Current Indian Jewellery retail market stands at around USD 38 billion annually, which is largely traditional and is poised to grow at CAGR of around 10% to 12% in next five years. While the Indian e-commerce (retail) is expected to grow with a CAGR of 20% till year 2020, it is expected that the online jewellery retail to grow with similar rate in next five years. As per the industry reports the size of online jewellery in India is expected to hit $3.6 billion in the next three years. Moreover, demonetisation and young metro population with high disposable income the online jewellery segment is growing rapidly with enough space for anyone to grow big in this segment.
Online jewellery retail market offers exponentially high choices, ease of buying, 3D modelling, design customization free trail at home, and host of other new features that makes Jewellery buying online a lot more fun, easy and transparent for retail consumer. VelvetCase.com is an emerging e-retailer in this segment. This June, the company has raised upwards of USD 1.5 million from the marquee investors in the industry.
Highlighting the growth aspect in on-line jewellery segment, Kapil Hetamsaria, CEO and Co Founder, VelvetCase.com, said, “Yes, consumers are ready and are buying jewellery online. The proof of concept is already there with online Jewellery platforms like ours and our peers like Bluestone and Caratlane. In fact we have been able to close a deal worth Rs. 1.62 Cr. On Whatsapp! Customers’ are extremely smart and judicious with their hard-earned money and they will not make a purchase unless they are fully satisfied with what they are buying, be it online or offline or it is a high-ticket purchase or a low-ticket item.”
VelvetCase.com receives 700 to 1200 orders per month with an average ticket size of Rs 25,000 – Rs 30,000. The company has around 400 seller partners, which include both retail brands as well as independent designers. “We are targeting to increase this number to 1000+ partners by Q1 of 2017 and also looking to double our revenue,” informed Hetamsaria.
To achieve the same, the company regularly updates and manages their merchandise on its store. Besides this, the e-tailer has a dedicated seller app which is extremely user-friendly, where brand partners have full control of managing their inventory and pricing. The company is actively marketing their e-store on various media platforms and collaborate with various marketing campaigns that are being run for its customers.
Also, the company is looking to raise more funds to fuel up the growth. “We will raise more funds sometime next year to further fuel our growth with a goal of reaching profitability. We look for investors with global aspirations, who believe in building long-term profitable businesses,” added Hetamsaria.
VelvetCase.com aims to be an enabler and growth facilitator in the largely traditional Jewellery market. The company is building a platform which can enable both sellers and buyers to engage in a transparent and fulfilling exchange. “In order to make this vision a success we have invested and will continue to invest in our technology; making it simple, fun and yet extremely effective jewellery buying and selling platform. Apart from technology we fund our marketing efforts very judiciously with the recent investments,” highlights Hetamsaria.
Speaking on purchasing trends in this category he informed, “We are seeing a lot of growth in the Silver Jewellery market, especially Silver Swarovski Jewellery. Artisanal Jewellery like Temple Jewellery or Tarakasi Jewellery is also now coming into the mainstream with an online platform like ours, which will continue to grow in 2017 as well.”
Going further he added that Innovative & multi-purpose modular jewellery and unique customised jewellery are also going to be big trends in 2017, along with the Solitaire Jewellery. The company is seeing growth in trends like wish-lists, social sharing and referral driven purchases on our platform and in general largely across the online jewellery vertical as well.
Also, highlighting the post demonetisation effects, he said, “With demonetization, online payments will definitely grow in 2017, as we are seeing in our platform already. Also, “Cash on delivery” will make way for “Card on delivery” capability by the logistics partners in 2017.”
Headquartered in Mumbai, Velvetcase.com was established in November 2012 by Kapil Hetamsaria and Runit Shah.