Online Jewelry Sales in India Expected to Grow

Although it has taken some time, Indians are getting used to the idea of online shopping. This is good news for Indian online jewelry retailers who, according to the India Times, have seen online sales in 2005-06, reach $9.55 million.

Still, this is just the beginning. KPMG reported that it expects online jewelry sales to grow by 15 to 18 percent in 2006-07. This expectation was published in a report by the Gems and Jewellery Export Promotion Council (GJEPC) last week.

Aagam Sanghvi, a director at DTC Sightholder Sanghvi Exports, said the company is considering creating a website for their consumers who want to buy their jewelry online. “We are looking at creating linkages between Internet service providers, courier companies and to promote e-business, which has started growing of-late,” Sanghvi said.

According to KPMG’s findings, online jewelry sales accounted for 4 percent of all web-based transactions in India. In the U.S., online retail sales, the world’s largest market for jewelry, grew 26 percent reaching $23.11 billion. In China, online sales grew by 29.5 percent this past year.

The report states that India and China together will emerge as a market equivalent to the U.S. market by 2015, although India's share of the diamond manufacturing industry pie is expected to fall from 57 percent to approximately 49 percent (in value terms) by 2015.