In a recent report, it has been revealed that 90% of purchase decisions are emotion-driven. And festive period is when positive emotions are on the high side. Read on...
The Indian culture embraces togetherness of people in lot many ways. People invest so much time and efforts in nurturing a relationship, be it a relationship with friends, family, life-partner or even corporate relationships! The very emotion that fuels people to foster these relationships makes them spend money in buying precious gifts for their loved ones. And with festive period around the corner, gifting becomes imperative.
In a recent report, it has been revealed that 90% of purchase decisions are emotion-driven. And festive period is when positive emotions are on the high side; hence people buy gifts for their loved ones the most. Hence, the gifting industry in India witnesses high demand during festivals.
Gifting Market Overview
The gifting market in India was pegged at $30 billion of which $400 million could be attributed to the digital space. When classified into three categories, the festival gifting puts the share of $7.5 billion, personal gifting accounts for $20 billion and corporate gifting shares $2.5 billion. Evidently, the festival gifting contributes a great share to the industry’s growth.
India is a diverse country where religions and cultures survive together quite harmoniously and people share their festivals and rituals together. Many festivals like Raksha Bandhan, Eid-Ul-Fitr, Diwali etc have rituals of gifting each others. With so many festivals, gifting businesses are burgeoning in India.
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 are some of the reasons why gifting businesses and franchises are flourishing in India.
Gifting Potential of Customers
The gifting potential of Indian consumers is quite high. Indians are known for being emotionally high and they value their relationships, families and dear ones. And when it comes to gifting, the celebrations lie on the heavier side, hence people make a larger budget for gifts. Also, in India, celebrations and festivals run throughout the year, so there is a great potential for gifting business in India.
Endless options with online and offline channels
With so many online and offline portals emerging for gifting purposes, there is an endless list of options for the customers. Also, the offers and sales that run throughout the festive season as a marketing technique bring a lot of traffic for the gifting sites and franchises. 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 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.