UNIFIED JEWELLERY SHOPPING

Fresh from securing $1.15 million in pre-seed funding led by Kae Capital in May 2024, Eternz, the brainchild of Arthi Ramalingam, an IIM-A alumnus and a former marketing lead from B2B e-commerce start-up Udaan, is poised to revolutionise jewellery retail with an innovative marketplace model.

The jewellery industry has long been fragmented, with customers navigating a maze of brands and retailers to find perfect pieces. Eternz, under the visionary leadership of Arthi Ramalingam, is set to change this with its innovative marketplace model. This model, which offers a curated selection of fashion, silver, gold, and precious stone jewellery, provides customers with a seamless shopping experience. With the backing of investors like Kae Capital, Gemba Capital, IIMA Ventures, TDV Partners, and Venture Lab, Eternz plans to use its recent pre-seed funding to expand its presence across urban India and forge partnerships with Indian and international brands.

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EDITED EXCERPTS:

Soma Bhatta (SB): Tell us about your journey into the jewellery industry.

Arthi Ramalingam (AR): As a student, I loved wearing different fashion jewellery to complement outfits. At IIM-A (2013-2015), I was inspired to start my venture. Jewellery was the first product idea, as I noticed gaps in quality and a lack of branded players in the fashion segment back then. As a customer, I faced issues with quality, such as products turning black or stones falling off.

After graduating in 2015, I went to Hong Kong and China, meeting manufacturers, traders, brands and suppliers to understand the industry. I wanted to build a quality fashion jewellery brand for the mass premium segment to avoid quality concerns at lower prices. I started a D2C fashion jewellery brand called Eternz under the company Neons Fashion Private Limited, supported by IIM-A Maverick fellowship and start-up schemes by the Gujarat government.
Initially sold offline, the brand received positive feedback on quality.

“A typical customer’s jewellery purchase life cycle follows a predictable pattern. They start with fashion and silver before transitioning to gold as trust builds. As she moves up the value chain, she continues to explore all three categories depending on their suitability for different occasions”

– Arthi Ramalingam, Founder and CEO, Eternz

We then expanded online, tying up with Amazon. In the first month, 90 to 95 per cent of inventory sold out, giving us conviction. We expanded to 16 other e-commerce platforms. After 2.5 years, we added kids’ accessories and an Ahmedabad store, but we needed a stronger e-commerce focus. I decided to pause, learn from industry experts, and raise funds to scale further.

SB: Eternz is a novel idea for a jewellery marketplace. What market insights led to the inception of this venture?

AR: A typical customer’s jewellery purchase life cycle follows a predictable pattern. They start with fashion and silver before transitioning to gold as trust builds. As she moves up the value chain, she continues to explore all three categories depending on their suitability for different occasions. The fragmented process of visiting multiple stores and websites, lack of trust in new brands, and concerns about service and delivery prompted the idea.

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Eternz’s curation of brands across categories on one platform fills the gap and makes discovery easier by providing a seamless jewellery shopping experience. I aim to create a marketplace offering various brands, designs, and price points to cater to diverse customer preferences while addressing quality and brand positioning concerns.

SB: What has the initial market response been based on website orders? What trends are you observing on Eternz regarding offerings across different jewellery segments?

AR: We see healthy silver and fashion orders, indicating a promising start. The average order for fashion jewellery is around Rs. 1,800, and for silver, it is currently Rs. 2,000-2,500. Customers appreciate the variety, like exploring 15 styles before purchasing based on preferences. Gold orders are gradually picking up, too.

We focus on lightweight, giftable jewellery priced between Rs. 5,000 and Rs. 35,000. At Eternz, we offer a variety of materials, such as stainless steel, lab-grown diamonds, and moissanite, to cater to diverse preferences. While our current gold and lab-grown diamond offerings are limited, we plan to expand these segments.

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SB: You made a statement about curating international brands on the platform. What are your plans?

AR: Yes, there are two categories, brands like Pandora that already exist in India but lack an extensive retail presence. Our goal is to expand their footprint within the country. Secondly, we target successful global brands that consider India a lucrative growth market. We aim to introduce these brands to the Indian market. A marketplace such as ours allows such brands to widen their access.

