The stars have certainly aligned for online jewellery retailers Bluestone. The ecommerce company has managed to close in on the competition with Caratlane.
Good news in the form os sales
Caratlane saw an increase in net sales of about 9.5% that is Rs.131.8 crore in 2015-16 compared to its previous year’s Rs.120.4 crore. Bluestone managed to make net sales of Rs.100.4 crore from its previous Rs. 58.4 crore. Based on Registrar of Companies (RoC) filings this is a 72% jump in annual sales. And, on account of this, the online jeweller narrowed the gap with Caratlane by around Rs.31 crore.
“We witnessed good sales momentum through the year with sharp spikes during Akshaya Tritiya, Dhanteras and Diwali. We also received $30 million (Rs 200 crore) in our Series D round, the purpose of which was to expand operations and grow our design offerings. We will be profitable in 2018,” said the Bluestone chief operating officer, Arvind Singhal in an email.
In November last year, the etailer joined Myntra to offer a fine variety of gold and diamond jewellery. The idea behind this move was to reach new consumers who are interested in the kind of products they sell. Singhal claimed that Myntra has a fine platform that attracts design savvy consumers and felt that partnering with them would be mutually beneficial.
Despite the celebration of higher revenue, losses still prevail for both competitors. According to filings with the RoC, from losses of Rs.43 crore, Caratlane.com increased its net loss to Rs.62.8 crore in 2015-16 due to the 15% rise in expenditure.
For Bluestone, the expenses rose by 69%. This gave result to a net loss of Rs.70.5 crore last year from its Rs.42.8 crore losses in the year previous to that.
Potential for profitability
Jewellery being a high-value category has proved to sell phenomenally. The online jewellery market is expected to grow up to $3.6 billion i.e 20% of the global market, in the next couple of years. There are major factors contributing to this segment’s growth and it has investors enthusiastic about investing here. Not so long ago, Bluestone obtained Rs. 200 crore from investors and Caratlane received approximately Rs.357 crore when Titan acquired 62% of its stake.