India Gift Cards and Incentive Cards Market Report 2022: Market Expected to Grow 20.4% to $6,672.4 Million in 2022

DUBLIN, February 16, 2022 /PRNewswire/ — The “India gift card and the report Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.

According to the Global Gift Card Survey for the fourth quarter of 2021, the gift card industry in the country is expected to grow by 20.4% on an annual basis to reach US$6,672.4 million in 2022.

Despite the short-term challenges in 2022, the medium and long-term growth of gift cards in India stay strong. The gift card industry India is expected to grow steadily in the first half of 2022 and register strong growth in the second half of 2022. The growth momentum is expected to continue to grow over the forecast period, registering a CAGR of 17.0% during the period 2022-2026. The domestic gift card market will grow from US$5,541.9 million in 2021 to reach US$12,508.7 million by 2026.

Government-owned companies launch gift card programs to increase market share in India

The donation industry India is one of the largest in the world, with billions of dollars spent annually on physical gifts in the country. Therefore, to promote ways to give cashless gifts and expand the gift card market, state-owned companies are launching gift card programs in India.

  • In June 2021LIC Card Services has entered into a strategic partnership with IDBI Bank to launch a Shagun contactless prepaid gift card for consumers in India. With the launch of this prepaid gift card solution, LIC Card Services is making inroads into India’s fast-growing digital gift card market.
  • Launched on the RuPay platform, the prepaid gift card can be used at millions of merchants and e-commerce sites nationwide. Therefore, helping the company to diversify consumer spending options on the card.

Strong growth in e-commerce market is driving the growth of gift card industry in India

One of the major factors driving the growth of the gift card market in India is the robust growth of the e-commerce industry. The number of consumers who have shifted to online shopping has increased significantly over the past four to eight quarters due to the prolonged lockdown restriction and rising internet and smartphone penetration rate in the country.

In particular, the online retail market is expected to reach 350 billion US dollars by 2030. The online retail market will be largely driven by younger generation consumers India, who prefer a mobile-first approach when shopping. Notably, this growth in the e-commerce industry will continue to support the growth of digital gift cards and the overall gift card industry in India over the next four to eight quarters.

Gift card players team up with airline operators to launch gift cards in India

Amid the growing adoption of gift card solutions by consumers of Indiagift card providers and airline operators enter into strategic partnership to launch innovative gift card services.

  • In September 2021Qwikcilver, one of the leading gift card providers in India, entered into a strategic partnership with Vistara. As part of the collaboration, Vistara is launching a Purple Ticket, a new gift card for traveling on Vistara, which can be used by individual consumers as well as for corporate gifts in India. Customers can use the gift card solution either to reserve their tickets or for additional services such as seat reservation, excess baggage and lounge access.
  • In November 2021, Qwikcilver has also entered into a strategic partnership with Airlink, an independent airline in Southern Africa. As part of this partnership, Airlink has also launched gift cards redeemable for airline tickets and several other services for its customers on its official website. Notably, Pine Labs, the global payments technology company, 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 offer buy-it-now and pay-later services in India

The digital payment ecosystem continues to evolve India. As fintech companies focus on innovation, the digital economy has seen substantial growth over the past four to eight quarters. Moreover, innovation in the gift card industry is also driving the market growth in India.

  • In June 2021, Qwikcilver announced the launch of EMI toll-free electronic gift cards, which consumers can benefit from using credit cards from listed banks. With the growing use of BNPL among consumers in Indiaoffering BNPL payment options on digital gift cards is expected to further drive adoption of the payment method in the short to medium term.
  • From a merchant perspective, the BNPL option on digital gift cards will not only generate greater value and ROI, but also open up new customer acquisition channels in India. the publisher expects gift card providers to innovate more in their product offerings, which will subsequently drive the growth of the gift card industry in India over the next four to eight quarters.

Reasons to buy

  • In-Depth Understanding of Gift Cards and Incentive Cards Market Dynamics: Understand the market opportunities, key trends and drivers along with the 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 card strategy; assess key market-specific trends and risks.
  • Get insights into consumer attitude and behavior in India: Understand changing consumer attitude and behavior and increase return on investment. Get detailed insights into retail spend with gift cards for individuals and businesses.
  • Get a complete perspective with 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 the dynamics of gift card sales by channel – online vs. offline sales and first-party vs. third-party sales.

Scope

Closed-loop gift card market share by major retailers. Major retailers covered include:

  • Flipkart Online Services Pvt Ltd
  • Tata Group
  • future group
  • Trust group
  • Amazon.com Inc.
  • Aditya Birla Group
  • K Raheja Corp

Total spend on gifts in India

  • By consumer segment (retail and business)
  • By product categories (13 segments)
  • By retail sectors (7 segments)

Gift Card Market Size by KPIs in Consumption Segments 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, intermediate, large enterprise)

Digital gift card market size in India

  • Per retail consumer
  • Per Retail Opportunity
  • By Corporate Consumer
  • By Business Buying Opportunity
  • By business size

Gift Card Market Size by Retail Consumer in India

  • By functional attribute
  • By Occasion1. Festivals and special days of celebration
    2. Milestone Celebration
    3. Self-use
    4. Other
  • Value by buying channel

Gift Card Spending by Consumer Behavior and Demographics India

  • Consumer buying behavior
  • Gift card buyer by age group
  • Gift card buyer by income level
  • Gift card buyer by gender

Gift Card Market Size by Company in India

  • By functional attribute
  • By Occasion1. Employee incentive
    2. Sales incentive
    3. Consumer incentive
  • By activity scale

Spending on gifts by product categories (disaggregated by individuals and businesses) in India

  • food and drinks
  • Health, well-being and beauty
  • Clothing, shoes and accessories
  • Books and multimedia products
  • Consumer electronics
  • Restaurants & Bars
  • Toys, children and babies
  • Jewelry
  • Sport stuff
  • Home and kitchen accessories and appliances
  • Travel
  • Entertainment and games
  • Other

Spending on gift cards by retail sector (split between retail consumers and businesses) in India

  • E-commerce and department stores
  • Restaurants & Bars
  • Supermarket, hypermarket, convenience store
  • Entertainment and games
  • Specialty stores
  • Health
  • Travel

Spending on gift cards by distribution channel (split between individuals and businesses) in India

  • Online gift card sales
  • Offline gift card sales
  • First party sales
  • Sales to third parties
  • Increase in sales

For more information about this report visit https://www.researchandmarkets.com/r/upw9vx

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