Emerging Trends In Online Gifting Industry In India

Team StartupcityThe e-commerce landscape in India is going through an exponential growth during the past decade onwards; this is especially true in the case of the online gifting industry. The global gifting market is estimated to be around 475 billion dollars, with India having significant contribution in the global market share. According to one research report published by Qwikilver, India has a contribution of around 65 Million US Dollar at present and it is expected to increase up to 84 billion USD by the year 2024. The online gifting sector has evolved as one of the leading contributors to the e-commerce space in India.

There are many factors which have contributed to the increasing trend in online gifting industry in India. The surge in economic growth, rising disposable incomes, aspirations, idea of long distance/overseas gifting and exposure to global trends are some of the primary reasons which has contributed to the growth of online gifting industry in India. Other contributory factors include- evolution and advancement in digital technologies, application of AI driven technologies and machine learning. A large number of Indian customers are technically adept and prefer to receive services which are both convenient and economically viable. Change in personal buying behaviours and increasing purchasing power of the Millennia's is contributing to the growth of online gifting market in India. A customer is always very busy in today's fast paced modern life, therefore the prospect of gifting items being delivered at home is also an important reason as to why people are preferring online gifting stores.
A personalised gift is usually brought for loved ones, on the occasion of special days, and it contains affection and emotions wrapped in it. The multitude of options available in an online market far exceeds that of retail stores. It is precisely because of this reason that Online gifting industry is booming in India. Apart from a range of innovative products, brands have also started to use attractive packaging for their products to appeal to the customers.

Change in personal buying behaviours and increasing purchasing power of the Millennia's is contributing to the growth of online gifting market

The online gifting market in India can be divided into three segments of festive gifting, personal gifting and corporate gifting. Among the three categories corporate gifting dominates the market shares accounting to up to 80% of the total share, with consumer gifting (festive and personal) contributing the remaining 20% of the market share. Another important category that is dominating the online gifting market in India is the gift -card. The global gift card market which is expected to increase to 690 billion dollars in the next five years with India predicted to be contributing more than 10% of the market share alone. However, personal gifting is on the rise as a large number occasions are being tallied which not only includes Anniversary but also other personal occasions such as Birthday's, Father's day , Mother's days and many such occasions of personal celebrations. For instance Flower aura ­ considered to be India's largest online gift portal has a wide range of unique gifts to offer (flowers, cakes, and personalised combo of sweets). They also introduce sweets, chocolates and gift cards according to the seasons and festivals of the time. Even e-commerce retail giants such as Flipkart, Amazon, and Snapdeal are increasingly investing its share in the Online gifting market. Those companies which will give importance to their supply chain during the festivity period will reap exponentially high income during the times of festivities.

The online gifting industry in India is witnessing the rise of many young entrepreneurs and new players which is diversifying the whole sector like never seen before. In the long run this market space is destined to generate huge chunks of income for the newcomers in particular and to the Indian economy in general. Over the next decade the online gifting industry will become more organized. Change in gifts and gifting styles are subject to a continuous chain of changes every decade and it is the online gifting industry which will pounce on this opportunity before anyone else as they are much more flexible and adaptable in responding to the needs of the customer than retail stores.