India's gifting tradition dates back to thousands of years ago, and it has become an essential part of the culture. India is a land of festivals and traditions, and it is common for people to gift something to family, friends, and colleagues during such occasions.  Gifting in India is not only about exchanging material things, but it represents love, affection, and emotions and connects people and families. It is a way of showing how one feels and symbolizes the relationship between the giver and receiver. The people in Ancient India gifted grain, cattle, fabric, pottery and even gold and silver ornaments to their peers and loved ones and with times this tradition has evolved. Earlier known as dāna, the gifting culture has always been profound in India. In religious texts, dāna was considered important and a responsibility as a practice of dharma. The dharma focuses on four concepts of knowledge, gift, penance and truth. The gifts given by kings were known as mahādānani. Gifting was practiced in medieval and ancient periods by Hindu kings. The gifting industry in the country has come a long way from traditional gifts to modern-day gifts.

The gifting industry in India is highly fragmented, yet it is one of the fastest-growing sectors. According to TechSci Research report, “India Gifting Market, By Purpose (Corporate Gifting and Personal Gifting), By Type (Souvenirs, Personal Accessories, Decorative Items, Greeting Cards, E-Gift Vouchers, Others (Flowers and Plant Gifts, etc.)), By Distribution Channel (Local Shops, Exclusive Outlets, Multi Branded Shops, Online and Non-Retail Sales (Direct, Distributor/Dealers, etc.)), By Region, Competition, Forecast & Opportunities, 2019-2029F”, the India Gifting Market is growing at a robust growth rate due to growing gifting culture, increasing demand for personalized gifts, and availability of a wide range of gifting options. Corporate gifting is a significant contributor to the growth of the gifting industry in India. The corporate gifting items include gadgets, promotional items and office supplies.  The market offers significant opportunities of growth for both international and domestic market players, mainly in the areas of innovation, personalization and digitalization.

Also there has been a rise in demand for eco-friendly and sustainable gifting options like disposable and reusable bags, bamboo products, and organic food hampers. These gift items have witnessed a surge in demand reflecting the desire of customers to reduce their environmental footprints and offering thoughtful gifts at the same time.

The trends towards corporate gifting, customized gifting, and the rise of e-commerce platforms have contributed significantly to this growth. The blog focuses on various aspects of the Indian gifting industry and why it is booming.

Gifting Tradition in India:

Giving gifts is a ritual in India, and it is governed by a set of unwritten rules that are deeply ingrained in the culture. The act of giving a gift is considered a gesture of goodwill, and it is often viewed as a way to strengthen relationships. In India, gifts are given on various occasions such as festivals, birthdays, weddings, and other social events. The type of gift usually varies depending on the relationship between the giver and the recipient and the occasion. For example, gifts given during weddings and engagements are usually gold or silver jewelry, while gifts given during festivals are usually sweets or dry fruits.

Factors Contributing to the Industry Growth

• Rise of E-Commerce Sector

The gifting industry in India has gone through significant changes in the last decade. The emergence of e-commerce has made it much easier to buy gifts for loved ones, and online platforms like Amazon, Flipkart, and others have changed the way Indians have purchased gifts.  This indicates the increasing popularity of the gifting industry in India. Moreover, the customers are opting for more customized gifting options such as personalized cakes, with pictures, gift baskets with accessories and other items, engraved jewelry. It also has given rise to online gift stores, who are now catering to the high demand, and providing innovative ideas to customers. It also has given rise to online gift stores, who are now catering to the high demand, and providing innovative ideas to customers.

• Corporate Gifts

The gifting industry in India is not only limited to the retail market but has also expanded to the corporate sector. Companies are looking for innovative corporate gifting ideas to gift their employees and clients. With the growth of the corporate sector in India, the demand for corporate gifts has increased. Corporate gifting has become an essential part of the corporate culture in India. A report by TechSci Research indicates that the Indian corporate gifting market will grow at a CAGR of 10.8% from 2020-2025. The India Gifting Market is likely to be dominated by the corporate gifting segment in the forecast period. This can be attributed to the fact that gifting is a way for companies to maintain a positive relationship with their employees, vendors and clients. Moreover, the demand has increased as the companies are spending more quality and personalized gifts. Also, corporate fun activities like Secret Santa during Christmas celebration also boost the sales.

One of the significant advantages of the gifting industry in India is the variety of gifts available. From traditional gifts like sweets, flowers, and handicrafts to modern-day gifts like gadgets, fashion accessories, and customized products, the gifting industry offers a wide range of options to consumers. The emergence of customized products and personalized gifts has added a new dimension to the gifting industry. With personalized gifting gaining popularity, new startups are coming up with unique gifting ideas.

• Rise in Demand During Festivals & Wedding Season

With festival seasons comes the demand for gifts and sweets as these have always been an essential part of Indian festivals and weddings. Festivals like Raksha Bandhan, Diwali, Eid present lucrative opportunities for organizations to boost their sales and launch new gift items. 

The festival season, particularly Diwali, is the peak season for the gifting industry in India as people tend to buy traditional gifts for their family and friends. However, with the ongoing pandemic, there has been a shift in the gifting trend. People tend to buy more practical and useful gifts like sanitizers, masks, and other healthcare products.

Weddings are also a crucial segment, contributing to a significant portion of the gifting industry. From personalized wedding invitations to custom-made bridal gifts, the wedding gifting industry is growing rapidly, and it is here to stay.

