KOCHI: “One lakh products, 70 per cent offer”. If you think this is a routine advertisement from any e-commerce giant, think again. This is the offer given by Josco Group, which used to run jewellery business in Kerala. The group has started an e-commerce platform, itsuroffer.com, which offers around one lakh products.
It seems business groups in Kerala go the e-commerce way to boost sales. Kalyan Jewellers has tied-up with Flipkart recently to sell jewellery online. Seafood exporter Baby Marine group has launched dailyfish.com, which takes orders only and supplies ready to cook fish at your doorstep in February. A leading media house in Kerala is promoting their three e-com ventures in a big way now. Other Kerala-based companies which are making it big in the virtual space are Brahmins Foods and Kara Ventures. On to of that Malayalam actress Kavya Madhavan launched online clothing store, Laksyah.com last year.
Reason: Kerala e-commerce market is worth Rs 1,000 crore now and is growing at a rate of 70-75 per cent. The market size was just Rs 500 crore two years ago. Giants like Amazon, Flipkart, Uber and Ola Cabs have deeper penetration in the state.
According to Indu Menon, Co-founder, Kara Ventures, which sells Thorthu (towel) online through the website, karaweaves.com, the digital space had provided her a global identity. The venture was set up at a village called Kanjiramattom in Ernakulam district and they have clients in the US, the UK, Spain, Australia and Brazil.
“We have tie-up with handloom co-operative societies and selling our products to global customers. In the e-commerce way the operational expense is minimal and now we are doing an annual sales of Rs 40-50 lakh,” she told Express.
E-commerce is the cheapest way to tap the global as well as the outside Kerala market. Hence many companies from the state will join the e-way bandwagon in the near future, opined Rajesh Nair, Associate Director - Markets, Ernst & Young.
“The e-commerce market in Kerala is growing at a rate of 70-75 per cent per year. The growth rate is more than that of metros like Bengaluru and Chennai. Customers here, especially youngsters and working professionals, prefer the e-way to shop now. These are indications which will shape the future of e-commerce market in the state,” he pointed out.
Jewellery sales through e-commerce is growing at over 70 per cent per annum and is valued at more than Rs 1,200 crore. This has prompted Kalyan Jewellers to use the marketplace of Flipkart.
“The foray into e-commerce provides Kalyan with the opportunity to target customers in the gifting segment,’ said T S Kalyanaraman, Chairman and Managing Director, Kalyan Jewellers.