Market Trends of India Gift Card And Incentive Card Industry
The Thriving E-Commerce Market is Fueling the Growth of the Gift Card Industry
The rapid expansion of e-commerce in India has been a key driver behind the growth of the gift card market. With the rise in internet and smartphone accessibility, there has been a substantial increase in online shoppers in recent years. The surge in e-commerce is expected to be a game-changer for the gift card industry in India, especially with younger consumers who prioritize mobile shopping. This trend is likely to propel the growth of digital gift cards over the next four to eight quarters. Digital gift cards have gained popularity in sectors like hospitality and spa services, with many restaurants using them to reward loyal customers. Businesses offering gift cards have become a strategy to boost sales and meet targets while also ensuring a steady cash flow from repeat customers. The growth of the market in India can be hugely attributed to the increased usage of the internet and smartphones.
Growing Internet Penetration in India is Positively Influencing the Market
The internet penetration in India has witnessed a significant surge in recent years, revolutionizing various industries. With nearly 1.24 billion Indians accessing the internet via their smartphones on a daily basis and spending an average of over three and a half hours online, the trust in digital services has grown immensely. The digitization brought about by demonetization has encouraged Indians to embrace online financial transactions, and this trend has persisted. Consequently, it comes as no surprise that approximately 74% of internet users in India have engaged in E-commerce activities. The 'Digital India' initiative has played a significant role in boosting internet connectivity, with the number of internet users reaching 1.24 billion in 2023. The payment behavior of Indian consumers has undergone a monumental transformation. The integration of payment methods with the gift cards facilitated by FinTechs and PayTechs has enhanced convenience and ease of use. This has led to the emergence of new customer journeys, driving adoption in both physical and online retail spaces.
