If money was the only thing you thought came out of ATM machines, think again! You can now get gold and diamond as well from ATM's. Read on to learn more about unique facility with unlimited benefits
The way people shop in India is undergoing a sea change. Earlier, there was no choice, but to shop from unorganised retail stores. Emergence of organised retailers, national as well as international, has transformed the way people shop. Online retail is perhaps creating ripples, as one can shop while sitting at home. And now, buying jewellery is faster and easier, as jewellers are offering ATM machines at their stores.
Yes! You have heard it right. The Gitanjali Group, one of the first major gold and diamond jewellery houses, launched and run by modern entrepreneurs rather than dynastic jewellers, has recently introduced an innovative concept of Gold and Diamond ATM.
Till a few years ago, jewellery was generally bought from family jewellers. However, the emergence of organised retailers has brought a dramatic change in the jewellery buying behaviour of Indians. Over the years people have become brand consciousness and prefer to buy hallmarked certified jewellery.
E-commerce, where people can buy from online stores, has further boosted the jewellery shopping. Taking shopping to the next level is the concept of buying jewellery from ATM machines.
Gitanjali Group has a strong presence through a vast network of over 3,600 points of sale of self owned, franchised and retailed stores. The brand has more than 60 franchised outlets which are spread pan India. Gitanjali is also known for its wide range of well established brands in its arsenal to tap the continuously growing branded jewellery market in India. The list includes brands such as ‘Nakshatra’, ‘Gili’, ‘Asmi’, ‘D’Damas’ and others.
The article would provide an insight into this innovative business model.
Designed like an ATM, the machine will not take out money but jewellery. It will dispense gold and silver bars coins, pendants with religious motifs; as well as a range of diamond studded jewellery. This unique service is the first of its kind in the world. As shared by Sanjeev Agarwal, CEO, Gitanjali Export Corporation Ltd.: “This machine is a first of its kind anywhere in the world and will further revolutionise the processes by which precious metals and jewellery is bought. It has a particular significance in India, where usually such items are purchased as tokens to observe traditions on auspicious days.”
How gold and diamond ATM works?
Due to the novelty and uniqueness of the ATM, buyers may get confused about its working and taking its ownership. The ATM launched by Gitanjali offers consumers a mix of up to 36 options in different sizes, price points and designs to choose from across these categories. This may include coins, pendants that have religious motifs, which are suitable for auspicious occasions, as well as heart shaped pendants and even diamond studded pendants for other gifting occasions. Customers visiting these ATM’s can easily choose their product from options displayed on a touch screen, and can then make payments using either a credit / debit card or by depositing cash. Delivery will be immediate as in case of money ATM. This displays the effortless and easy handling of this machine. Additionally the ATM is sure to become popular in the future due to its multi benefits for both consumers and aspirants.
Need for gold and diamond ATM
With the inauguration of the first jewellery ATM, it can be easily predicted that it has a long way to go keeping in mind its multi benefits. Few entrepreneurs may not be sure of its success as they might feel that customers always prefer to buy jewellery after trying it. However the success of online buying proves that Indian customers are changing and are getting more aware about the latest technology and its advantages. They have recogonised the importance and the need for updated techniques of shopping. Moreover the diamond ATM can fulfill many other advantages. In words of Agarwal, “This gold and diamond ATM also offers choices for occasions like Valentine’s Day, or to a husband who forgot an anniversary or his wife’s birthday!” Therefore it can be the perfect choice for hurried shopping.
Few flaws in the concept
Though the concept is very innovative, its viability is a concern. As the number of designs are limited, people may not find what they are looking for, which will ultimately bring them to the stores. Also the price range of jewellery that can be withdrawed from the ATM machine is from Rs 1,000 to Rs 30,000 further limiting their alternatives. Moreover people who may not have the knowledge of using ATM machines are also not potential customers for this concept. This includes many house hold ladies who have never ventured into ATM’s.
Look at the future
In the coming months, Gitanjali plans to expand the network of these ATMs in places with high consumer footfalls such as premium malls, airports, temples etc. This would provide visitors with a range of last minute purchase choices for gifting and other needs. These ATM’s may have limited choice but the jewellery is original and offers more guarantee as compared with many local jewellers.
It is a wait and watch situation as people may still feel more comfortable buying at a brick and mortar store rather than buying from a machine. How well it will be received by people….time shall tell! However once this concept proves successful, franchisees will surely find a perfect opportunity to get high success.