How to Grow as a business with growing gifting industry
Gifting industry has been on the rise and shown definite growth in India in the recent past. According to an article, India’s current online gifting market of $65 million is estimated to grow to $84 billion by 2024. This is an indication that gifting industry is going to see some great innovations and fantastic products to power this growth.
But before we delve into the online gifting, let’s look at how gifting industry has worked traditionally. Whether it is personal gifts or corporate gifts, cash, cheque, gift via salary disbursals and physical cards have been some of the primary mode of giving gifts. While these modes have proven to be successful it could also become increasingly difficult if the above mentioned predictions of industry growth are to be believed. All these modes are good in their own way but they are known to pose some challenges. We are talking about challenges like operational difficulties, cost ineffectiveness and scaling concerns. What do I mean by that? Imagine a company is issuing about X number of physical gift cards today and needs about 3–4 employees to manage the operations, the day they decide to scale it 10X, they are going to have operational nightmare. The cost also increases.
Moreover, with the advent of the e-commerce companies, our shopping has moved from retail store to e-tail stores. Thus, the need for online gifting solutions has only amplified further. Look at how Amazon, Flipkart and other major e-commerce companies have made online gift card a mainstream product. Isn’t it very simple to get a gift card via email and use it on Amazon to make a purchase. I have personally used their e-gift card and I can’t tell you how convenient it has been.
Well, let’s talk about this virtual gift card. It is like any other credit card which can be used for shopping online. Typically, you refer to these payments as Open loop transactions. They work like a charm for any kind of online payment. While they are a great tool to use your gift amount, gift cards by their very nature are only good for one-time use. For a user, it is just another plastic card to be discarded, while for a corporate the cost of card may not make sense. I’d like to believe Virtual gift cards solve these very problems. Because of its form factor, your users won’t have the fear of losing it or damaging it.
Additionally, its benefits are great for a business. If you run a business you know that one of your priorities is to optimise on cost. And if you are in the gifting industry with traditional ways, then I am sure, you know what I am talking about. After all aren’t all businesses chasing these things: Save money, save time and scale fast? But to achieve this you need product that supports you and understands this need.
We at MatchMove identified this and focused on building the product that does not require you to have technical skills. With zero technical investment you can literally launch your own product line in a matter of few days. Our team worked on a product, what we like to call as Lightspeed, which is aimed at helping companies to scale their businesses without having to get involved in the technical know-how.
The landscape for the gifting industry is soon changing and you as a business should grab this opportunity. It is only going to grow from here on.
If you would like to know more about the product I mentioned, simply leave a comment with your email address or click on the link and fill in the details and I will get in touch.