In approximately three years or less the online jewellery industry is expected to swell up to $3.6 billion. To make this happen etailers in this field are gathering funds to expand and grow their business. But, with the sales potential the online jewellery sector has shown, investors feel obliged to fund this sector.
Top ecommerce jewellers, Bluestone and Caratlane raised Rs.200 crore and Rs.357 crore not so long ago. Online jewellery marketplace, Johari Shop, is the latest to receive funding in this sector from three angel investors. The platform obtained $94,000 that is Rs.62.5 lakhs. With these new funds, Johari Shop plans to power its offline efforts.
Promoting comfort with online jewellery via omni-channel
Buying jewellery online is a big leap for offline buyers. So Johari Shop decided to go with the omni-channel strategy to include the offline experience as well to make customers more comfortable with their brand.
The CEO and co-founder of the company, Ankit Banthia, said that they will make their omni-channel strategy live by the end of February. Their first brick and mortar store is expected to be in Bangalore’s VR mall. After this, it plans on launching two more physical stores in Delhi and Mumbai. And, 7 to 11 more stores like these are in its plans for the coming year.
Johari Shop run by JewelClick Online Pvt. Ltd., announced the launch of Physital, its offline store on February 28. With a physical presence, customers can browse through their offline inventory and in case they are not satisfied they can look through the etailer’s online collection from multiple jeweller brands. The ones chosen from online will be brought to the store within 3-4 working days for the customer to inspect and try before buying.
Banthia mentioned in a statement, “Johari Shop Physital will be an important move in bridging the gap between the offline stores and the e-commerce market for precious jewellery. Since not many Indian customers are comfortable in the purchase of gold and diamond jewellery online, these digital+physical stores will be a key move in comforting the customers with all the benefits of offline stores with the vast scale of e-commerce.
Also, the top regional brands are getting a chance to have their brand presence in some other region at a very low cost. We would not be having any difficulty in expansion as the complete model is asset light and need very low investment for expansion”
What does Johari Shop have to offer?
Founded in 2015, by Ankit Banthia and Vivek Sinha, Johari shop has over 55 brands to offer the Indian consumers. These include premium brands like Gili, Sangini, Nakahstra, Thangamayil, Maya and more. There are more than 60,000 designs to choose from.
Banthia believes Johari Shop is different from the competition. He said,
“While they operate with high margins but offer fewer designs, we take a commission for every purchase and offer a wide range of brands as we are a pure marketplace.”
Online Jewellery keeps shining with more and more investments
Bnthia also stated that the company operates stores on a shared economy model with the brands it features. This should make scaling up a lot easier for them. Johari’s monthly GMV reached around Rs.60-70 lakhs., which proves yet again how attractive online jewellery is.
Other online jewellery marketplaces also received ample funding in the last few years.
- VivoCarat.com received $50,000 in seed funding last December
- Joolz raised $500,000 in its pre-series A funding round last August
- Velvetcase.com collected nearly $2 million in its second round of funding
- Melorra obtained $5 million from a venture capitalist firm this January
Besides these, the big names in online retail Flipkart, Amazon and Snapdeal are also operating in this field to earn higher revenues. This goes to show just how in demand online jewellery is in India.