Blackhawk Network, has released its 2021 Global Holiday Shopping Forecast to equip retailers with the key lessons and insights to engage with shoppers in the year-end holiday season. Despite the uniquely unpredictable situations in the last 2 years, the year-end holiday gifting ritual has remained a constant amongst Indian shoppers. However, consumers’ approach towards traditional gifting has significantly shifted, with 68% of surveyed shoppers willing to purchase gift cards that give back to causes and 91% intending to send gifts to people who’ve experienced hardships. Predicting they will purchase an average of 22 gift cards, the Indians surveyed are expected to spend 89% of their holiday gifting budget on gift cards, with fashion and health & beauty being the most popular gift card categories.
Additionally, 84% of Indian shoppers surveyed said they do not want to deal with the hassle of returns or exchange of gifts. Interestingly, 62% acknowledged that they receive at least one bad gift every year. This changing perspective towards gifting presents a new opportunity for retailers to connect with their consumers, as both retailers and shoppers seek newer ways to navigate the challenges that the 2021 year-end holiday season has to present. The report also revealed that almost 96% of Indian respondents want to gift digitally in the upcoming holiday season.
Talking about the report, Theresa McEndree, head of global marketing and corporate brand, Blackhawk Network, commented, “In India, year-end gifting has become a big trend as it is an occasion to gift friends and family. The past year, we’ve seen a growing preference for gift cards among Indian shoppers owing to convenience, choice, and safety. Our research reveals that consumers are planning to spend more money on buying gifts this year than they did in 2020. However, consumers’ preferences and priorities have notably changed. This shift has posed unique challenges for retailers and businesses to engage and delight customers. Year-end 2021 opens new windows for retailers to align their strategy to meet the expectations of shoppers.”
Surveying the Indian consumers’ attitudes and behaviors around year-end gifting and shopper outlook, Blackhawk’s Holiday Forecast revealed the following trends:
Gift cards are poised for another big holiday season
The gift card market saw exponential growth in 2020[ii] as more consumers embraced a digital-first mindset. The changed habits of cautious consumers led to a spur in digital gifting during the holiday season. Becoming a new consumer favorite, e-gift cards accounted for nearly half the market share in 2020[iii]. This year, consumers’ habituation to the convenience of digital and growing delivery concerns and inventory issues will speed up the gift card industry’s growth in the year-end season. 91% of the respondents in Blackhawk’s survey stated the pandemic was the primary reason for them to consider purchasing digital gift cards.
The digital shift is here to stay this year-end holiday season
The acceleration of all things digital has made Indians turn to digital and contactless payments, digital wallets, digital gift cards, and QR codes as the pandemic reshaped consumer behavior. India has emerged as a forerunner in mobile commerce adoption in comparison to its global counterparts[iv]. This digital shift is expected to continue in the upcoming holiday season as Indian shoppers plan to use mobile wallets to pay for holiday gifts, especially Gen Z. 94% of surveyed Indian Gen Zers are more likely to find digital gift cards appropriate, further reaffirming the digital shift headed by the younger generation.
Consumers are redefining what’s important and looking for meaningful gifts
Along with considerable changes in daily habits and routines, consumers’ perceptions towards fundamental things have also evolved after the pandemic. Gifting is no exception. Consumers’ increased conscience to support this shift by giving meaningful gifts to others has highly altered the gifting dynamics. With Indian shoppers ahead of other markets, 80% of those surveyed chose to purchase gifts based on receipient’s needs rather than their wishes. Re-evaluating what is important to them, consumers are also looking to give back this year-end. India is already leading all of Blackhawk’s surveyed countries in giving gifts to family or friends who’ve experienced hardships, and in the year-end gifting season, almost 68% surveyed Indian shoppers intend to purchase gift cards that give back to causes, with 92% of the younger generation (Gen Z) looking to give back to cause they care about.
