Luxury jewellery brands tap into wider market with lower prices online

Makers of luxury jewellery are building a presence online and bringing more customers into the brands’ fold with products at lower prices than their offers at shops. 

In August, fashion designer Sabyasachi Mukherjee tied up with ecommerce platform Tata CLiQ Luxury to launch a digital boutique on the platform. Featuring 79 pieces, the collection starts from ₹55,000, going up to ₹9 lakh. The brand’s “Classic Ashrafi Necklace”, priced at ₹55,000, was among the first to sell on the platform. 

“Our pricing is grounded,” Mukherjee said at the launch, adding, “We talk a lot about price, less often about value. When you give people integrity and excellence, they begin to see the difference”. 

Sabyasachi Calcutta is not the only brand doing this. Forevermark, from the De Beers group, having opened its first store in New Delhi last week, is building an online presence. With products priced between ₹1 lakh and ₹1.5 lakh and online collections starting below ₹50,000, Forevermark is positioning itself as an “affordable luxury” brand, said Shweta Harit, chief executive officer, Forevermark, and global senior vice-president, De Beers group. 

Experts say offering low prices online is a good way of expanding a brand’s ambit. “Online shopping is more impulsive than when one steps into a store. The hope is that they will eventually move on to higher-priced items,” said an analyst. 

This also helps attract a younger customer base, analysts said. “Building an online presence with lower-priced items provides room for trial and that is an attractive offer for young customers who have high disposable incomes and are more open to spending money online,” said Abheek Singhi, managing director and senior partner, Boston Consulting Group. 

This is particularly true for Tata CLiQ Luxury, where brands like Bvlgari have unveiled their online stores. “Almost 55 per cent of India’s population is on the internet, and around 65 per cent of the population is aged less than 35. Because of this exposure to social-media platforms, these users have entered the world of brands and luxury. For this group, the price point of luxury starts at ₹60,000-70,000 and goes up to ₹2-5 lakh,” Gopal Asthana, chief executive officer, Tata CLiQ Luxury, had told Business Standard earlier. 

But the gap between the online and offline customer is closing fast. 

“We see less difference between our online and offline customers than we did even a year ago. These two segments are converging. The same customer in different moments and with different needs moves between the two channels seamlessly,” Laura Burdese, deputy chief executive officer, Bvlgari, told Business Standard.

 

Strategic sparkle

  Sabyasachi: Has tied up with Tata CLiQ Luxury to launch a digital boutique

Forevermark: Is positioning itself as an “affordable luxury” brand as it expands online presence