While the gift card industry in the US is estimated at about USD 149 billion, the Indian gift card industry is still at a nascent stage, amounting to about USD 40 billion. However, with demonetization, cashless economy, and digitization contributing to changes in various aspects of business, the ancient tradition of gifting is also changing. Materialistic gifts are taking a downturn, whereas gift cards are on the upswing.
Recently, Qwikcilver, an end-to-end prepaid gift card solutions company, organized a conclave in Bengaluru, in which experts discussed the burgeoning industry of gift cards and its scope in India at present as well as in the future.
TP Pratap, Co-Founder & Director, Qwikcilver, said, ‘’The act of ‘gifting’ is at the crossroads of social and commerce, which arguably, are the two biggest key drivers of consumer consumption. The gifting category in India is also undergoing massive transformation. A continuously widening consumer base combined with a wide array of gifting options ensures that the category will continue to grow.’’
Kishore Biyani, Group CEO, Future Group, via video at the conclave, said, “We believe that gifting is one of the biggest social interactions and events in our society. At Future Group, we believe that gifting will be a very big business for us, which may touch Rs 1,000 crore very soon. We have launched a separate division and a new organization called Future Gifting to manage this business. This will handle all the gifting-related business of the Future Group.”
Govind Shrikhande, Customer Care Associate & Managing Director, Shoppers Stop, via video at the conclave, said, “Gifts have always had a special place in our hearts. Traditionally, gifts are given on special occasions. But in recent times, we find that gifts create their own occasions. We see cash getting replaced with gift cards.”
During the event, a whitepaper was also launched whose key highlights are mentioned below:
E-gifting transactions have grown threefold in the last three years. The gift card category in India is growing at a rapid rate of 3x year-on-year.
The gifting category in India is undergoing a massive transformation and is estimated to be at USD 40 billion. It is broadly split into four broad categories: Festival Gifting, Occasion-based gifting, Personalised Gifting, and Corporate Gifting.
The average spend for the top value segment i.e. hospitality is Rs 9,750, while the average load value across different categories stands at Rs 2,126.
54 per cent of gift cards are redeemed by the end consumers within 30 days of purchase.
In India, digital gift cards have grown at a faster pace than physical gift cards, leapfrogging the Indian market in comparison to the Western market. Digital gift cards will constitute an increasingly higher share—as high as 80 per cent for the top 10 brands of India by 2019–20.
In this age of digital distraction, an integrated omni-channel retail experience across categories such as retail, e-commerce, hospitality, travel, gift cards and e-gift cards are fast becoming the preferred gifting choice of the new-age consumer.