules for an Effective Execution.
1. Plan Ahead/Be Disciplined:
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.
2. Be Consistent:
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.
3. Patience is The Key:
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.
4. Choosing & Targeting the Right Audience:
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.
5. Content Matters – Be Creative. Be Original:
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.
6. You NEED Videos, MORE Videos:
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.
7. Have a Tech Platform/Landing Page:
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:
- Collecting user details
- Providing more info about your product/services
- Showcasing products
8. Measuring Your Social Media Marketing Results:
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:
- Bounce Rate
- % Of Video Views
“If You Change Nothing, Nothing will Change”
Still Confused? Talk to us
Or Whatsapp your queries at: 9739455000
We understand that Consumer Preferences & Behavior vary from city to city and market to market. Through personal interaction with your top 25 consumers, answers to these 5 queries will help you get the right direction.
- Which social media sites are daily/often visited, Facebook or Instagram?
- Have you seen jewellery ads on those social media?
- Which retailers did you see recently?
- If yes, in which social media?
- Would it excite you, if we shared the designs of new arrivals & promotions
through Facebook, Instagram & WhatsApp, rather than just print?