The gifting market in India was pegged at $30 billion of which $400 million could be attributed to the digital space. When segregated into three categories, the share of festival gifting stands at $7.5 billion, personal gifting accounts for $20 billion and corporate gifting is at $2.5 billion.
According to Technopak, one of India’s leading management consultants, the total size of Indian corporate and personal gifting market put together in 2017 is about Rs.250,000 crore. Of this, corporate gifting market in India is estimated to be Rs.12, 000 crore and is growing at over 200% per annum.
Gifting in India can be split into 3 broad categories – Festival Gifting ($7.5billion), Personal Gifting ($20billion) and Corporate Gifting ($2.5billion).
The evolution of the Indian customer has played a key role in bringing about this change, as this customer has both the willingness and the ability to pay for innovative products.
The surge in economic growth, rising disposable incomes and aspirations, increasing exposure to global trends, and long distance gifting are some of the factors that have contributed to bring about this shift towards premium upgrades.
Here is the list of reasons, due to which the gifting market is flourishing in India:
1. Gifting Potential of Indian Customers:
Money can buy you anything but not relationship with the other individual.
Indians are known for being emotionally high, who would go to any limit to keep their relationship with their relatives, friends, family members and their dear ones. Gifting market got its blood from this very nerve thread, which is quite sensitive among Indians.
Moreover people hardly plan budget for the gifts like other things, which is why the celebrations lie on the heavier side of the scale, where money lies on the other end.
Moreover India is a country, where celebration and occasions run throughout the year and for every occasion and celebration, there are specific things to gift for, take for example Raksha Bandhan gifts will not go with Diwali gifts.
2. Endless Option:
E-commerce, online shopping, sales, and offers rain throughout the year and serve people will endless options to gift each other. There is no such restriction as one can only gift flowers or cakes or chocolates.
There is a vast sea of options lie ahead, when one comes to fix a thing to gift anyone. There are specific gift shops and startups, which are coming up with different creative and innovative options for the one who love gifting souvenirs.
Moreover gifting is not restricted to be shared among family members, office colleagues also help gifting market to grow. Brands and banks give gift coupons and help these gift stores and small budding companies, opportunity to get in market and run their business.
There is no doubt that there are a lot of stores or business thriving on gift products, but they do realize their importance in their customers’ lives. They work equally hard to carry the responsibilities with utmost respect towards the profession and do full justice to their profession, because they know what risk they are taking and what they are dealing with.
If someone has placed an order of flower bouquet or cake or box of chocolate for someone’s birthday surprise, the gift company has to deliver it on time or else the gift loses its value and the company loses its customer for one silly mistake.
These companies make sure to fulfill their commitments, which is one of the reasons they are flourishing.
4. Personalized Gifts:
There is a huge demand of personalized gifts, as it gives the sender a feel of being directly involved in giving it a personal touch, rather than being decided by the gift companies. It also emotionally binds the customer of both ends with the company for making their occasion memorable.
Gift market has also given a platform to the artists in flaunting their work and talent, through this, which is why following the passion has become this new age slogan, hummed by the youth.