AI-aided Gifting, Self-love Light up Zoomer Diwali

For Mumbai designer Radhika Chudasma, 24, choosing a gift can begin with feeding someone's social media profile to a chatbot to generate specific suggestions.

"Our generation looks at personalising gifts to the extent of hyper-customisation using AI," she said. "For instance, even for corporate gifting, we send the LinkedIn or Instagram profiles of the person to AI chatbots, asking gift ideas. We also look at products that add value instead of fancy, over-decorated pieces meant only for show."

Chudasma underscores a rising trend among Gen Z's to give festive gifting a personal makeover, choosing artisanal products, wellness hampers and gifts matched to recipients' interests, while also adding themselves to the shopping list. These shoppers are feeding their recipients' social profiles into AI for suggestions. This is helping support small businesses while quick commerce is getting a heft due to demand for last-minute deliveries.

A Rukam Capital-YouGov study of 4,002 respondents aged 18-29 across 18 states captures these impulses. As much as 60% of the respondents spent more during festivals, 74% buy gifts for parents and family, and around three in ten self-gift. One in four tapped AI for gift ideas and 41% used online search.

"Nearly three in ten respondents buy gifts for themselves, showing how personal indulgence is becoming part of festive consumption alongside gifting for family and friends," said Archana Jahagirdar, founder and managing partner at Rukam Capital, a Delhi-based early stage venture capital firm.

The study also pointed to a preference for youthful, culturally contemporary startups.

"We are seeing greater interest in healthier snacking, homegrown brands, and new interpretations of familiar Indian products, including regional specialities and fusion mithai," said Jahagirdar.

For gifting businesses, the opportunity spans from finding new products to changing how familiar ones are selected, presented and delivered.

Getting Personal

At online gifting and retail platform IGP, founder and CEO Tarun Joshi found younger customers select personalised mugs, tumblers and photo or designer cakes, with average order value of Rs 1,000-1,200.

"For Gen Z, personalisation goes beyond names and photos," said Joshi. "It's more about choosing gifts that reflect a person's interests, personality and sense of style."

Options include themed 3D caricatures, desk accessories and home décor. That distinction is also shaping briefs at The Gift Concierge, a gifting consultancy. Founder Vedika Shah said while older customers often specify quantities, budgets and standard contents, the younger clients describe the recipient.

"Gen Z briefs by mood and person: 'my mother loves her morning tea ritual; my brother is training for a marathon'," said Shah. "Their per-gift budgets are often smaller, but they gift fewer people and invest more thought in each one."

The interest extends to provenance. "The question we hear most is 'what's the story behind this?' They want to know who made it, where the material comes from, and whether the recipient will actually use it," said Shah.

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