India has proven to be the fastest-growing market for the e-commerce sector, it is expected to grow to $200 billion by 2026. Propelled by online digital transformation, increasing internet services, and smartphone penetration, the market has witnessed tremendous growth.
From gifting plants for charm and luck to gifting gestures and video calls with celebrities, the industry has escalated to a whole new level while simultaneously increasing people’s expectations.
The online gifting industry is one of the contributors to the growth of the Indian e-commerce space and is set to take a larger pie in the overall market in the coming future. Long-term growth perspectives for India’s online gifting market remain robust, despite the infinite prospects of disaster that the pandemic has rung in. It has been observed that the market in the last five years has been more organized and is tending to pace its momentum at a significant rate. The gifting market is broadly categorized into festive, personal, and corporate gifting. Corporate gifting enjoys the lion's share of the market, accounting for 80 percent, with consumer gifting contributing to 20 percent.
Leading driving forces of this industry would include leading brands that indulge in increasing marketing procedures, coupled with the personalization and customization of gift products. Creative packaging, personalized notes, boxes with special engravings all make the gifting experience closer and more intimate, which, of course, contribute to a seamless buying experience, thus significantly boosting the gifting market of the country.
The gifting category is expanding as COVID has churned the wheel of growth for the industry. During pre-Covid times one was limited to the gifts he/ she could buy from the nearby store or the web stores one was comfortable in buying from. But now after almost one and a half years of not freely visiting the market, people have tapped into the net to explore newer and lesser-known web stores and categories to buy online. People have started to shop online more often now and that too in every category, be it essential or luxury.
To attract more customers and cater to the masses today every online seller is taking their game to the next level, be it product packaging, customer experience, logistics support, web store look and feel, and even their social media feeds. The barriers to entry have been at ease but for every new online reseller that gets even some level of success, there are hundreds if not thousands who are giving up hope as they find it a daunting task to bring customers to their online store.
Looking at the current trends the demands are expected to rise from tier II, tier III cities, and even smaller towns that will have a lot to offer. The market has become more comprehensive now in comparison to how it was a decade ago. The industry is witnessing the emergence of several online players which is diversifying the whole sector. It also marks a beginning to an eventful journey and it is expected to have a positive impact on the landscape of the online gifting market in the e-commerce ecosystem.