One of the country’s largest jewellery manufacturers, the Gitanjali group is taking all its 25 brands online in a bid to boost sales of jewelry in the face of the economic slowdown. The slowdown has impacted their business and sales are down by 30-35 per cent. The Gitanjali brand line up boasts of brands like Asmi, D’damas, Nakshatra, Gili, Diya, Sangini and others and all these brands would be sold online through their own portals.
This means that over year 2009 one can expect Gitanjali to spend marketing dollars on online advertising. We have been stating in our earlier posts on how the rise of ecommerce is connected to the rise of ad spend online and this example of gitanjali jewellers trying to experiment with getting all their brands online for online sales tells a story. Incase they don’t sell much automatically their online ad spends will drop.
While on the topic of ecommerce one has to consider that payment mechanisms play a vital role in the same. The timesofmoney group recently launched Direcpay a payment gateway with many banks enrolled as well as debit card and net banking provisions. What we need is India though is a paypal like system which is still not prevalent. Though timesofmoney did try to launch Wallet365 and the same was curbed by RBI. Gitanjali for its ecommerce presence has tied up with Visa and Mastercard and several major banks and jewelry ordered shall be shipped directly to the consumer and beginning January, the group plans to deliver the products free of charge.
Portals like rediff and indiatimes have their ecommerce channels through which various merchants can sell their stuff and Gitanjali already has stores at these portals as well as in newly launched shopping at in.com.
Mehul Choksi of Gitanjali Jewellers was very upbeat about their prospects in the online space and said “We expect to capture 35 per cent of the total online jewellery sales in India by 2010.” Also by 2010, the group targets 3-5 per cent of its total sales to come through e-commerce.