5. Popular online precious jewellery stores
1. Caratlane (based out of Chennai)
2. Bluestone (based out of Bangalore)
3. JewelsNext (based out of Delhi)
4. JewelSouk (belongs to Geetanjali)
5. WearYourShine (belongs to PCJewellers)
6. KuberBox (based out of Jaipur)
7. Candere (based out of Mumbai)
8. iLoveDiamonds (based out of Chennai)
9. Malabar
10. Mehrasons
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6. How it works ?
1. Of all the jewellery designs on the website, companies has only 20-30% in inventory. Rest 70-80%
designs are manufactured on order.
2. Some websites offer “home try” option where they send prototypes of the designs selected by the
user. These prototypes are either made of brass or silver. These prototypes are made from the
same dye. They have MBA graduates from IIPM who come for home try.
3. If a user likes the product, they can order it online by paying by card or COD
4. EMI option is available, where user can deposit monthly amount in company’s account. When the
total amount is complete, company will ship the item to the user.
5. Jewellery gets delivered in tamper-proof container by Blue-dart, Aramex & Fedex. The shipment is
insured as well. Products in inventory are delivered in 1 week, but products not in inventory are
delivered within 2 weeks (for gold) and 3-4 weeks (for platinum), since platinum jewellery takes more
time to manufacture.
6. If user doesn’t like the product, some companies offer a 30 days 100% refund policy. Company gets
it collected and does Quality Check. Then the refund is processed. If paid by COD, money is
transferred to a bank.
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7. How it works ? (cont...)
8. They make customized jewellery as well but it cannot be returned.
9. Companies also have lifetime exchange policies, where some companies give 100% of prevailing
market rates and others give 70-90% back. Some companies have no lifetime exchange on
Platinum.
10. All jewellery is hallmark and certified
11. Some companies do not provide price breakup but other companies are transparent with their price
breakup of metal, stones, making charges & tax. Example1 - Caratlane charge 650/gm as making
charges. Example2 - Bluestone has price breakup for products, but Caratlane has price breakup
only for diamond studded jewellery that is more than Rs. 10,000 (and no price breakup for products
less than Rs.10,000 & pure gold/platinum products & products with solitaire [diamond > 0.20 carat] )
12. Gold charges applies are the average rate of gold over a period of time. But if the difference is
higher (more that Rs. 50), then charges are updated on the website.
13. Companies also sell their products via Flipkart and Snapdeal.
14. Some companies have retail outlets but others don't.
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8. How it works ? (cont...)
15. Some companies change the price of the ring as per the size and some companies have a flat rate
for a ring irrespective of the size.
16. Some companies also offer 1 year free service.
17. Jewellery designs shown on website are made in CAD software.
18. Many logistics companies such as Bluedart, Sequel, SpeedPost, Fedex, GoJavas, etc provide
delivery services of real jewellery
19. “Sequel” shipping charges - Rs. 325 within metro city with Rs. 75 for every additional 500 gms.
Value for shipment should not increase for more than Rs. 1,00,000. The max COD is Rs. 25000.
Also additional insurance would 2% on the Consignment Value or Rs.150/-, whichever is higher is
applicable.
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9. Examples of Jewellery sold online
A. Earrings
1. https://www.caratlane.com/jewellery/rhodeus-drop-earrings-ue00004-yg0000.html
2. https://www.caratlane.com/jewellery/halo-flame-earrings-je01337-rgp900.html
B. Rings
1. https://www.caratlane.com/jewellery/primrose-ring-jr00409-ygp900.html
2. http://www.bluestone.com/rings/the-caren-ring~1823.html
3. https://www.caratlane.com/jewellery/sparkle-diamond-ring-jr01437-wgp900.html
C. Pendant
1. https://www.caratlane.com/jewellery/trillion-wired-pendant-jp02768-ygp900.html
2. http://www.bluestone.com/pendants/the-amathea-pendant~2427.html
3. https://www.caratlane.com/jewellery/dahlia-pendant-jp00660-rgp900.html
D. Bracelet
1. https://www.caratlane.com/jewellery/infinity-bracelet-jt00073-wgp900.html
2. http://www.bluestone.com/bracelets/the-emily-bracelet~2347.html
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10. Questions
A. Inventory
1. How are companies able to keep inventory light?
2. Can they own dyes for all the designs shown on the website? If no, have they outsourced
manufacturing to multiple partners
3. How are they able to manufacture single piece? Isn’t it expensive for them?
B. Margins
1. If the prices are so transparent, how are companies earning profit on “just” gold jewellery that
is certified as well? Even shipment with insurance costs so much.
C. Shipment
1. What is the mechanism of shipping the jewellery from Bombay to Delhi? And how do you pay
for it?
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11. Jewellery business in India
1. India's jewellery market is worth some $50 billion (Rs 3,15,700 crore) a year
2. According to a Ficci AT-Kearney study, the Indian jewellery market is expected to touch close to Rs
5,30,000 crore by 2018
3. According to World Gold Council, Indians bought 662 metric tonnes of gold jewellery valued at $26.9
billion (Rs. 1,74,850 crore) in 2014, the most since 1995.
4. According to reports prepared in conjunction with Gold Fields Mineral Services (GFMS) analysts at
Thomson Reuters, In 2014 India was the world’s leading purchaser of gold consuming about 880
tonnes. This was at a time when global demand for gold fell by 18.7 percent.
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12. Online shopping in India
1. According to a report by Boston Consultancy Group (BCG), online shopping by India’s urban
consumers is likely to increase more than double during next two years in the country to 14% from
6% last year.
