The gifting industry in India has witnessed a massive growth over the past decade due to rising income levels and aspirations. The global gifting market is estimated to be USD 475 billion, and India is expected to emerge as one of the strongest contributors by 2024. A recent research report by Qwikcilver revealed that the country is set to touch USD 84 billion by 2024 from USD 65 million at present.
The gifting market is segmented into two parts, ie; corporate gifting and personal gifting, with the former making up the significant share of covering 80% of the overall market share. The advent of a digital economy and increased per capita income of the millennials is disrupting the overall growth of the gifting market in India further giving customers ease and satisfaction making online shopping viable.
The evolution of the Indian customer has played a key role in bringing about this revolution, as the customers have both the willingness and the ability to pay for unconventional gifting options. Factors like creative packaging, personalised note, initials engraved boxes etc render all together a seamless experience showing an extra effort emphasised on showing care, thankfulness and gratitude.
Some of the driving factors which contributes in the evolution of personalised gifting market in India are:
Increase in Purchasing power of the millennials: Increase in purchasing power has further contributed in changing consumer buying behaviour. Affluent lifestyle and recent buying needs of the aspirants have resulted in a massive shift in the consumer buying behaviour off lately. People today are moving from traditional gifting options like edibles and greeting cards and are moving towards unique and unconventional customised gifting ideas which further transform a gift into a symbol or token of a personal bond.
Influence of western culture: This is one of the most significant factors contributing to the growth of personalised gifting market in India. Bigger players of the market and MNCs have brought in the concept of corporate gifting for their employees during festivals like Diwali, Christmas or New Years. Also, topical events like Mother’s Day, Father’s Day, Thanksgiving Day etc. have given an enormous boom to the overall personalised gifting market in India. Today, customers are open to wide options of gifting ideas both through online and offline retail which delivers great value capturing eternal bond and moments through a customised gift token.
Booming e-commerce industry: India over a decade have noticed an enormous boost of the online shopping experience in India. The advent of digitalisation, deeper internet penetration and efficient and smooth functioning of logistics have contributed to the growth of e-commerce industry in India. Today, customers are open to broader options online, even customers from Tier 2 & Tier 3 cities are contributing in the overall growth. E-commerce offers great value to their customers in a time efficient way at the best price.
Unconventional approach by retail brands: Today in this era of rapid competition, each brand is striving hard to gain recall value of their target customers. They constantly plan and strategies to come up with interesting and engaging concepts for customers along with exciting deals and offers to lure customers. Off-lately it has been observed that brands and designers are even using social media platforms likes Instagram and Facebook to showcase their unconventional work aesthetics to their consumers.
The future of personalised gifting market in India is bright and will expect an upward swing as India is among the top emerging nations contributing to the growth of global gifting market space. The emergence of advanced technology and enhanced and secured payment structure are also contributing to the rapid growth to a great extent.
The article has been penned down by Sumit Chhabra, CEO & Founder, MyFlowerTree.com