RedNewswire : Ratan Tata–backed BlueStone.com will be investing Rs 40 crore on marketing over the next 12 months as it looks to expand in the nascent-yet online jewelry market in India. According to reports, the fine jewelry market in India is pegged at about $60 billion, of which online market accounts for a minimal portion. This is the gap that BlueStone is trying to make the best use of.
The company also introduced new facilities like home trials and chat options for prospective buyers. BlueStone claims to be on track to quadruple revenue to Rs 1,000 crore by 2018. BlueStone.Com Chief Operating Officer Arvind Singhal, said in a statement:
“We are seeing a strong growth momentum as there is a clear shift in consumer mindset. The purchase is now towards more trendy jewelery and we are focused on introducing new designs and collections for our customers,…Over the next 12 months, we will invest Rs 40 crore towards marketing. Investments are being made on educating customers about online jewelry buying as this segment is still in its nascent stages,”
He further said the average cart size ranges between Rs 25,000 and Rs 40,000 and has less than 5 per cent return rate. Singhal also says that the company expects to become EBIDTA positive in the next 2-2.5 years. The company raised a funding of Rs 100 crore funding in July, last year. The funding round was led by Kalaari Capital and also saw participation from IvyCap Ventures, Accel Partners and Dragoneer Investment Group.
Once, a customer places an order for a particular design, it takes about three days to manufacture it at the companies Mumbai facility and up to five working days to deliver the product. Singhal said:
“We are aggressively expanding our offering and channels of reaching customers. Our home trials have seen significant growth. These result in 65 per cent conversions and the ticket sizes are about 30 per cent higher,…Right now, its about 5 per cent of our revenue. When we hit the Rs 1,000 crore revenue mark, we expect it to be about 5-8 per cent of the sales,”