2. The total online retail market in India will be about $6 billion this year because of free delivery and
heavy discounting, Gartner Inc. estimates. That may grow to $22 billion (Rs 1,43,000 crore) by
2018, CLSA Asia Pacific Markets predicts.
3. Only 8.4 % of the female population is online, however the figure is poised to grow in coming years.
The women centric categories like jewellery will witness real growth in India with gradual erosion of
gender gap in Internet penetration.
4. With internet penetration and improved connectivity in rural India, jewellery e-tailing has a bright
future. Smaller cities will drive scale for jewellery e-tailers. Women in smaller cities are deprived of
fashion and trendy jewellery and this opens up a huge opportunity for startups in this space.
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13. Facts about Jewellery sold online in India
A. Market
1. BlueStone estimates that online jewellery market may be worth $2.5 billion (Rs. 16,250 crores)
in the next 5 to 10 years. Currently it accounts for less than 0.1% of the $55 billion jewellery
market.
2. Gitanjali Gems Ltd expects online sales to account for much as 20% of its sales in two to three
years from about 1% now.
3. eBay sells a trinket every four minutes; solitaire pendants rank third among the hottest selling
items after mobile phones and wrist-watches.
4. The major chunk of online jewellery transactions come from imitation jewellery space. The
current market size of imitation jewellery in India is pegged around Rs. 8000 crore, out of
which online retail contributes 2 % (approx Rs 150-180 crore).
5. When it comes to real jewellery segment the average ticket size shoots up to Rs.10,000 -
25,000. Whereas in artificial jewellery, average ticket size of Rs.500 – 2500. While offline
jeweller Tanishq's is roughly Rs 90,000. Mayank - mayankfb100@gmail.com
14. Facts about Jewellery sold online (cont...)
6. Price range of precious jewellery sold online is from INR 2,000 - INR 1,50,000
7. Precious jewellery website’s main target is young working professionals
8. 95% precious jewellery websites have contemporary fashion jewellery. They do not sell
traditional Indian jewellery.
9. Unlike other segments in India's ecommerce, jewellery has been on a slow boil. Reason is
Pricing and Discounts aren't drivers of jewellery sales online.
10. Growth drivers of online jewellery market is - "In-depth catalogue", "Accessibility",
"Affordability and “contemporary fashion/style".
11. Only 20 to 25 % of jewellery market in India is organised. Experts say there is a viable
opportunity to build branded, design-led jewellery businesses here, on both online and offline
platforms. Investors too are bullish about both these formats.
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15. Facts about Jewellery sold online (cont...)
12. Gold is now a fashion accessory. Fashion is not dying. It is the customers’ need to look
beautiful, to flaunt. The nature of the business may change, but requirements for luxury,
fashion are not gone,” says Vasudevan of Creador. “Customers in the US are buying 12 carat
jewellery. It will come to that in India soon.”
13. By 2015, the competition will not only be driven by prices, but by the styles, designs, services
and after-sales services offered to customers.
14. Challenges in precious jewellery e-commerce are aplenty. “Logistics, insurance, buyer
refusing delivery, returns logistics and payments”.
15. In the Indian jewellery landscape, customers generally like to touch and feel before they make
a purchase. To synergize the offline experience with the online business, companies are
planning to have a few offline touch points where customers can 'touch and feel' the products.
For real precious stones, however, most customers still prefer physical stores, just to be on
the safe side.
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16. Facts about Jewellery sold online (cont...)
16. "Nearly 25-30% of business comes from international markets - US, Australia, UK and
Canada" said Bluestone. Kushwaha said average ticket sizes to customers abroad hovered
around Rs 50,000. The roadblocks to shipping abroad include extensive paperwork for each
delivery which costs about $100 (Rs 6,000) and logistics issues related to returns.
17. "Delivery time typically takes 25 to 30 days due to the paperwork. If the regulations are eased,
there is a huge demand overseas for Indian designs," said CaratLane.com.
B. Margin
1. Imitation jewellery is a high growth margin business and etailers typically snap upto 40-60 %
on every transaction while real jewellery segment offers around 15-20 %. According to
Bluestone, margins are not more than 3-5 % in gold coins and bars. But for finished branded
jewellery, the margins are between 25 and 35 %. And add diamonds to gold, and the stones
alone can bring in margins of 100 % to a whopping 8,00,000 %.
2. There is no discount on just gold or platinum Jewellery since there's less margin. There is
discount in stones since there is more margins. But even in stones, solitaries have less margin
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17. Facts about Jewellery sold online (cont...)
B. Revenue
1. BlueStone claims a revenue run rate of US$15 million (Rs. 95 crores) per annum, growing at a
rate of 100-110% quarter on quarter in terms of revenue. In FY2014, the Bluestone's revenues
grew four times to Rs 17 crore; it is expected to touch Rs 70 crore for FY15.
2. Each month the Caratlane receives 500,000 page views and records up to 1,000 transactions.
Last year it grossed around $10m (Rs. 65 crores) in revenues.
3. Jaipur-based KuberBox services close to 200 orders on a monthly basis with an average order
size of Rs. 9,000.
D. Fund-Raising
1. Caratlane has raised over $50 million (Rs. 325 crores) in VC funding.
2. BlueStone, backed by Accel Partners, raised $15 million (Rs. 95 crores) in the four years of its
existence.
3. Last month, private equity (PE) firm Creador said it has invested Rs 135 crore in a minority
stake in publicly listed Delhi-based jewellery makers PC Jeweller Ltd.
4. Also several ventures such as 21 Diamonds and JewelsKart have shutdown.
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24. End.
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errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All
information is provided on an as-is basis.