The age old tradition of gifting is the simplest way of expressing friendship and affection, and in some cultures it even takes on a religious context. Whether it is for something as simple as the onset of spring, a deep-rooted belief in the victory of good over evil or the celebration of a sister’s love for her brother, India is bathed in festivities all year round and surrounded by gifts and warm wishes.
However, gone are the days when only birthdays, anniversaries and festivals were occasions which people used to eagerly await, to shower their loved ones with surprises and gifts. Times have changed and so have the types of gifts and gifting styles. Personal gifting is on the rise and an ever-higher number of occasions are being added to the tally which includes Valentine’s Day, Father’s day and Mother’s day, among a long list.
The gifting market in India is estimated at around $ 30 Billion, of which only around $ 400 Million is online. The $ 30 Billion is split into 3 broad categories – personal gifting is worth $ 20 Billion, festival gifting comprises $ 7.5 Billion, and corporate gifting holds a share of $ 2.5 Billion.
Consumers today want a touch of style, uniqueness and personalisation in their gifts, to match their status. This demand has been leveraged highly by online gifting portals like giftease, giveter, indiangiftsportal, etc. and large e-commerce companies like Amazon and Flipkart. Most offline players like Ferns n Petals, Nature’s Basket, Foodhall, etc. have also started widening their online presence.
From fashion, beauty, lifestyle, décor, well-planned outdoor trips – you name them and you can spot them online. The offerings on these websites also include bakery products, assorted chocolates, confectionery, dry fruits, sweets and wine, apart from other categories.
The evolution of the Indian customer has played a key role in bringing about this change, as this customer has both the willingness and the ability to pay for innovative products. The surge in economic growth, rising disposable incomes and aspirations, increasing exposure to global trends and long distance gifting are some of the factors bringing about this shift towards premium upgrades and online gifting.
India has a rapidly growing market for home décor which is expected to reach $ 5.29 Billion. Growing at rate of 15%, the handicrafts gifting industry has also reached $ 1.9 Billion in the last decade while the houseware market is growing at a steady rate of 30 % p.a. The demand for electronics in the Indian market is projected to rise to $ 125 Billion over the next two years.
Given the general paucity of time, the role of e-commerce will gain more prominence in the future, uprooting traditional gift vendors completely. Their sale has already lowered drastically with the rise in online buying, given its huge time and cost benefits.
It’s high time such vendors save their business and expand it too, by going online and tying up with a tech platform like
Clappily.
Clappily is a party planning marketplace for merchants and consumers, available on
Android and
iOS. The app becomes a single destination for varied party needs that customers may have, gifting being an increasingly important part of the mix.
Unlike other e-commerce and tech platforms,
Clappily gives the right to refuse any order to its merchants. Merchants tied up with
Clappily can save on marketing costs and can keep the maximum share of the revenue with themselves. The app charges a nominal fee of 15 % of the sale for the tie-up and service.
Unorganised gift vendors can definitely capitalise on such a marketplace app and increase their reach manifold.
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