The Electronic Retailing Association

Article: Retail Paradise India - Opportunities and Challenges by Manuj Goyal

Indology is India's Largest Curated Jewellery & Style Destination

In India, Teleshopping is highly dynamic in a very diverse market.

What are the secrets of success?

The Indian market is an incredibly interesting, young and highly diverse market with 400 million of 1.3 billion Indians born in the 21st century. The average age of an Indian is 29 years where over 50% of the population is below 25 years and over 65% are under 35 years of age. For context, in China, the average age is 37 years and in Japan, 48 years.

Manuj Goyal, Co-Founder and Managing Director of Indology, India's First Live Jewellery Shopping TV Channel formerly known as Gemporia.

Manuj Goyal, Co-founder and Managing Director of India's First Live Jewellery Shopping TV Channel in 2015, brought the leading British brand Gemporia to Jaipur. Gemporia makes affordable genuine jewellery accessible to women via national television, web and mobile app. Adding Lifestyle & Home products to the mix, Gemporia is now Indology in India.

Under his direction, Pinkcity Jewel House P. Ltd. produces high-quality jewellery for major brands and large format retailers in the U.S. and Europe. Manuj, being past president of TiE Rajasthan and co-founder of Rajasthan Angels Investment Network, actively mentors startups.

Until a few years ago, there was almost guilt associated with the idea of consumption in India. Consumption was restrained, these were legacies of the era of socialism and the mixed economy. Liberalisation in the '90s brought in a new idea of not just economy but also opportunity, progress and consumption.

The consumers of today and tomorrow

The young Indians are bereft of the baggage of the past. They are born in a much more prosperous, free and technologically savvy era. They are also the consumers of tomorrow. Studies say that over a lifetime, an Indian born in the 2000s will consume 13 times as much as an Indian born in the 1960s. Today's consumers are much more aware of global trends, want more choices and convenience, and are willing to explore a lot more different things1.

Consumer Spend

India is the world's fifth-largest global destination in the retail space and the consumer spend is expected to reach nearly US$ 3.6 trillion by 2020 from US$ 1.8 trillion in 2017. Consumers know exactly what they want and technology has become essential to existence. It is projected by 2021, that Ecommerce Retail will be 7% of this pie, with Organised Retail 18% and Traditional Retail 75%. India's retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18 million) in 20182

E-commerce Spend by Category

Increased TV viewership and consumption

Since 2016, TV viewership in India has shot up by 12%, according to the Broadcast Audience Research Council (BARC)'s Broadcast India survey. This indicates that despite the proliferation of smartphones and cheap data, which have fuelled the rise of OTT platforms like Hotstar and Netflix, Indians remain invested in television sets.

"India is a country driven by family viewing and this shows in the increase in the number of TV households," Partho Dasgupta, CEO of BARC India, said in a statement3.

Urban and Rural India

In 2018, there was a 7.5% increase in the number of TV-owning houses going up to 197 million from 183 million, of the total 300 million-odd households. 836 million viewers are consuming television in the country. Of these about 109 million rural homes spend about 3 hours 27 mins of avg viewing time per day and 99 million urban homes spend 4 hours 6 mins per day3.

The entire DTH market has a total of 67.56 million active payers while, the top video streaming platform, Hotstar, has 60 million users3.

Social Media

Social Media

Advertising on Social Media comes easy and at a much lower cost reaching out to the audiences that matter. Facebook is the biggest catalyst with over 300 million active monthly users in the country as compared to 75 million on Instagram, 54 million on LinkedIn and 7.65 million on Twitter with >70% male population across all platforms. The total annual amount spent on Consumer e-commerce categories is headed by the Travel Industry with a whopping US$ 16.36 billion, followed by Fashion & Beauty at US$ 7.86 billion, Electronics & Physical Media at US$ 5.96 billion with the highest annual growth of 27% in Fashion & Beauty4.

...what hasn't changed is the fact that TV remains the most effective platform for both content creators and advertisers to reach their audiences.

Television still accounts for the largest share (45%) of annual advertising revenue3.

Key Teleshopping Players

The key teleshopping players in the country are Naaptol, EZMall, HomeShop18 and Indology. A diverse market and the dynamism of television can prove to be both a boon as well as a challenge. The product, more than most times, overlaps with the e-commerce giants like Amazon and Flipkart and to keep the prices competitive is a challenge with the medium’s cost at extreme ends for both – unbelievably low on the internet and bulky carriage fee for television.

Market Challenges in India

Indian Market Challenges

The high cost of logistics, chasing impossible price points, together with the absence of any Product Regulatory Policy, results in compromised durability of the product. Unfortunately, this turns into a vicious circle and the medium, in turn, lacks credibility. Even though the country has progressed to fluent usage of the internet, payments via cash are highly popular. Consumers prefer to pay Cash On Delivery, irrespective of possessions of Credit/ Debit Cards. This gets topped by a High Return Rate.

Battling all these challenges can be a humungous task, and the secrets of coping can be deciphered by copious amounts of hard work and constant remodelling of the strategies. What works is newness. The consumer can be tempted once but to keep them coming back requires a combination of content-rich storytelling and creating a niche in the product offering.

Ethnic product leveraging cultural diversity

Indology is leveraging Indian Culture

At Indology, we've carved a path towards leveraging what comes most naturally to India – the culture. We are focused on direct sourcing of exclusive ethnic products that heavily imbibes the country's cultural diversity. A product that showcases a high perceived value, great quality, complete transparency in the narrative, almost always works. The grand story of Artistry and Provenance is unique to every region of the country. We’ve been able to bring out captivating stories that when matched with impulse, incomparable price-points, have created historical moments on the screen.

FOMO of Live Deals

Magic of the Live Deal

The final strand is the magic of the Live Deal. When a deal goes live either for a finite number of pieces or for a limited time, it creates a major FOMO (Fear Of Missing Out) amongst the viewers where they feel that they will lose something if they don't secure the deal. It's an honest situation that works wonderfully for sales. The number of viewers at any given time is way higher than the quantity of the product available and someone, somewhere, loves it too much to not buy it at that moment.

Sources:

  1. https://www.thehindubusinessline.com/specials/businessline-25/retail-is-being-reborn-kishorebiyani/article26105374.ece#
  2. https://www.ibef.org/industry/retail-india.aspx
  3. https://qz.com/india/1341882/tv-viewership-rising-in-india-despite-netflix-hotstar
  4. https://datareportal.com/reports/digital-2019-india

Indology is India's Largest Curated Jewellery & Style Destination. Indology's vast range includes over 9000 designs of carefully curated jewellery, clothing, shoes, bags, accessories, beauty and wellness, living, bath accessories, textiles, kitchen products. Every product at Indology is made keeping in mind a solid story of the part of the country it comes from and the story of the artistry that is going in the product. 'Indology’ is the study of Indian History, Literature, Philosophy and Culture, studied by some of the greatest academics of the world. The story of Indian artistry is deep-rooted and the expanse of our rich history contains a myriad of cultures. With the Lifestyle & Home products coming in, our universe has expanded from being TV's jewellery experts to being able to offer an array of style to our customers.