Gifting market pegged to grow from $119 mn in 2019 to $159 mn by 2025: Varun Moolchandani
The year 2023 has started on a rollercoaster note, with an accelerated adoption of generative AI, AI chatbots, and digital innovations. This is bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.
As part of our annual TRENDING NOW series, Adgully has been approaching key industry leaders to Crystal Gaze into 2023 to highlight the major trends and developments that they see dominating the industry in the year ahead.
In conversation with Adgully, Varun Moolchandani, Executive Director, Archies, speaks about the key trends dominating the gifting industry in 2023, utilisation of social media, major focus on maximising export sales, and more.
Key trends dominating the gifting industry in 2023
In 2023, several key trends are dominating the gifting industry. Here are some of the prominent ones:
Using social media for gift ideas: Social media platforms continue to play a significant role in shaping consumer preferences and inspiring gift choices. People are increasingly turning to platforms like Instagram, Pinterest, and TikTok for gift ideas, as they offer a wide range of visual inspiration and recommendations from influencers and brands.
Prioritising convenience: Convenience has become a top priority for both gift givers and recipients. With busy lifestyles and the rise of e-commerce, consumers seek hassle-free shopping experiences. Online marketplaces, same-day delivery services, and subscription-based gift boxes have gained popularity due to their convenience and time-saving benefits.
Personalised gifts: Personalisation has become a key trend in the gifting industry. Consumers are seeking unique and customised gifts that reflect the recipient’s individuality and create a more meaningful connection. Personalized items, such as engraved jewellery, monogrammed accessories, and custom-made products, are in high demand.
Meaningful gifts: There is a growing emphasis on giving gifts that have a deeper meaning and purpose. Many consumers are looking for products with a story, ethical and sustainable credentials, or gifts that support a cause. This trend reflects a desire for more mindful and intentional consumption, as well as a focus on the overall impact of the gift.
As a company, it is wise to recognise and adapt to these industry trends to fulfill your customers’ requirements. By leveraging social media platforms for marketing and product promotion, offering convenient shopping options, providing personalised gift options, and curating meaningful and purposeful products, you can position yourself to meet the evolving needs and preferences of your customers in 2023.
Major expectations from 2023
The gifting industry in India is expected to witness significant growth in the year ahead. With a projected increase from $119 million in 2019 to $159 million by 2025, the gifting market in India is poised for expansion.
The anticipated growth can be attributed to multiple factors. Firstly, the rising disposable income among the Indian population has increased their purchasing power, allowing for more spending on gifts and celebrations. Additionally, the influence of western culture has played a role in shaping gifting trends in the country. As people embrace a more globalised lifestyle, the demand for a variety of gifts and innovative gifting ideas is likely to grow.
It is important for businesses operating in the gifting sector to recognise these market dynamics and capitalize on the opportunities they present. By understanding the evolving preferences of consumers, tailoring offerings to meet their needs, and effectively promoting their products and services, companies can position themselves for success in the coming year and tap into the growing gifting market in India.
Key focus areas for Archies in 2023
In 2023, our company will have several major focus areas to drive growth and maximize our market presence. Two key areas of focus will be:
Company-owned stores: We will prioritise the expansion and enhancement of our company-owned stores. By investing in these physical retail spaces, we aim to provide a unique and immersive shopping experience for our customers. We will focus on creating inviting and aesthetically pleasing store environments that align with our brand image. Additionally, we will ensure that our stores offer a wide range of high-quality products, excellent customer service, and innovative displays to attract and retain customers.
Maximising export sales: Another major focus area for our company in 2023 will be expanding our export sales. We will work towards covering a 360-degree horizon by targeting new international markets and optimising our existing export operations. This may involve conducting market research to identify promising regions, establishing partnerships with distributors and retailers in those markets, and tailoring our product offerings to meet the specific preferences and demands of international customers. By leveraging global opportunities, we aim to increase our brand visibility, diversify our revenue streams, and achieve sustainable growth.
By prioritising the development of our company-owned stores and maximising export sales, we will be strategically positioning ourselves for success in 2023. These focus areas align with our goals of enhancing customer experiences, expanding our market reach, and driving overall business growth.