Internet Investment Gold in India

Online gold market India 

India has embraced online retailing across different categories. Digital and social activity plays an increasingly important part in the purchase journey for gold. In urban India, consumers browse online/mobile apps before making purchases; they use online blogs and social media for ideas and inspiration. And mobile wallets/apps have played a key role in the growth of Internet Investment Gold (IIG) in India. 

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. In this report focuses on, 1: the growth of IIG, 2: the barriers to online gold purchase and opportunities to grow the online market & 3: how retailers are adopting a digital strategy post Covid-19. 

In the context of the report Somasundaram PR, Managing Director, India, World Gold Council (WGC) said, “Online retail adoption accelerated during Covid-19 across categories. Though relatively nascent at ~ 1-2%, online gold market in India is witnessing an enormous push from both digital players who see this as an opportunity and large jewellers who see this as necessary supplement to their brick and mortar model. 

This report points to the development of internet investment gold (referred to as digital gold in India), outlines barriers to gold buying online and attempts to highlight opportunities in a post-Covid era. In summary, there exists a large and relevant opportunity for gold jewellery retailers to improve the end-to-end jewellery purchase experience and establish the ‘loyalty loop’ with consumers.

Jewellery buying, on most occasions, is a well-planned, family decision involving months and years of savings, therefore, online experience has to reflect this long term engagement and cannot sustain as simple transactional market-place. For retailers, creating a seamless experience integrating offline and online channels will be critical to attract more consumers and differentiate between online gold buying and buying gold ETF.” 

Concluding note of the report said, although the online gold market is still in its nascent stage in India, digital and social activity plays a key role in the purchase journey. In urban India, consumers browse online/mobile apps pre-purchase and use online blogs and social media for ideas and inspiration. Mobile apps/wallets are playing a key role in the growth of Internet Investment Gold. Covid-19 has caused retailers in India to re-evaluate their brick and mortar business model and implement an enhanced digital strategy. Today, successful retailers embrace an omni-channel strategy to boost online sales.

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’. 

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!