Online gold market to see growth amid Covid-19

Kolkata: The online gold market in India accounts for just 1-2% of overall gold sales by value in the country, but its share is expected to grow following the Covid-19 outbreak as it is witnessing a massive push from both digital players who see it as an opportunity and large jewellers who see it as a necessary supplement to their bricks-and-mortar model.

A report released by the World Gold Council (WGC) on Thursday indicated this, as it noted that the pandemic has disrupted the traditional jewellery retail model. It said that despite online gold sales growth and an increasing desire among certain sections of the population to access gold through online channels, online sales account for a small proportion of total sales.

Barriers that prevent potential buyers from buying gold jewellery online include a desire to hold or touch the product, wish to acquire the product right away, returns policy worries , price concerns and lack of awareness and understanding about internet investment gold (IIG), said the report.

“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 a simple transactional marketplace,” said Somasundaram PR, managing director, India, WGC. “For retailers, creating a seamless experience integrating offline and online channels will be critical to attracting more consumers and differentiating between online gold buying and buying a gold ETF (exchange-traded fund).”