Friendship Day 2024: Gifting Industry Sees Significant Growth Driven by Gen Z and Millennials
News Mania Desk/Agnibeena Ghosh/4th August 2024
As Friendship Day 2024 approaches, the gifting industry is experiencing remarkable growth, driven largely by the preferences of Gen Z and millennials for personalized and unique gifts. Despite the rise of digital communication, with quick texts and social media posts often replacing traditional gifts, companies in the gifting sector are reporting a significant uptick in sales.
The trend towards personalized gifting is especially strong this year. According to Varun Moolchandani, Executive Director of Archies, sales for Friendship Day are projected to increase by 50-60% compared to regular periods. This notable rise in demand highlights a shift in consumer behavior, with people increasingly opting for customized gifts that convey a personal touch.
Avi Kumar, Chief Marketing Officer of Ferns and Petals (FNP), echoed similar sentiments, noting that while many people do not plan for Friendship Day well in advance, there is a marked surge in sales during the final days leading up to the occasion. Kumar mentioned that sales experience a substantial boost, around 50-60%, in the last two days before Friendship Day, a trend that the company anticipates will continue this year, leading to a double-digit growth overall.
The shift towards personalized gifts has been a significant factor in this growth. Customized hampers and gifts have become increasingly popular, as people seek to give something more meaningful than a simple message or social media post. Ferns and Petals has noted a trend where, despite initial delays in planning, customers are increasingly choosing to make last-minute purchases, driving up sales just before the event.
Archies has also seen a notable impact from this trend. In 2023, the company reported net sales of ₹196.98 crore around Friendship Day, with customized mugs alone generating sales of ₹11.48 crore. The company experienced a 60-70% growth in sales post-COVID, underscoring the enduring appeal of personalized gifts even as the pandemic’s restrictions have eased.
The changes in gifting trends have been particularly pronounced since the pandemic. Before COVID-19, people often relied on online gifts for those far away, while opting for physical gifts locally. However, the pandemic has shifted this pattern, with a greater emphasis now on personal touches and customized items, regardless of the recipient’s location.
As the gifting industry continues to evolve, companies like Ferns and Petals face the challenge of constantly innovating to meet the growing demand for unique and personalized gifts. The ability to offer distinctive and thoughtful options remains crucial to capitalizing on the increasing trend of customization in gifting.
In summary, Friendship Day 2024 is set to see a significant boost in sales for the gifting industry, driven by the preferences of younger generations for personalized and meaningful gifts. As the industry adapts to these changing trends, companies are preparing for a busy period of heightened consumer activity and increased demand for customized offerings.
