In India, where gold jewelry has long been associated with trust, tradition, and family-owned establishments, a dramatic shift is underway. The rise of e-commerce is now challenging the conventional practice of buying jewelry at brick-and-mortar stores, offering consumers a new, more convenient way to purchase fine pieces online. This burgeoning online jewelry market, which is set to reach an estimated $22 billion by 2028, is rapidly becoming a significant player in the Indian retail sector.
Traditional Jewelry Buying Habits Face Disruption
For generations, buying gold jewelry in India has typically meant a visit to a local jeweler — often a trusted family-run shop where customers could see, touch, and feel the product before making a purchase. However, as internet penetration grows and the younger generation increasingly turns to digital solutions for shopping, the jewelry sector is experiencing a paradigm shift.
According to industry experts, the Indian e-commerce market for jewelry is gaining traction at an unprecedented rate. With a projected growth trajectory of $22 billion within the next three years, the online jewelry market is positioning itself as a key competitor to the traditional jewelry retail space, which has long dominated the country’s retail landscape.
Gitanjali Gems Leads the Charge in Online Retailing
At the forefront of this transition is Gitanjali Gems Ltd., India’s largest diamond and gold jewelry retailer. Known for its traditional retail model, Gitanjali is now embracing e-commerce as a strategic priority. The company, which operates more than 4,000 sales points globally, expects its online sales to surge dramatically. Projections suggest that online channels will account for up to 20% of Gitanjali’s total sales within the next two to three years, a significant leap from the current 1%.
Mehul Choksi, chairman of Gitanjali, expressed his optimism about the shift in consumer behavior. “We have tied up with all the major online platforms and are constantly looking for more partnerships to expand our online presence,” he said. The company’s collaboration with platforms such as Amazon, Flipkart, eBay, and Jewelsouk is reflective of the growing trend of traditional jewelers embracing e-commerce as a vital component of their sales strategy.
The Role of Major E-commerce Giants in Shaping the Market
To capitalize on the increasing online shopping trend, many established jewelry brands are partnering with global e-commerce giants such as Amazon, Flipkart, and eBay. This move is also facilitated by the Indian government’s recent relaxation of gold import restrictions, which has made it easier for online retailers to access the precious metal and introduce it to the growing digital marketplace.
Gartner Inc. has estimated that the total online retail market in India will reach $6 billion this year, with projections indicating it could grow to $22 billion by 2028, according to CLSA Asia Pacific Markets. This explosive growth highlights the immense potential of online jewelry retail and indicates that it could soon become a central part of the Indian retail landscape.
Convenience and Accessibility Driving Online Jewelry Sales
While purchasing jewelry online might have seemed like an unappealing option in the past for many consumers who prefer the tactile experience of shopping in person, a shift in consumer behavior is slowly reshaping the market. Convenience is one of the key factors driving this change, with many young, tech-savvy consumers now flocking to e-commerce platforms to buy jewelry from the comfort of their homes.
Gaurav Singh Kushwaha, founder and CEO of BlueStone, one of India’s leading online jewelry stores, points out that online retailing allows consumers to browse and shop for jewelry at their own pace. “It gives consumers the freedom to take their time, evaluate their choices, and not feel pressured into making an immediate purchase,” he explained. This is particularly appealing to the millennial and Gen Z demographic, who are increasingly seeking digital shopping experiences that align with their busy lifestyles.
The flexibility of online shopping, coupled with access to a wide variety of designs and trends from across the globe, has made online jewelry retail particularly attractive to women. BlueStone estimates that the online jewelry market in India could grow to $2.5 billion over the next five to ten years, though it currently represents less than 0.1% of India’s overall $55 billion jewelry market.
The Expanding Market for Gold and Jewelry in India
India’s jewelry sector is already a major player in the global market, with the country surpassing China as the world’s largest consumer of gold. According to the World Gold Council, Indians purchased 662 metric tonnes of gold jewelry last year, worth $26.9 billion. The relaxation of gold import restrictions by the Indian government is expected to further fuel the growth of both the jewelry and bullion markets, providing more opportunities for e-commerce players to tap into the sector.
As traditional jewelry retailers make their transition online, shares of leading Indian jewelers, such as Titan Co., have seen a significant uptick, indicating growing investor confidence in the future of online jewelry sales.
Challenges in Building Trust and Consumer Confidence
Despite the rapid growth of online jewelry retail, challenges remain — especially when it comes to building trust among customers who have long relied on in-person shopping for their jewelry needs. The high value and emotional significance attached to jewelry purchases mean that consumers are often cautious about buying online.
To overcome this hurdle, companies like BlueStone are offering services that aim to build consumer trust and ease concerns about making a large purchase online. One such initiative is the “Home Try-on” service, which allows customers to have jewelry delivered to their home for a trial period, giving them the opportunity to assess the product before committing to the purchase.
Kushwaha acknowledges that trust remains a challenge in a market dominated by traditional retailers, but he believes that these services will help bridge the gap and make customers feel more comfortable shopping for jewelry online.
The Role of Established Jewelers in the E-Commerce Revolution
As online jewelry shopping becomes more popular, established retailers are looking for ways to expand their offerings without the need to hold large amounts of physical stock. Rajeev Sheth, chairman of Tara Jewels Ltd., highlighted this shift in strategy. Tara Jewels, which began selling its products on Amazon in December, is capitalizing on e-commerce by diversifying its retail channels.
The changing behavior of consumers, particularly young Indian women, is seen as the driving force behind this transition. Sheth noted that these women are increasingly turning to online platforms for their jewelry purchases, as they seek convenience, variety, and more personalized shopping experiences.
Strategic Partnerships and Long-Term Growth Plans
To further capitalize on the growing online jewelry market, New Delhi-based PC Jeweller has formed a partnership with U.S.-based online jewelry retailer Blue Nile to explore the long-term potential of online sales. The company also plans to launch its own website to offer customers the same high-end shopping experience that they would find in its physical showrooms.
Titan, the largest player in India’s jewelry market, has also made moves in the online space. The company already sells jewelry through its website and retail outlets and is reportedly considering a stake in online jewelry retailer Caratlane, signaling its intent to become a key player in India’s digital jewelry market.
Conclusion: The Future of India’s Online Jewelry Market
The Indian jewelry market is undergoing a dramatic transformation, with e-commerce emerging as a key driver of growth. While traditional jewelers face the challenge of adapting to online sales, the trend is clearly gaining momentum, with large-scale investments from both established retailers and new e-commerce players.
As more consumers turn to online platforms for their jewelry purchases, companies will need to prioritize customer trust and convenience to maintain their competitive edge. With the market expected to reach $22 billion by 2028, India’s online jewelry sector is poised for explosive growth, and it will be fascinating to see how the digital revolution reshapes the way Indians buy and experience fine jewelry.
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