SB: What is your marketing strategy, including branding and driving awareness?

AR: Initially, our focus will be digital and influencer marketing on platforms like Instagram, Facebook, and Google, as well as collaborating with influencers. We will leverage satisfied customers as brand advocates to stimulate organic conversations. For the next six months, we will target digital marketing in tier-one and tier-two cities through Google, Meta, and partnerships like CRED. In the long term, we will pursue offline marketing in targeted clusters like metro residential societies.

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SB: What are the main challenges you foresee in building this business?

AR: A significant challenge is ensuring the authenticity and safety of high-value products during logistics. We must address potential fraud risks, such as customers replacing genuine stones with fake ones and returning the altered product, through close collaboration with logistics partners and technology integration.

Another challenge is managing high return rates. While I do not have exact figures, the industry average return rate is around 35 per cent, specifically for jewellery priced between Rs. 100-1000. We will minimise returns by selecting quality brands, implementing virtual try-ons, enhancing product catalogues with scaled images and model shots, and considering factors like face shape and jewellery style compatibility to improve sizing context and visualisation.

“There is considerable scope for developing educational and style-oriented content to enhance customers understanding of how jewellery integrates with their wardrobes and lifestyles”

SB: What are the opportunities for enhancing the online customer buying experience in this space?

AR: There is considerable scope for developing educational and style-oriented content to enhance customers’ understanding of how jewellery integrates with their wardrobes and lifestyles. For example, as someone with a designated wardrobe for office attire, I am unsure how trendy designs I come across will complement my existing outfits. Addressing such concerns is a priority for Eternz.

Providing customer education through comprehensive content on jewellery selection, occasion styling, maintenance, and care is crucial for offering a holistic experience beyond product sales. This includes guiding customers on the best jewellery choices for specific occasions, attire, or work environments.

“Eventually, we aim to establish offline stores similar to speciality multi-brand players like Nykaa, where customers can explore a range of brands within a specific category,
such as fashion, silver, and gold”

SB: Are there existing competitors in this niche jewellery marketplace space?

AR: There are no significant competitors. One or two smaller players operate in a limited high-price segment.

SB: Do you see the progression of this digital venture into an omni-platform in future?

AR: Eventually, we aim to establish offline stores akin to speciality multi-brand players like Nykaa, where customers can explore a range of brands. When we launch multi-brand stores, we will not mix categories. Instead, we will launch speciality stores by categories, like fashion, silver, and gold. Our app, which will launch in July, will segregate shopping experiences with distinct interfaces for the fashion and gold segments to cater to their needs. Selling gold requires more expertise than selling fashion or silver.

For higher-value items, customers prefer making offline purchases despite online discovery. However, there is a growing trend of buying expensive items like solitaire rings online, provided there is trust in the certification and product details. We plan to ramp up our online presence for the next eight months and open the first offline store in a metro city within the first year.

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SB: Jewellery buyers are conditioned to expect exchange and buyback policies while buying jewellery. Does Etrenz plan to offer a standardised policy across brands or one that is brand-specific?

AR: Currently, they are brand-specific, but we plan to standardise them gradually for customer clarity. The distinction between a marketplace and a direct-to-consumer brand lies in the consistency of policies and services. To ensure appropriate policies, we will categorise brands based on their business model and customisation levels. For example, mass-market brands like CaratLane will have standard policies, while custom-order brands may have stricter policies due to the personalised nature of their products. Policies will involve discussions with brands to ensure alignment, like reconciling varying return windows.

SB: How will you facilitate returns and exchanges for suppliers or sellers?

AR: It is a platform initiative, not vendor-specific. Our tech will initially handle complexities like calculating depreciated value and crediting customers for gold exchanges. Silver and gold can be melted and reused for sustainability.

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SB: Retailers usually accept exchanges for new sales, which may pose challenges in execution. Comment.

AR: It is a problem, particularly for precious categories like gold and diamond jewellery. As a platform, we need to find incentives for brands. We will explore ways for brands to benefit from this initiative over time, ensuring alignment with their interests.

Written By Soma Bhatta