Gifting Industry Set to Boom in India
Gone are the days when only birthdays, anniversaries and festivals were the occasions which people used to eagerly wait for, to shower their loved ones with surprises and gifts. Times have changed and so have the gifts and gifting styles.
Whether it is a personal occasion, corporate celebration, a festival, a baby shower, Valentine’s Day or KarvaChauth, gifting has become a way to express one’s love and also one’s individual identity. A sleek package with a sophisticated gift delivered on time helps the sender assert his/her own style-conscious yet affable personality. And this is precisely why online gifting platforms are fast becoming a way of life. Gifting market in India is estimated at $30 billion of which only around $400million is online. It is split into 3 broad categories – Festival Gifting ($7.5billion), Personal Gifting ($20billion) and Corporate Gifting ($2.5billion)
Growing online gifting
Online gift portals have become a kind of one-stop-shop to find gifts of all kinds. Browsing through a variety of heart-warming options on one platform, making a quick purchase with the click of a button and getting the gift delivered on the same day are just some of the reasons why online gifting has won so many hearts. Moreover, such portals are quite flexible with their delivery mechanism. Want the product to be delivered on a specific date, specific day or at midnight? Fret not.
All or any of these are possible to show your loved one how much you care and how well you planned the gift delivery. Bangalore, Hyderabad, NCR, Mumbai, etc – reason being that these cities have a lot of immigrant working population – i.e. people who have come from other states to work here. And therefore, they have a lot of friends & family back home, to whom these people like to send gifts. And online gifting is an ideal solution for them to send high quality & timely gifts.
The phenomenal economic development of the country, rising income levels and exposure to international trends has changed the face of the Indian gifting sector. The well-heeled and well-travelled are always on the lookout for ‘something more’. This has triggered many online gifting firms to come up with innovative and personalised collections of presents to deliver a satisfactory gift-buying experience to customer’s like Experiential gifts, Personalized gifts (You can personalize any product with a message, photo or a quotation), Several new kinds of products like Gold Plated Rose (priced under Rs 700) and so on.
Given the way online gifting is making its headway into the hearts and minds of consumers, one will probably not be surprised to know that the gifting market in India is pegged at $30billion of which only around $400million is for the digital space. When segregated into three categories, the share of festival gifting stands at $7.5billion, personal gifting accounts for $20billion and corporate gifting is at $2.5billion.
The immense potential that the industry still holds and can uncover is clear from a very rudimentary example. Research says that in India, 2, 70,000 Facebook users have birthdays every day and a whopping 2, 60,000 users have anniversaries every month. Typically, a user orders flowers or a cake for a friend from one of the online gifting portals after realising its his/her birthday through a social networking site. Therefore, just a cursory look at numbers such as these tells us that the way forward for the industry appears to be highly positive if tapped with alacrity and acumen.
Way to go
The online gifting landscape, like any other industry, of course has certain challenges to face. The promise of same day or specific day delivery, for instance, throws up logistical obstacles quite often in terms of manpower and delivery transport etc. Also, the primarily upmarket client base of this space always demands something novel in terms of gifting options. Therefore, it is imperative for portals to come up with variety that amazes and delights the buyer as well as the recipient of the gift. With new developments in the space, however, such as value-added services and global delivery systems, the industry is set to attract more customers by the day.
In a world ridden with hectic schedules and growing distances, a splendidly wrapped gift is what it takes to rejuvenate withered relations make new ones, or maintain existing ones. The demand for gifts is the reforemounting high and is sure to continue fuelling the online gifting segment significantly.