GIFT-GIVING is an age-old tradition that brings joy, builds relationships, and spreads love, but in today’s fast-paced, digitally driven world, the way we exchange gifts has undergone a remarkable transformation.
People have chosen to say goodbye to the days of rushing to the store, frantically searching for the perfect gift, and standing in long checkout lines.
Thus, the rise of online gift shopping has not only changed the gifting experience but has also given new opportunities to retailers.
To delve deeper into this evolution, let us explore how digital gifting has transitioned from being a passing trend to becoming a global sensation.
Effortlessness and Versatility
People are increasingly drawn to digital gifts due to their convenience and versatility. In 2022, the U.S. saw 268 million online shoppers, a number expected to rise to 285 million by 2025(1).
This surge in popularity is attributed to digital cards, which offer endless gifting possibilities, especially for last-minute shoppers.
Additionally, the growth of online shopping is driven by the increasing influence of social media and the popularity of subscription services.
For example, research shows that retail e-commerce sales have surged, with the Philippines and India experiencing a 26% increase, while Indonesia, Vietnam, and Thailand have seen growth rates of 23%, 19%, and 18%, respectively.
Thus, as studies show, Southeast Asian countries have witnessed significant growth in retail e-commerce sales, indicating a global trend towards online shopping(2).
Customisation
Another key advantage of digital gifting is the ability to customise the gift-giving experience. With a wide range of options for personalisation, it allows people to add a personal message, choose from various designs, and select themes tailored to specific occasions. Whether it is a birthday, anniversary, or holiday celebration, digital platforms let you shop for the perfect gift as per the recipient’s preferences and the event’s atmosphere.
This personal touch enhances the emotional value of the gift and shows that you have put thought into making it special for the recipient.
Thus, customised gifts are so much more than just a token gesture.
Moreover, according to research, when someone receives a personalised gift, there’s a 55% higher chance that they will keep it compared to non-personalised gifts(1).
Hassle-free utilisation
Retailers must recognise the importance of ensuring a seamless experience for customers when it comes to using their digital platforms for online gifts.
They should prioritise compatibility with popular mobile wallets and payment platforms, making it effortless for recipients to shop online.
Moreover, innovative technologies like barcode scanning and QR code integration can further simplify the process, ensuring that recipients can enjoy their online shopping without any hassle.
This level of convenience is made possible by the continuous adaptation and integration of new technologies.
Additionally, online shopping also depends on the ratio of young and old people because new generations are more tech-savvy and are more likely to buy things online than offline(2).
Information-powered observations
The digitalisation of gift-giving offers retailers a chance to gather vital customer data.
By tracking purchasing patterns linked to their accounts on gifting apps, retailers can gain insights into consumer preferences.
This data helps with personalised offers, tailored marketing, and eventually increased customer loyalty and revenue.
With the help of this data, retailers can further make informed decisions about customer’s product choices and improve their shopping experience with amazing promotional deals for occasions.
For instance, during the holiday season in the US, approximately 36% of consumers actively seek inspiration for gift ideas on retailers’ websites(3).
Armed with such insights, retailers can curate their digital platforms to showcase relevant and trending gift options, effectively capturing the attention of potential buyers.
Elevating customer involvement
According to estimations, there are currently between 12 and 24 million online retailers in the world(2).
In the realm of digital gift-giving, retailers have a unique opportunity to enhance customer engagement and nurture enduring connections.
Leveraging the potential of digital platforms, retailers can introduce personalised promotions tailored to individual customer preferences.
For instance, research findings indicate that 58% of women would love to receive jewellery as a gift(3).
Armed with this knowledge, retailers can strategically tailor their digital offerings to cater to the desires of their target audience.
Furthermore, the capability to dispatch timely reminders and notifications on digital gifting apps ensures that the recipient won’t forget about the gift, encouraging their return visits to the retailer online.
Through this dynamic approach, retailers can not only thrive in the digital age but also forge lasting relationships with their valued customers.
So, in the age of digital gift-giving, we have witnessed a profound transformation in the way we exchange tokens of affection.
This evolution has resulted in unparalleled convenience, personalisation, and flexibility. As digital sales continue to skyrocket, retailers stand at a crossroads, where they must provide seamless experiences.
Doing that will make it easy for them to thrive in this dynamic landscape with customer-centric strategies.
As a whole, the digital revolution in gift-giving is not merely an option; it has given a huge comfort to people and become an obligation for retailers that not only want to survive but flourish in this ever-evolving industry.
Source:
(1) https://giftrabbit.com/gift-industry-statistics-and-facts
