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How Personalization In The Gifting Industry Is Attaining New Identity?
The personalized gifting industry in India has witnessed a massive growth over the past decade due to rising income levels and aspirations.
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Personalization in the gifting industry has been increasing at a fast pace as large numbers of consumers focus on buying gifts that are exclusively designed to make loved ones feel special and build stronger personal connections. Growing digitalization and modern manufacturing processes and technologies have allowed market players to plan, produce, and deliver finished products in minimal turn-around time.
The personalized gift category has quadrupled in the last 5 years, whereas the rest of the gifting categories are growing at a pace of 10-25 % year over year and become one of the major categories now. Personalized gifts are more economical and easy to access these days. Currently, players working in the personalized gifts market are increasingly focused on consumer preferences and behaviors to deliver personalization within different gifting categories including jewelry, clothing, photo frames, mugs, and others categories of products.
The personalized gifting industry in India has witnessed massive growth over the past decade due to rising income levels and aspirations. As per the global gifts retailing market, it will earn revenues of almost USD 77 billion by 2022. The gifting market is segmented into two parts, i.e. corporate gifting and personal gifting, with the former making up a majority share equalling 80% of the entire market. The advent of a digital economy and increased per capita income of millennials are also disrupting the overall growth of the gifting market in India giving customers ease and satisfaction by making online shopping viable.
The evolution of the Indian customer has played a key role in bringing about this revolution, as customers have both the willingness and the ability to pay for unconventional gifts. Factors like creative packaging, personalized notes, initial engraved boxes, etc. render all together with a seamless experience displaying extra efforts and emphasizing care, thankfulness, and gratitude.
The growing popularity of online retailing has made it easier for consumers to browse and purchase products that can be gifted. For instance, earlier online retailing was limited to photo frames, mugs, and cushions but now there the range has expanded to personalized lamps, plants, tiles, calendar, tote bags, scrolls, crystals, etc. It is expected that with increasing internet penetration, there will be available a wide range of customized gifts that is innovative in design, material, and technology. There is also seasonality attached to gifting. On occasion such as New Years demands of Personalized Calendars reach to 57.2% of all personalized orders, so does the demand for personalized photo cakes during Anniversary season approximately 60% of anniversary cakes are personalized.
Some of the factors that contribute to the evolution of personalized gifting market in India are:
Increase in Purchasing power of the millennials
Increase in purchasing power has contributed to changing consumers buying behavior. Affluent lifestyles and recent buying needs of aspirants have resulted in a massive shift in consumer buying behavior lately. Today, individuals are moving from traditional gifting options to unconventional customized gifting concepts which act as a symbol or token of a personal bond between the recipient of the gift and the person giving the gift.
Influence of western culture
This is one of the most significant factors contributing to the growth of personalized gifting in India. Bigger players in the market and MNCs have brought the concept of corporate gifting to their employees during festivals like Diwali, Christmas or New Years. Also, topical events like Mother's Day, Father's Day, and Thanksgiving Day, etc. have given an enormous boom to the personalized gifting market in India. Today, customers are open to a wide array of gifting ideas that deliver value and capture an eternal bond and moment using a customized gift token. Even personalized messages have their own charm and thus demand, during Valentines, the message in a bottle saw some staggering number of orders recently.
Booming e-commerce industry
India for over a decade has noticed a boost in the online shopping experience. The advent of digitalization, deeper internet penetration, and efficient and smooth functioning logistics contribute to the growth of the e-commerce industry in India. Today, customers are open to broader options online, even customers from Tier 2 & Tier 3 cities are contributing to the overall growth of the market. E-commerce offers great value to its customers in a timely and efficient way at the best price.
The future of personalized gifting market in India is bright and on an upward swing as India is among the top emerging nations contributing to the growth of the global gifting market. The emergence of advanced technology and enhanced and secure payment structures are also contributing to the rapid growth of this market to a great extent.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.