• Social Gifting

One of the emerging trends in the gifting sector is the social gifting, which refers to a way to send gifts to anyone, anywhere, using social media platforms. The trend of social gifting has the potential to disrupt traditional gifting and has the power to bring people together in unprecedented ways. At present, customers can choose from various social gifting options such as sending an e-gift card, sharing a wishlist on social media, or using a chatbot to send a gift. Social gifting trend expected to grow in the coming years.

• Innovations:

Brands are providing gifting solutions that allow customers to create personalised video messages from their favorite celebrities and send them to their loved ones. These personalized videos are customized and play an important part in the development of trustworthy relationships.  Gifts have a sentimental value and when someone receives a gift with a surprise like a message from one’s favorite celebrity can enhance the effect of the gift ten folds.

Prospects for the Gifting Industry

The gifting industry in India is expected to grow even further in the coming years. The advent of technology, personalized gifting options, and the rise of e-commerce platforms is expected to contribute significantly to this growth. The gifting industry is also expected to diversify, with more focus on premium and luxury gifting options. Millennials and Gen Z will be the key drivers of this growth. They are looking for unique and personalized gift choices that are innovative and eco-friendly. The demand for personalised and eco-friendly gifts will continue to increase, and companies that embrace these trends will gain a competitive edge. Additionally, the trend of cashless transactions is expected to grow, which could lead to a surge in online transactions and the development of new online marketplaces for gifts.

Increase in Job Opportunities

Apart from the economic impact, the gifting industry has also created employment opportunities for people. With the expansion of the gifting industry, there is a growing demand for skilled labor, from designers to packaging experts. The gifting industry has created job opportunities in various sectors, including manufacturing, designing, and logistics.

Challenges Faced by the Industry

The rise in number of counterfeit or low-quality products in the market is a major challenge for the market players. This is a main challenge for the companies selling their products through online mode as it is very difficult to identify the counterfeit products sold online. Such products not only leave a bad impression on the recipient, but they also tarnish the reputation of legitimate gift sellers.

Another significant challenge is the inconsistent quality of products and services provided. It can be difficult to assess the quality of a product in an era of online shopping, making it crucial to research thoroughly before making a purchase.

Another challenge is the unorganized nature of the gifting industry. The market is highly fragmented with several small and medium sized businesses operating in the sector. Also, the lack of infrastructure and logistics for the delivery of gift items is a major challenge as these may lead to delay in on time delivery or damage to products during transportation.

Some Recent Developments in the Market

In 2023, Archies launched “Give a Gift of a Card,” digital campaign during the Valetine’s Day, which encouraged the customers to give a gift card to their loved ones.

In 2022, Kimirica opened its new gifting studio in Indore city, Madhya Pradesh to strengthen its market presence in the city and provide customers a seamless experience.

Things to be kept in Mind When Gifting in India

• Presentation-Indians put in lot of efforts into wrapping and packaging their presents. In India it is general belief that wrapping a gift in black overshadows the gesture of gifting and invites terrible luck and is considered inauspicious. Thus, people mostly prefer wrapping paper with vibrant colors and embellishments over plain packaging. And packaging the gift in vibrant hues suggest appreciation, thoughtfulness, and respect. 
• Symbolism: It is very crucial to understand the symbolism behind certain gifts when gifting in India. For instance, if one is invited to a wedding or other special occasion, it usually involves gifting money or some useful household items and things like coconuts or sweets. Gold is generally gifted during weddings and on the occasion of Akshaya Tritiya to symbolize endless good fortune. Gold is associated with status and wealth. Gold jewelry is something that is passed down from one generation to another, as a gift in Indian families. The value of this metal is further propelled by the fact that it has extremely auspicious connotations.
• Gifting Experiences: Moreover, gifting options like tickets for concerts or plays are becoming increasingly popular too as they create lasting memories that can be shared between family and friends.

Influence of the Western Culture on the Market

The western culture has had an enormous impact on the gifting industry in India. Topical holidays such as Mother’s Day, Father’s Day, and Thanksgiving Day, and others, have driven the personalized gifting business in India at a significant rate. There is a wide availability of different gifting options for customers that give value and capture an everlasting relationship and moment through the use of a personalized gift token.  For instance, during Valentine’s Day, the message in a bottle received an incredible number of orders.

Growing Purchasing Power

There has been a great shift in the consumer purchasing power in recent times.

One can witness a shift in consumers preference from standard gifting options to unique customised gifting concepts that are a symbol or gesture of a personal link between the gift recipient and the gift giver.

Conclusion:

The gifting industry in India has come a long way and has emerged as a significant contributor to the Indian economy. With the advent of e-commerce and the growth of the corporate sector, the gifting industry has witnessed consistent growth and is expected to continue to grow in the coming years. The traditional gifting culture in India has taken a new form with the introduction of modern gifting ideas and personalized gifts. The diversity of gifts available in the market has made it easier for people to choose a gift according to their taste and budget. The gifting industry has not only created employment opportunities for people but has also helped in strengthening relationships and promoting love and affection.

Gift-giving is a revered tradition in India that speaks volumes about the country's rich culture and traditions. While the industry may have its challenges, consumers can enjoy a vast range of choices in gifts, both online and offline. The future of the gifting industry in India looks bright, and it will remain an essential part of the country's culture and tradition. The growth of the market can also be attributed to the secure payment structures.