A Kerala-based startup, Farmers Fresh Zone (FarmersFZ), has been selected for the Accelerator Programme by the Food and Agriculture Organisation (FAO) of the UN.
Gifting is an integral part of Indian culture and customs. People use it to show their love and affection to near and dear ones on festivals and other occasions. Considering the Indian gifting culture and huge population size, It is no wonder that India’s gifting industry size is about Rs 250,000 crore, as per Technopak, India’s leading Management consultant.
Moreover, with the advancements in technology and manufacturing processes and Diwali and other festival shopping seasons on, this number is sure to rise.
Young Entrepreneurs in Gifting
Covid has given a chance to flourish many young entrepreneurs and new players who are diversifying the whole sector. ‘Wrapping Happiness’ is one of them, providing customized corporate gifting solutions.
The company said, “It started in 2021 during covid, with an aim to bring happiness to people, when they were depressed.”
“None of the industry players have so far ensured the creation of beautiful gifting options based on emotions, happiness, and relationship. This is why, with an aim to fill this gap in the market, our online gifting portal is built on three pillars – Emotions, Relationships, and Happiness,” said Anusha Mehta, founder of Wrapping Happiness.
What’s lacking in the gifting industry?
The gifting industry is commonly segregated into corporate and personal gifting with the former accounting for up to 80 percent of the market. There are already many established brands in the industry that are working on personalization and customization but many times they are not able to satisfy the client due to poor packaging.
According to Researchnxt, 73% of individuals believe that originality and packaging are highly significant for them.
While talking on this issue, Anusha Mehta said, “However, there are many established brands in the industry customized gifting solution industry, the market still lacks good packaging, losing the originality of the gift. Besides, good quality, proper client servicing, and commitments provide convenience at the click of the mouse.”
“Generally, companies don’t work on emotional connect in corporate gifting, resulting in a lack of feeling from the employees for the company. But new companies like us are solving issues and trying to emotionally connect employees with their organization, benefitting both,” she added.
Challenges startups facing in corporate gifting
When we asked about the challenges, she answered,” In corporate gifting maintaining quality and customization in bulk orders is a great challenge. But Wrapping Happiness has been able to deal with these challenges by maintaining proper coordination between our clients and manufacturers.”
“People are moving towards quick commerce, wherein everyone is in a hurry to receive stuff but what really happens is a compromise in the quality. Every beautiful and quality-checked thing needs time, something done in a hurry – its chances of getting quality compromised and packaging compromised is too high! So we need to understand, everything needing personalization should get some time,” she added.
Future of the gifting industry in India
India’s handicraft tradition is very much alive and growing day by day. Moreover, many handicraft items can be customized, making the corporate gift extra special. These gifts are often distributed on special occasions such as birthdays, milestone achievements, and festivals.
Buying corporate gifts made in India has become the current trend in the country. It is very much encouraging that every 6 out of 10 people in India want to buy ‘Made in India’ gifts, reported Business Today.
In addition to this, the corporate gifting segment prefers to buy digital gift cards. With online shopping for gifts increasing every day it is Indian gifting industry is expected to reach $82.7 billion by 2027, with a CAGR of 3.4%.
When Anusha was asked about the future of new startups and their future, she said, “Including our Wrapping Happiness young entrepreneurs are eyeing to enter tier II and tier III cities. Besides this, they are talking to manufacturers and artisans to drive Indian culture and heritage to the cities and provide a sustainable income to them.”
“Startups are also bringing new innovation and tech in the industry easing the last mile delivery and proper client service,” she added.