The Covid-19 pandemic has disrupted the brick and mortar business model of Indian gold retailers and has become a catalyst for online channels to boost sales, according to a World Gold Council (WGC) report titled Online gold market in India. Mobile apps/wallets are acting as catalysts in the growth of internet investment gold or digital gold.
The WGC report states that the online gold market in India is in its nascent stage, accounting for approximately 1-2% of overall gold sales by value. It adds that based on industry discussions, consumers aged 18 to 45 account for 70-80% of online sales, while those over 45 account for 20-30%.
“Covid-19 has forced jewellery retailers to reconsider their brick and mortar business model and implement digital as a core strategy. This focus on digital will be key to successful growth post Covid-19, but more importantly the seamless integration of offline and online channels will play a crucial role in driving sales,” the report adds.
“There is a real opportunity for growth in India’s online gold market if it can improve the end-to-end gold jewellery purchase journey and thus establish the ‘loyalty loop’,” the WGC points out.
“To drive market growth post COVID-19 the industry needs digital strategies that will ensure gold jewellery reaches more consumers at the consideration stage of their purchase journey… and reaches them more often,” the report concludes.