Luxury houses need to innovate in order to appeal to the youth of today, who rule the consumer market entirely
Gifting is part of the Indian culture, integrated into our heritage and social customs. Therefore, it shouldn’t be all that much of a surprise when Technopak, India’s leading Management Consultants, tells us that entire Indian gifting industry is worth about 250,000 crores.
Leading driving forces of this industry would include leading brands that indulge in increasing marketing procedures, coupled with the personalisation and customisation of gift products. Creative packaging, personalised notes, boxes with special engravings all make the gifting experience closer and more intimate, which, of course, contribute to a seamless buying experience, thus significantly boosting the gifting market of the country. Affluent lifestyles and the undeniable influence of social media has a huge impact in the field of unconventional gifting. In fact, high-income segments are projected to grow three-fold to 197 million households by 2030, while there has been an emergence of new players, challenges and innovation.
The present online gifting market is estimated at $65 million and is expected to scale up to $84 billion by 2024. Long-term growth perspectives for India’s online gifting market remain robust, despite the infinite prospects of disaster that the pandemic has rung in. Online gifting has taken centre-stage, and the idea of long-distance gifting has been made easy and accessible.
Luxury brands have, for more than a decade, focussed merely on wealthy consumers across metros in India. However, sales records depict that tier 2 and 3 buyers are some of the biggest consumers in the luxury sector, with e-commerce enabling this growth phenomenon. Millennials today possess a high spending power and easily rule the entire consumer market. They have greater preference for luxury items and regularly seek social media as the first source of information.
Luxury houses, therefore, need to innovate more in order to nurture the beautiful tradition of gifting, and inculcate options that are meaningful and rooted in culture, yet have a modern touch.