The pandemic has upended offline sales, forcing Indian jewelers to rethink their traditional offline sales model and sell gold online for just over $1.
Total gold sales in the world’s second-largest consumer plunged after a nationwide lockdown led to a spate of store closures, but India’s nascent online gold sales business has boomed. This has prompted many jewellers, including The Tata Group, to sell gold on their websites or digital gold platforms for as little as 100 rupees ($1.35). Consumers can take delivery of gold when they buy more than 1 gram.
With mobile wallets and platforms like Augmont Gold For All and SafeGold, which is backed by the World Gold Council, e-gold sales are nothing new in India. So far, jewellers have avoided selling gold online because the bulk of gold buying in India is still done offline.
Ketan Kothari, director of Augmont, which has more than 4,000 jeweler partners, says:
“The pandemic has clearly changed the mindset of many jewellers who are now actively selling gold online. Online sales are just an extension of the concept of offline sales.”
Jewellers in India are seeing a surge in orders as the festive season kicks off for gold sales. Online gold shopping is gaining momentum in India. Online sales have been boosted by a younger generation of more tech-savvy consumers.
Ramesh Kalyanaraman, CHIEF executive officer of Kalyan Jewelry, said:
“We are witnessing the consumption interest of a new generation of consumers, especially young people who want to systematically invest in gold.”
According to the World Gold Council’s report last year, total spending by people under 45 who bought jewelry, including gold ornaments, on jewellers’ websites accounted for just 2 percent of global gold sales in 2019.
To boost sales, vendors are wooing Indian consumers with ultra-low prices.
Gaurav Mathur, SafeGold’s founder, says the drop in gold prices has increased trading volumes on the platform. People recognise that gold is cheap and they are more used to trading across categories, not just gold.
Augmont’s Kothari said:
“Our platform sales have increased 200% since February last year with consumers snapping up coins and bars priced at Rs 3,000 to Rs 4,000 on our platform. “The model of online gold shopping has been very popular during the pandemic, and we estimate that sales will increase by 20 to 30 percent during the holiday season compared to last year.”
Reprint indicated source：Shine Trader Limited Live information