Despite the online boom, jewellery sales remain elusive on e-commerce portals though apparel, watches and footwear continue to catch the imagination of the online customers.
Speaking at the India Fashion Forum 2016 organised by Images Retail, Sandeep Kulhalli, Vice-President – Retail & Marketing, Tanishq, Titan said, “No online jewellery business is making money. It is not very online friendly. Jewellery market is more for offline consumption than online.”
Ignoring the online format, Rishab Soni, Managing Director of SSIPL Group that has an exclusive license for Nike shoes, said, “Nike strategy is to sell in a proper hygienic manner without losing value. Though online contributes 5-7 per cent of sales, it dilutes the brand value and position.”
On the contrary, the apparel sales on e-commerce are going great guns. “Amazon will be the largest apparel retailer in US by 2020 it will reach a turnover of $60 billion followed by Macys at $25-30 billion. Watches and footwear segment will trail the apparel segment in retail,” said Sandeep Mukherjee, SAP Hybris Head, Indian Sub-continent.
Earlier, triggering the panel discussion at the forum, Abheek Singhi, Senior Partner and Director, The Boston Consulting Group, said, “Indian retailer must take cues from their global counterparts to opt the right omni-channel initiatives to ensure success over the medium to long term period.”
Citing a case study at an interactive session of India Fashion Forum 2016, Abheek Singhi said, “Amazon has outperformed its peers on the bourses over a 10-year period, but Macys a less known retailer has performed well over five year due to its right omni-channel initiatives.”
Stating that there is no offline and online world, Abheek Singhi pointed out that customers undertakes research, locates the products and store online or on his way to the store.
“Sales made in stores, but influenced by online channels,” Abheek Singhi said.
“In US and UK, eight out ten and seven out of the successful ten e-commerce players wear originally brick and mortal retailers,” Abheek Singhi said adding that Indian brick and mortar retailers must learn to engage their customers from the learnings of their US and UK retailers.