Start to get bored with usual ecommerce business? This time we will explore something extraordinary, something that maybe haven’t crossed our mind before, jewelry ecommerce industries. I’m sure I’m not the only one who wonders whether Indonesians want to buy expensive jewelry on the internet.
George Budi Sumantri, the owner of jewelry ecommerce store in Indonesia called Orori, provides those answers for you. He has made quite bold decisions as he was previously running offline jewelry business since 2003 and he completely changed his offline business into completely online business in 2012. However, high risk high gain does really work in his case. His revenue reached US$1.3 million last year and he believes that this business will develop even more in the near future.
He puts effort to disrupt the jewelry market in Indonesia by shutting down the traditional business mindset. Currently, his online jewelry store becomes the main sponsor of Jakarta Wedding Expo – the biggest wedding expo in Indonesia’s capital city. After the shutdown of Orori’s offline store, Orori no longer required to pay huge amounts of capital on accumulating in-house inventory. By streamlining his relationships with his suppliers, he could concentrate his operations entirely to Orori’s website. Surprisingly, their annual revenue grew fourfold in that year.
In addition, since the internet is basically one infinitely-large showroom for businesses, Orori could now exhibit more jewelries inside its estore than it could inside a shop. Entirely focusing on online sales also enables it to extend its services to customers outside Jakarta. Up to this moment, Orori sells various jewelry products including wedding rings, pendants, diamonds, gold bars, and gift packages.
In doing such business in Indonesia, there are indeed many factors to consider, especially the logistics. Orori handles it by cooperating with multiple payment partners in Indonesia to facilitate bank transfers and prevent credit card fraud. His estore also offers zero percent installment payments using certain credit cards. Normally, Indonesians spend about IDR 23 million (US$2,000) on Orori. Fortunately, 99 percent of all deliveries have been completed without any issues.
Recently, Sumantri planning to raise fund for US$1 million in order to develop Orori faster into an online jewelry platform. He wants to help other offline jewelry stores go online via Orori as well. Another plan in the long run is to offer more services to customers such as jewelry refining and pawning. And of course, expansion to Southeast Asian countries and India is on the next list. Orori also start anticipating the free trade agreement between ASEAN and Hong Kong next year by implementing more aggressive marketing campaigns domestically.