Smaller cities took the lead over bigger ones in terms of demand for products for gifting during Valentine’s Week, according to industry executives. These cities also witnessed a rise in average ticket size of purchases.
Valentine’s Week starts with Rose Day on February 7 and ends with Valentine’s Day on February 14. The period typically witnesses high sales of products for gifting. Companies attempt to tempt customers through aggressive marketing campaigns and offers.
ALSO READUnilever to step up premium push in India: Global CEO
The celebrations during the week were mainly limited to bigger cities until some years ago, now people in the smaller cities are also increasingly celebrating with things like expensive gifting and fine dining.
“Valentine’s sales in Tier 1 cities have been lukewarm this year, but Tier 2 and 3 cities are showing growth compared to last year,” said Akhil Jain, executive director at Jain Amar, which sells apparel under the brand Madame.
“This year, smaller cities have shown a strong uptick in sales, signalling a shift in purchasing behaviour,” said Vidita Kochar, co-founder of lab-grown diamond jewellery brand Jewelbox.
The increase has been larger in tier 2 cities at around 10-15%, as compared to tier 3 cities which saw an increase of 7-10%.
According to Pushpa Bector, senior executive director of DLF Retail, the demand has been high for fashion, jewellery and beauty gifting.
“This year we also believe that F&B experiences will be the main differentiator,” Bector said.
The customers in smaller cities have also increased their average ticket size with costlier and customised purchases.
“Tier 2 & 3 cities are increasingly opting for premium gifting, reflecting a shift toward more extravagant and meaningful gestures,” said Pawan Gadia, global CEO of gifting brand FNP.
“Interesting to note is how Tier 2 & 3 cities are mirroring metro trends, with customers opting for premium and bespoke gifting options,” Gadia added.
Chocolate company Laderach also said that its curated gift hamper offerings have generated high customer interest this year.
“Our customers are opting for higher-end selections, with the average sale price of Rs 6,600,” said Sanskriti Gupta at Läderach India.
ALSO READQSR firms push expansion despite weak demand
Kochar said the rise in demand has largely been due to rising disposable incomes and greater awareness in smaller cities.
» Read More
