India Gift Card and Incentive Card Market Report 2022: Market is Expected to Grow by 20.4% to Reach $6,672.4 Million in 2022 - Forecast to 2026
DUBLIN, Feb. 16, 2022 /PRNewswire/ -- The "India Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 20.4% on annual basis to reach US$6672.4 million in 2022.
Despite near-term challenges in 2022, medium to long term growth story of gift cards in India remains strong. The gift card industry in India is expected to grow steadily in H1 2022 and record a strong growth in H2 2022. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 17.0% during 2022-2026. The gift card market in the country will increase from US$5541.9 million in 2021 to reach US$12508.7 million by 2026.
Government owned-businesses are launching gift card programs to expand their market share in India
The gifting industry in India is one the biggest globally, with billions of dollars being spent each year on physical gifts in the country. Consequently, to promote cashless ways of gifting and to expand the gift card market, Government-owned businesses are launching gift card programs in India.
- In June 2021, LIC Card Services entered into a strategic partnership with IDBI Bank to launch a contactless prepaid gift card Shagun for consumers in India. Through the launch of this prepaid gift card solution, LIC Card Services is foraying into the high-growth Indian digital gift card market.
- Being launched on the RuPay platform, the prepaid gift card can be used at millions of merchants and e-commerce websites in the country. Therefore, helping the firm to diversify the consumer spending options on the card.
Strong growth in the e-commerce market is driving the gift card industry's growth in India
One of the major factors that are driving the growth of the gift card market in India is the robust growth of the e-commerce industry. The number of consumers who turned to online shopping increased significantly over the last four to eight quarters on the back of the prolonged lockdown restriction and rising internet and smartphone penetration rate in the country.
Notably, the online retail market is expected to reach cross US$350 billion by 2030. The online retail market will be largely driven by younger generation consumers in India, who prefer a mobile-first approach while shopping. Notably, this growth in the e-commerce industry will continue to support the growth of digital gift cards and the overall gift cards industry in India over the next four to eight quarters.
Gift card players are partnering with airline operators to launch gift cards in India
In the midst of the growing adoption of gift card solutions among consumers in India, gift card providers and airline operators are entering into a strategic partnership to launch innovative gift card services.
- In September 2021, Qwikcilver, one of the leading gift card providers in India, entered into a strategic partnership with Vistara. Under the collaboration, Vistara is launching a Purple Ticket, a new gift card for travel on Vistara, which can be used by individual consumers as well as for corporate gifting in India. Customers can use the gift card solution either for booking their tickets or for additional services such as seat booking, excess baggage, and lounge access.
- In November 2021, Qwikcilver also entered into a strategic partnership with Airlink, an independent Southern African airline. Under the partnership, Airlink also launched gift cards for its customers that are redeemable against air tickets and several other services on its official website. Notably, Pine Labs, the global payments technology firm, acquired Qwikcilver in 2019 to foray into the gift card market in India.
The publisher expects more such innovative strategic partnerships between gift card providers and airline operators over the next four to eight quarters.
Gift card providers are offering buy now pay later services in India
The digital payment ecosystem continues to evolve in India. With fintech firms are focusing on innovation, the digital economy recorded substantial growth over the last four to eight quarters. Moreover, innovation in the gift card industry is also boosting the growth of the market in India.
- In June 2021, Qwikcilver announced the launch of no-cost EMI on e-gift cards, which the consumers can avail of through the use of credit cards of listed banks. With the use of BNPL surging among consumers in India, offering BNPL payment options on digital gift cards is expected to further boost the adoption of the payment method from the short to medium-term perspective.
- From the merchants' perspective, the BNPL option on digital gift cards will not only drive greater value and ROI but will also open up new customer acquisition channels in India. the publisher expects gift card providers to further innovate with their product offerings, which will subsequently boost the growth of the gift card industry in India over the next four to eight quarters.
Reasons to buy
- In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2017-2026) for gift cards and incentive cards in India.
- Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
- Get insights into consumer attitude and behaviour in India: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
- Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Distribution channel insights: Understand gift cards sales dynamics by channels - online vs offline and by 1st party vs 3rd party sales.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Flipkart Online Services Pvt Ltd
- Tata Group
- Future Group
- Reliance Group
- Amazon.com Inc
- Aditya Birla Group
- K Raheja Corp
Total Spend on Gifts in India
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in India
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in India
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in India
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in India
- By Functional Attribute
- By Occasion1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other - Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in India
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in India
- By Functional Attribute
- By Occasion1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive - By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in India
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in India
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in India
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/upw9vx
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