Online jewellery retailers are preparing to strengthen their presence in the international market, after undergoing a tough time in the domestic market.
They will have bigger order sizes and exclusive designs which can demand a premium price, if they increase their presence abroad.
"Nearly 25-30% of our business comes from overseas markets - the US, the UK, Canada and Australia," The Economic Times quoted Gaurav Singh Kushwaha, founder of Bluestone. "Ours is a real-time model and the shipments got delayed in August-September 2013 due to the increase in import duty on gold."
The company is targeting a revenue of ₹300 crore in the fiscal year 2015.
The shipping cost for abroad markets is about ₹6,000 for each delivery, including the extensive paperwork and logistic issues, according to the report.
Indian designs are in great demand in foreign countries but the delivery time of the product is 20-30 days due to paperwork. So easing of regulations will increase the demand abroad, according to Mithun Sacheti, CEO of Chennai-based CaratLane.com.
Indian jewellery manufacturers tried increasing their global presence last year as the domestic market went weak even during festive seasons, according to Business Standard. Gitanjali Gems, which had 105 stores in the US, was planning to launch 25 new stores this year, the report stated.
"Global markets look more promising than India due to the restrictions in gold supply imposed by the Centre. We plan to hasten our growth in global markets," Mehul Choksi, chairman and managing director of Gitanjali Gems, said.
Both online and offline jewellery shops are trying to bolster their presence in the international market to increase profitability.
"We are looking at creating an online experience for the customers to provide information and help them get a look and feel of the products available," Economic Times quoted Sandeep Kulhalli, senior vice president of Tanishq.
The Bangalore-based company is set to launch international shipping in the next quarter.
Some of the online jewellery retailers have also introduced cash-on-delivery services, which has increased its demand in the market.
