E-COMMERCE IN DIAMOND JEWELLERY GAINING GROUND

E-commerce is steadily finding its way into the function of diamond jewellery retail the world over, in spite of several challenges and obstacles. Retailers are taking steps to overcome the critical challenges of trust and personal connections that are easier to establish in a brick-and-mortar world, and are seeking to establish these factors in a digital scenario

- Moeena Halim

The global diamond jewellery market was valued at $340.6 billion in 2022, and is expected to cross $490 billion by 2032. A key component of the retail diamond industry is the rise of e-commerce, something which was practically unheard of, till recently. Even as e-commerce in this segment is making its presence felt, the journey is arduous. One reason why online sales of diamond jewellery have not kept pace with those of other luxury goods is the factor of trust and personal relationships involved in the sale of this particular merchandise.

Diamond jewellery retailers who have stepped into the domain of e-commerce are taking several steps to manage the trust issues, and the results are beginning to show, albeit at a slow pace. It stands to note that online sales of gems and jewellery accounted for just 2% of the market in 2021. However, this figure is on the rise, according to Deepak Tulsian, consultant to the jewellery industry, and the founder of MyWisdom Lane. "As far as gems and jewellery is concerned, in 2021, the e-commerce segment was at only 2% of the entire market. In 2023, the number had climbed to 3%, and is expected to reach 10% in five to ten years," says Tulsian. He notes that in the US, e-commerce penetration in jewellery sales had already hit 13.2% by 2021. India has some serious catching up to do.

CHALLENGES AND SOLUTIONS