Business

Why Gift Card Business Is Growing in India?

Gift card economy is thriving in today’s digital landscape 

Gift card sharing, in both formal and informal settings, is synonymous with celebration and a spirit of appreciation. In corporate houses and across departments, as interaction is being transported to the virtual space, digital purchases have witnessed a boom. The trend has a huge appeal, especially in an era of AI innovation and competitive promotional campaigns.

Let’s look at the myriad ways in which gift cards have been a blessing and why the trajectory is bound to witness a steady growth.  

Better Flexibility and Limitless Choice 

Gift cards are categorised into two types—open loop and closed loop, and could be applied to a range of domains—from luxurious purchases to utilitarian ones. This plethora of choices lures people into revisiting the brand. In fact, the versatility of gift cards makes them a popular choice and reduces the impediments that are traditionally associated with gifting somebody.  

A Steady Choice to Capture the Festive Spree

The gift card purchasing experience is wholesome and customers are allowed the liberty to access categories relevant to them: lifestyle, beauty, health etc. Amidst the hustle-bustle and holiday rush, this digitalised option to browse and conveniently cart products has its charm. Besides being hassle-free, gift cards enable customers to indulge in their interests, get acquainted with new brands / products and make safe purchases from the comfort nook.

Productive Generation of Data 

E-commerce companies are better disposed to understand consumer behaviour by tracking data and analysing vital insights using gift cards as a parameter. This buying spree makes space for online registrations or interactions to understand customer preferences, requirements, wants and feedback. Yes, gift card builds brand engagement but it is an understatement. Being an unconventional marketing tool, gift cards are equally capable of amassing revenue on new products and services and targeting new customer segments.

A Memorable Shopping Experience

Gift cards are easy to share. So families or teammates are better equipped to partake in the celebratory spirit through digital cards. This unique buying experience helps consumers to savour the reward by actually spending it on something they desire. Unlike cash bonuses, gift cards would never be absorbed into other expenses and instead, would remain as a happy reminder of success and achievement.

Corporate gift market has a distinct craze for it has been perceived by employees as a great extrinsic award system. Brands that have managed to establish a strong footing have witnessed a sharp rise in sell during festive or holiday seasons owing to gift card culture in corporates!

Puja Sinha

Coffee addict. Daydreamer. Hitchcock Fan. A post-grad in English Literature, Puja is a forever enthusiast of traversing long distances by rail. Her verticals of choice are entertainment, art & society. She can be found lazing in the garden when not fidgeting over deadlines.
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