Why gifts that are personalized are on the Rise
Gifts indicate the form of love affection and care but when the gifts are personalized it beautifully captures a memorable moment and it lasts in the memory
for a lifetime.
India’s gifting industry has seen a tremendous change in the behavior of the consumer all thanks to the development of the technology. When it comes to online
gifting the total market share of the online gifting is expected to reach $84 billion dollars by the year 2024 which currently is $ 65 million. For better understanding lets divide online gifting into two parts which are
- Personal Gifting
- Corporate Gifting
Whereas corporate gifting takes a large pie of share with accounting up to 80 percent of the market share.
Personalized gifting has evolved so much in recent times that it is coming to par with the corporate gifting. The main driving force was internet penetration, western culture, and leaning towards an urban lifestyle which has impacted our lifestyle to a great extent and has caused the personalized gifting markets to reach the next level. Personalized gifting is more customer-centric which also includes the choice of the recipient.
Personalized gifts are mainly made for your close and loved once for their special occasions as well as for special days. It is not just a piece of product which is
covered by a shinning paper. The demand for personalized gifts is increasing at such a pace that it has opened an altogether new industry known as the online gifting industry.
To provide some interesting stats custom made products account for over $ 20.4 billion in the industry and trust me guys this is just the tip of the iceberg it is expected that the price will rise $31.6 billion in the coming years.
With the increasing consumer desire to make their gifts more customized also mean that they expect to make their gifts personalized by adding exclusivity factor into it.
Lets now dive deep to understand why personalized gifts are best and how the industry is changing.
Higher purchasing power
Indians have more purchasing power now if we compare it with the previous decade therefore this is the primary factor for the rise of the personalized gift market. A report by the trading economics says that the purchasing power in India has increased to 192,817,450 INR millions in 2018 from 169,623,970 INR millions in 2017. Also now more members of the family are earning money which gives them excess cash to fulfill their needs and wants.
Awesome Consumer Experience
Indian companies are improving day by day to enhance their consumer experience by providing last-mile delivery which is making online buying more accessible to the majority of the population. With the increase in so many online players, the attention span of consumers has been declined considerably with so many options available. That is where Classy things provide a seamless experience from the first click of the customer to the last doorstep delivery eliminating each and every roadblock that provides inconvenience to the customer.
A plethora of customers are looking to personalize their gift in the best possible manner and they are leaving no stones unturned to find their perfect gift for their loved and dear once. The personalized gifting industry is evolved so much that it no longer sells just coffee mugs or photo frame now there are so many products which can be personalized right from your favorite customized passport cover to customize keychains to everything that comes into your mind. This huge wave of demand for personalized products has forced the industry to come up with better and new products that can be customized. But if we analyze the personalized gifting industry the highest demand is during the festival seasons for eg Diwali, Mother day, valentine days has encouraged people to buy customized products for their dear once but players make enough profit that they can sustain it for the rest of the year. Add on factors such as creative packaging has ensured that customers purchase customized products throughout the year.
Growing Consumer Demand
The online consumer market has seen tremendous growth all credit goes to Jio. After the U.S and China, India is going to become the 3rd largest consumer market, and consumer spending is expected to grow from 1.5 trillion to nearly 6 trillion USD by the year 2030. However, it is assumed that with the growing internet penetration online personalized gift market is going to see a huge surge in demand, and the personalized gift market is forecasted to grow at 8.11 % for the year 2018 to 2023
The Road Ahead
With the above points, it is clearly evident that the future of the personalized gift market looks very bright not just an industry point of view but also an economic point of view. The online gifting market has seen a huge demand from men who have shifted their behavior from offline to online. Jewelry, custom made shoes, photo frames are some of the preferred gifts that are purchased by the consumer.