Mumbai: The festive season in India carries substantial economic importance, driven by a thriving gifting industry. During festivals such as Diwali, New Year, and Christmas, the gifting industry witnesses substantial growth, consistently contributing to a significant portion of the gifting market. With a pre-pandemic growth rate of 40 percent (2019-20 to 20-21) and a post-pandemic surge of 50 percent (2021-22 to 22-23), IGP, India's leading online multi-category gifting platform, demonstrates the industry's resilience and adaptability. Corporate gifting has evolved into an integral component of the business landscape, and the festive season remains a platform for meaningful expressions.
Corporate gifting currently constitutes more than 10 percent of IGP's total revenue, steadily growing year by year. A noticeable trend this festive season is the organic shift of D2C customers toward bulk purchases for personal gifting, highlighting the close place gifting holds in our culture. In terms of corporate gifting, major metropolitan areas play a significant role, while Tier 2 cities also show steady growth, which is efficiently served through our internal network of delivery warehouses.
IGP's data highlights a consistent year-on-year growth of over 60 percent across various festivals. Gift cards now constitute a notable ten percent of the business, while the corporate gifting segment has excelled with an impressive 20 percent year-on-year expansion, setting new industry benchmarks. Additionally, the personalized gifting sector has exceeded expectations with a remarkable 25 percent year-on-year growth, emphasizing the unique value of personalization.
While items like home and fashion accessories and food products were popular in 2018-19, the trend has shifted toward curated hampers featuring sweets, chocolates, dry fruits, and health foods in 2022-23.
City engagement is on the rise, with a surge of 60 percent in orders from the top 50 cities during festivals. Notable cities such as Mumbai, Delhi/NCR, Bangalore, and Hyderabad have shown strong engagement.
“We all spend a substantial part of our lives at our workplace, so the relationship between employer and employees, or even a company and its clients is very critical. A gift is a way of showing appreciation and goodwill and demonstrating that the relationship really matters. We at IGP are in the business of enriching relationships, and we are pleased that we are able to help our corporate clients foster connections with our wide range of gifts.” said IGP.com CEO and founder Tarun Joshi.
Sustainable gifting has experienced significant growth, surging from one percent to ten percent over the past five years. Hampers have grown from ten percent to 30 percent, personalized gifting has flourished from ten percent to 20 percent, and our same-day delivery service has skyrocketed from 20 percent to 50 percent.
In conclusion, the gifting industry in India is a dynamic force that continues to shape the country's socio-economic landscape. The significant contributions of festivals like Diwali, New Year, and Christmas highlight the vital role of corporate gifting in fostering business relationships and expressing goodwill.
