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Start ups 2015-12-17

Why should startups tap the gifting market?

Certainly, floral and gifting market has a tremendous potential. It’s a business that delivers infinite pleasure to the recipient, giver & seller. There's also a respectable profit potential. The market potential for online flowers & gifts is tremendous a

By Senior Copy Editor
Why should startups tap the gifting market?

This business doesn’t require a huge startup capital--many floral & gifting businesses were started with just a few lakhs. What it does require is considerate planning, homework and dedication. If the planning & homework part is done via franchising, one only needs to put in dedication to be a successful entrepreneur.  

Floral and gifting market is fast gaining ground in India with more and more people starting the same business. The e-commerce market has helped the franchise floral and gifting sector grow by leaps and bounds.

As per market estimates, gifting market in India is estimated to be at around $30 billion and around $400 million of it is online. The gifting sector is divided into three broad categories – Festival Gifting ($7.5billion), Personal Gifting ($20billion) and Corporate Gifting ($2.5billion).

“Currently, online flower gifting market is around Rs 125 crore and if we combine flower and cakes gifting it will be around Rs 200 cr. In gifting space, the numbers can be anybody’s guess as the industry is varied, anything can be gifted under the sun,” comments Pawan Gadia, CEO, Online & Retail, Ferns N Petals.   

Manisha Agarwal, Retail Head, Presto Wonders, feels, “Gifting industry is growing wonderfully but as a brand we need to keep innovating to stay ahead in the market. Thus, our research and development team keeps working on it and we continue to innovate.”

Online sales is a happy dose for customers & franchisees both

Though floral and gifting brands get their most of the business from the offline space at present, but they have seen a steep increase in the number of people buying online. The business share for e-com gifting may be less now but it is bound to grow more in the near future. That is why the brands have refurbished their websites so that people can buy their favourite items sitting at home or office with nearby franchise outlet delivering the same.

“We get 90% of the total online business through our own website while all other retailers put together contribute to only 3% of our online space. Ferns N Petals started with the concept of online flower retail. After sensing the emerging rage of the concept of buying online back in 2002, our online portal was started. We have now developed FNP mobile app too. We help our business partners by transferring business generated through our website as around 25% online orders contribute to our business of retail and franchise,” Gadia shares with Franchise India.

Manisha too feels online gifting is doing great but agrees it is no way going to harm the retailers as perceived sometimes. “Yes, online trade is growing and helping us in business. But, it will take more years for e-com to play a very major role in the business. At present, we retail online exclusively through our own website,” she adds.

Growing the network

Presto is looking forward to open 500 outlets in India and 10 overseas by 2020. For the coming year, it hopes to open 50 franchise and 20 to 25 company-owned centres. FNP to is opening six outlets per month and plans to set up 500 outlets in the next three years. After expanding in the UAE and Kathmandu, it has set its sights on the Philippines and a couple of APAC countries.

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