7th Feb, 2008

Online jewellery auctions hold promise
Bangalore, Feb. 7 Saffronart, which promotes contemporary Indian art and conducts art auctions online, sees great interest in jewellery in the auctions space.

Sensing promise in online jewellery auctions, Saffronart recently forayed into this space with a charity jewellery auction sponsored by De Beers and it plans to follow it up with more auctions. From a purely business perspective, the medium offers lot of benefits for jewellers and designers alike, says Ms Minal Vazirani, Co-founder, Saffronart, a Mumbai-based organisation.

'An online auction allows a jeweller to reach out to a wider audience compared to a physical auction or private gallery/store sale. Typically in an online auction, there are 500 active bidders vis-'-vis only 50-70 in a physical auction. Online auctions provide a public fair market when you may have multiple buyers; they create both a primary and secondary market (for resale),' she says.

The online auction provides a platform for jewellers and designers to innovate and sell special and high-end pieces. 'It lends value to creativity and innovation. Rare pieces find a niche market here,' says Ms Vazirani. She hopes jewellers will soon appreciate this long-term benefit and utilise this medium.

transparent system
From a consumer point of view, this is a highly transparent system. 'With the bidding history available online, bidders can make more informed decisions. It's a transparent system and one can sense the level of market interest. It builds on the market value attributable to creativity and innovation,' says Ms Vazirani. Besides, it creates pricing benchmarks and market-driven values.

But can jewellery auctions online replace the physical advantages of touch and feel that one gets in a retail environment, especially since it involves big ticket purchases?

This issue is similar to buying art through online auctions. These auctions are targeted at a very discerning buyer who knows what he or she is buying - despite the lack of the touch-and-feel experience, explains Ms Vazirani.

high-end jewellery
Saffronart plans to hold an auction of high-end jewellery in autumn this year. Both international and domestic designers and jewellers have expressed interest in participating in the auction. Target consumers include both existing client base and new clients, i.e. collectors of art and jewellery both inside and outside the country.

Swetha Kannan

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