Despite the uniquely unpredictable situations in the last 2 years, the year-end holiday gifting ritual has remained a constant amongst Indian shoppers. Consumers’ approach towards traditional gifting has significantly shifted, however, with 68 percent of shoppers willing to purchase gift cards that give back to causes and 91 percent intending to send gifts to people who’ve experienced hardships.
Consumers will purchase an average of 22 gift cards, the Indians are expected to spend 89 percent of their holiday gifting budget on gift cards, with fashion and health and beauty being the most popular gift card categories, as per the forecast by Global branded payments provider Blackhawk Network.
Additionally, 84 percent of Indian shoppers said they do not want to deal with the hassle of returns or exchange of gifts. Interestingly, 62 percent acknowledged that they receive at least one bad gift every year.
This changing perspective towards gifting presents a new opportunity for retailers to connect with their consumers, as both retailers and shoppers seek newer ways to navigate the challenges that the 2021 year-end holiday season has to present. The report also stated that almost 96 percent of Indian respondents want to gift digitally in the upcoming holiday season.
“In India, year-end gifting has become a big trend as it is an occasion to gift friends and family. The past year, we’ve seen a growing preference for gift cards among Indian shoppers owing to convenience, choice, and safety. Our research reveals that consumers are planning to spend more money on buying gifts this year than they did in 2020," said Theresa McEndree, Head of Global Marketing and Corporate Brand, Blackhawk Network.
"However, consumers’ preferences and priorities have notably changed. This shift has posed unique challenges for retailers and businesses to engage and delight customers. Year-end 2021 opens new windows for retailers to align their strategy to meet the expectations of shoppers,” McEndree further said.