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The growing popularity of gift cards in India can be attributed to a boom in digital payments and consumer preferences. However, some challenges still exist owing to the apathy of traditional minds to opt for gift cards out of their preferences for big boxes or cash-stuffed envelops.
The Entrepreneur India spoke to Shariq Plasticwala, Head of Gift Card Business in Amazon and Kumar Sudarshan, Co-founder and CEO of Qwikcilver, separately, at length about how brands can better meet the consumer needs in the domain. Based on the feedback received from their respective clients, here’s what the duo believe are the industry paint points that gift cards could help solve.
Getting The Personalized Touch
Traditionally, Indians gift a lot and are used to giving cash. Recipients, too, appreciate cash or gift cheques, which they can spend the way they like. However, it does not suffice the need for personalization. Gift cards can master this trick of the trade. Customized gift cards play a meaningful role as one can attach personal texts and picture messages. Brands are trying to cash in on this trend.
In India, buying gifts for the loved ones mostly happens after last-minute planning. In most cases, people fail to plan in advance and that’s when gift cards come-in handy. Companies should ensure that these cards are delivered quickly to recipients after online transactions are made. This will be immensely helpful for last-minute buyers. Plasticwala was one of the key speakers at the Qwikcilver Gift Card Conclave held in Bangalore last week.
Presentation And Size
Indians are always very particular about removing price tags of articles they gift to their near and dear ones. Brands should ensure that gift cards conceal their values, in terms of money, which will be known only after the cards are swiped at brand stores. For others, who are fussy about wrapping their gifts in glitzy papers, well-packaged and customized cards would impress them more than simple envelopes with cash.
Reports say the gift card industry is estimated to have a market capacity of $40 billion in India. Healthcare brands, salons and retail companies are trying their best to make the most of the growing market. Companies like Titan, SPAR Retail, Manipal Hospitals, Amazon are coming up with ideas that make gifting easier and yet classy.