We live in an era of instant gratification, where we want everything right here, right now. While we see this evolution across industries, it is extremely prevalent when it comes to gifting. As a result of “the right here right now” attitude the trend of online gifting has caught on fast globally, and India too, has joined the bandwagon, as is evident with the change in our gifting styles.
Gone are the days when only birthdays, anniversaries and festivals were the occasions that demanded one to shower their loved ones with surprises and gifts. Today there is a gift to celebrate every moment – be it a personal occasion, corporate celebration, an international festival, a baby shower or even the upcoming Valentine’s Day.
The gifting market in India is estimated at $30 billion of which only around $400million is online. However, it is definitely moving upwards. Compared to brick-and-mortar shops, online portals offer a host of advantages to its consumers. And what better time to observe this growing momentum than around Valentine’s Day when gifting is at its peak. Today, everyone wants to make this day of love extremely memorable and special by giftinghis or her loved ones pleasant surprises.
As one of the largest multi-category gift discovery platform we have been privy to the online gifting habits of our users for a few years. So, we decided to map some valuable insights in the space to help you get a peek into what trends Valentine’s Day stirs up in our country.
1. Money and spending for your loved one have a lot to do with each other
You don’t need money to express your love. But, when it comes to spending for your loved one on Valentine’s Day, money definitely has a lot to do. According to IGP’s analysis, the average order value in 2016 was INR 1350. This value is estimated to revolve around INR 1500 in 2017.
This shows that a considerable number of people are ready to spend good amounts of money, provided they get high-quality charming gifts.
In 2016, 55% of Valentine’s Day gifts were purchased by men, with average order value being almost 26% higher than gifts purchased by Women. This highlights the skew of the obligation & the compulsive nature of gifting in an intimate relationship towards men.
In 2016, top gifting categories included Swarovski Jewellery, Imported Chocolate Hampers, Exotic flower bouquets, Large sized teddy bears and Personalized puzzles. So, if you struggle at choosing the perfect gift for your loved one, select one of these categories as they never fail to impress recipients.
2. Valentine’s Day is not just about couples
In 2016, the customer data revealed that Valentine’s Day gifts were also booked for friends, family members, colleagues, and even pet animals. In fact, in 2017, around 43% of total Valentine’s Day orders have been already booked for loved ones other than romantic partners. Evidently, Valentine’s Day is more about embracing your love for your near & dear, irrespective of what type of relationship you share with the recipient.
3. Long distance relationships
In 2016, it was observed that around 13% of Valentine’s Day orders were purchased by people living abroad for their loved ones in India and 8% of the gifts were sent from India to abroad. This reflects that love does not have any boundaries and its value is not directly proportional to the distance between two people. From the business perspective, it is also highlights the importance of international customers (mostly NRIs) as growth drivers for Indian firms.
4. Orchids are the new roses
We have has observed that orchids have been ordered more than roses for this year’s Valentine’s Day. In fact, the proportion of red roses has gone down in overall sales this year. This may sound contrary to the general opinion, but people are clearly being experimental in choosing Valentine’s Day gifts for their loved ones. Also, sales for curated flower hampers, including chocolates and teddy bears, are higher as compared to flower bouquets. This is because people want to select gift hampers as they have a diverse range of items and invoke multiple emotions in varying degrees. Flower bouquets are now too mainstream for Valentine’s Day.
The shift from offline to digital in the gifting segment unlocks a whole suite of branding opportunities for marketers. It comes as no surprise, therefore, that the best brands around the world are already leveraging digital gifting to cater to the shifting trends, to create authentic personalized rewarding moments online, and engaging their customers at a whole new level.
(Disclaimer: This is a guest post submitted on Techstory by the mentioned authors. All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)
About The Author:
Rahul Garg is the CEO of IGP.com and is responsible for overall strategy, team building & execution. Prior to joining IGP.com and apart from his E-com start-up Artisangilt.com, Rahul has 8 years of work experience in investment banking, where he held a broad range of advisory roles at the top global investment banks like Lehman Brothers, Nomura International and HSBC Securities.
He was the recipient of the Lehman’s firm wide Annual Award for Outstanding Contribution. He was also ranked the 16th best analyst in India by Asia Money.