India Poised To Spend $84 Billion On Gifts This Festive Season
Festivals everywhere are seasons for exchanging gifts. Worldwide the gifting market is worth $475 billion and India is poised to make a significant dent by 2024 with a market worth $84 billion. The Indian gifting market is driven by a multitude of factors, like cultural traditions, the overall economic prosperity in India and the consequent lifestyle changes, the surge in ecommerce and the growing trend of corporate gifting.
As India's economy grows, so does its expanding middle-income group, with more disposable income in hand. This segment of consumers is driving the upsurge in the sale of premium and luxury gifting products. The gifting market can be categorised into three primary segments, festival gifting, personal gifting and corporate gifting. Corporate gifting is an expanding business as companies show their appreciation for employees and build relationships with clients through gifts and hampers during festivals. These trends have significantly elevated the demand for personalised and top-tier corporate gifting items.
Online Purchases
The emergence of ecommerce platforms has played a vital role in boosting the gifting market in India. The prevalence of online marketplaces has enabled consumers to conveniently explore and purchase a diverse array of gifts from the comfort of their homes. Online gifting has in recent years evolved into the fastest growing market trend. According to a report by TECHSCI Research, online gifting in India will reach a market size of $72.56 billion by 2029. The trend is being driven by the evolution of the Indian customer, who now has both the willingness and the ability to pay for innovative products.
According to a recent survey on Indian consumers, 33 per cent of respondents who were planning to send gifts to family or friends during the festive season this year said they were more likely to order the gift item online and have it shipped to the recipient. Another 33 per cent of respondents said they were more likely to purchase gifts locally and hand-deliver them during Diwali.
Trending
The tradition of exchanging gifts in itself is subject to trends. Once upon a time, gifts were more personal, till gift cheques and plain cash became the norm. That too is beginning to change. According to Vikaas Gutgutia, Founder and Managing Director, Ferns N Petals, “The gifting industry during the festive season has been witnessing a transformation driven by a demand for personalised and sustainable gifts. Consumers are now inclined towards thoughtful and unique presents that align with their personal preferences and values. Additionally, there is also a growing emphasis on eco-friendly and socially responsible gift choices since there is growing environmental awareness, leading to a significant role in consumers' decision-making. These trends are reshaping the festive gifting landscape, making it more dynamic, digital, and socially conscious.” Changing lifestyles have also influenced India's gifting market. With an increasing focus on health and well-being, there has been a surge in the demand for organic and health-conscious gifting options.
Up and Away
According to industry pioneers, the gifting industry shows no signs of slowing down. They believe the industry has immense growth potential and a promising future. Talking of the future of the industry, Varun Moolchandani, Executive Director, Archies Limited, says, “Gifting is future-proof, every day is someone’s birthday or anniversary. We live in India, a country which heavily values its festivals and gifting is an essential part of the festivities. With all the different days like Mother’s Day, Father’s Day, Friendship Day, gifting is never going out of style.” He points out that festivals are important in India and emphasises that if there’s something to celebrate, there will always be a culture of gifting.
Growth facilitators like ecommerce platforms are more popular now than ever before and we witness disruptive technologies like AI growing at a very fast pace. All this will influence the festive gifting market in India. Says Gutgutia, “The Indian festive gifting industry is poised for a promising future. Ecommerce will continue to be a driving force, simplifying gift selection and delivery. Personalisation and sustainability also seem to maintain their significance. Furthermore, technological advancements, including AI-driven gift recommendations, are set to elevate the industry's offerings. All in all, we can conclude that the Indian festive gifting industry is on track for substantial growth as it adapts to changing consumer preferences and embraces technological innovations.”
Obviously, market leaders have great confidence in the future of the gifting industry in India. With cultural traditions that involve presents at every celebration in life, from birth to birthdays and weddings to Diwali, Eid and Christmas, the home-grown gifting industry’s growing chunk of the worldwide market is assured.
