The adoption of digital sales channels among micro and small enterprises in the gem and jewellery industry, has increased significantly since the Covid-19 pandemic struck, according to a survey by ratings agency Crisil.
The proportion of gems and jewellery manufacturers – largely non-precious, stone-studded jewellery, imitation jewellery, and luxury fashion jewellery – embracing online selling platforms has more than quadrupled to 55% in November from 13% before the pandemic, with micro enterprises showing the biggest jump (41%, up from 13%).
The survey, conducted in November, was aimed at gauging changes in the level of usage of digital channels – including online aggregators, social media platforms and owned websites – by such entities after the pandemic.
About 60% of the respondents adopting digital selling said it helped them weather the pandemic-induced stress, while the rest said it boosted sales. These respondents were also more positive about their near-term business situation compared with those that didn’t take the digital route.
The survey covered 566 micro and small enterprises with annual turnover below Rs.25 crore. A good 45% of these were micro enterprises, or those with revenue less than Rs.5 crore. The remaining were small enterprises with revenue in the Rs.5-25 crore range.