The Online Gifting Industry: India Emerging

By Hridkamal RoyOver the past decade, the gifting industry of India has undergone massive growth owing to the rise in levels of incomes and aspirations. The value of the global market for the gifting sector has been estimated to be $475 Bn and India will emerge as one of the strongest contributors by the year of 2024. From the current value of $65 Mn, the Indian gifting industry will touch an overreaching value of $84 Bn within the next 5 years.

Personal and Corporate gifting are the two sectors that this vast gifting industry is divided into. The corporate gifting however holds 80 percent of the market shares. By providing the satisfaction and ease of online shopping, the advent of digital economy and increased per capita income has created disruption in the overall growth of the online gifting market of India.

Increased Purchasing Power

The consumer buying behaviour has been greatly influenced by the gradual increase in the purchasing power of the customer. The current merchandise needs combined by affluence in lifestyle has facilitated a gigantic shift in the buying behaviour of the customers. The tide of conventionalities have been broken and consumers today are more inclined towards unique and unconventional customised gifting ideas which have the ability to transform a simple gift into a token of bonding with a
personal touch.

The Western Influence

Influence of the western culture has been one of the driving factors which resulted in the growth of the gifting industry in India. Corporate gifting is the western trend that has made many MNCs operational in India incorporate the same in their decorum during festivals like Diwali, Christmas or the New Year’s Eve. Thanksgivings, Father’s Day, Mother’s Day among few others have also undergone boom owing to the rising popularity of personalised gifting market of the country. Customers are exposed to a wide range of gifting ideas both online and offline delivering gifts along with a personal touch through a customised gift token.

The e-commerce Boom

The online shopping industry in India has undergone massive uplift over the last decade. With the growing acceptance of digitisation, smooth and efficient functioning of logistics along with deeper internet penetration has massively influenced the growth in the e-commerce sector. The penetration has successfully scattered in the Tier 2 & Tier 3 cities where the population has access to any kind of merchandise online which will be delivered to the doorstep. The online gifting industry being a part of online shopping has evenly contributed to the e-commerce boom of the country.

Difference in the Approach of Retail Brands

With the competition growing every second, all brands are implementing new marketing techniques in order to obtain the recall value of the target audience. Engaging content about products, their elaborated specifications along with the ease of access are artistically portrayed by the companies in front of their customers. Social media platforms like Instagram, Facebook, Snapchat among many others are being widely used as influencers of unique and customised gifting products.