Republished here on: 29 November 2011
Link to original article in Indian Express here
Responding to a consumer survey on gifting, a young professional in Gurgaon said: “I’ve always loved buying gifts for others, be it my father, mother, brother, colleagues or friends. But I always found it strange that they never used or seemed to enjoy my gifts! Earlier, I blamed it on their weird taste, but when my boyfriend started doing the same, I couldn’t con myself any more. Now, I play safe and get everyone gift cards instead. So they can choose whatever product they want to buy and I get to see them enjoy it. That’s happiness for both parties.” The young lady is not alone in her happiness. Owing to the new gifting trend that has emerged across the country, gift cards from leading brands are now sold from stores and portals in more than 150 towns and cities and can be redeemed across more than 2,000 premium brand stores. It’s not just different tastes that drive the demand for gift cards. It’s also a question of saving time. Not planning gift purchases in time problem across the world, and India is no different. Gifting is a last-day activity, with more than 70 per cent Indians doing their gift shopping on the last day. With gift cards, there’s help at hand. Gift card usage happens on multiple occasions and for multiple reasons. It could be for gifting to one’s near and dear ones, a way of showing appreciation to team members, a convenient way of managing large corporate staff programmes or simply a way to give children the freedom to buy what they want (without the parents going mad with the choosing process). The late CK Prahlad used to say India could be thought of as a kaleidoscope. With each small twist, India shows up differently. If we focus on one face or angle, we miss a thousand others. With the introduction of gift cards, the big picture is never lost. In India, brands across consumption categories have launched gift card programmes. These include players like Trent-Landmark, Titan, Peter England, Fastrack, Van Heusen, Puma, Raymond, Flipkart, PVR Cinemas, TTK Prestige and Hidesign. And consumers across age groups are biting the bullet. Gift cards have become a preferred option with both brands and consumers for the following reasons: 1. They are convenient to use; 2. They are secure across the desired set of brand outlets; 3. They offer versatile program flexibility; 4. They are attractive in design and offer good badge value in the wallet; and 5. They enhance the association of the brand with gifting. Market research shows that 88 per cent of Indian retail consumers are aware of the concept of gift cards. When questioned, 78 per cent evinced interest in buying such cards—thus making it that much easier for brands to promote their gift card programs to consumers.
