Growing 50% YoY, Rs 400 crore gifting platform IGP splurges Rs 83 crore on marketing

New Delhi: Whether you’re celebrating a festival, a personal milestone like a birthday or anniversary, or a cherished moment such as a promotion or your child’s six-month milestone, the International Gifts Platform, IGP, ensures that every occasion is met with thoughtfully curated gifts. 

The brand recently launched “Amazing Gifts, Samay Par” a year-long campaign consisting of eight ad films. The first ad, set in the Ice Age era, celebrates the festival of Raksha Bandhan while emphasising the value of timely gifting. It humorously reimagines Raksha Bandhan, showcasing different sibling bonds and highlighting that everyone deserves unique love and appreciation with IGP delivering #AmazingGiftsSamayPar. The campaign has been doing the rounds on social media recently as it resonates with the millennial voice. 

The Raksha Bandhan ad: 

The second ad film has a comical twist by setting a birthday party in the Stone Age. It humorously reimagines the age-old challenge of finding the perfect birthday gift, showing that even in primitive times, choosing the right gift was crucial. The campaign highlights that a thoughtful gift, given at the right time, can leave a lasting impact—a theme central to the campaign. 

The ad takes us way back to the Stone Age, where even the ancient humans knew that a birthday bash was only complete with the perfect cake. A young cave boy surprises his crush with a delicious cake and blooming flowers from IGP in a world where fire is a luxury and stone tools are cutting-edge. The cake becomes the talk of the tribe, winning over every cave dweller at the party. 

The Stone Age Birthday ad:

Providing an insight into the nitty-gritty of the campaign, Tarun Joshi, Founder & CEO of igp.com, said, “The campaign involves an upcoming series of eight films, launching over the year, revolving around the theme that ‘time is the enemy’ in gifting. Rather than using a human protagonist, the campaign adds a human touch to time itself. Starting from the Ice Age, the films journey through various eras, emphasising on-time delivery for special occasions.”

The festive season in India witnesses an increase in consumer spending. Commenting on the significance of the festive season, Joshi said, “While traditional festivals remain a substantial part of our business (approximately 30-40%), we also thrive during other monthly occasions. Our brand plays a pivotal role in celebrating birthdays, anniversaries, house-warming, and more. 

Whether it’s a time-honoured festival or a personal milestone, the platform annually attracts approximately 60 million unique visitors. While traditional festivals account for around 30–40% of this traffic, other occasions also contribute significantly. Whether it’s a time-honoured celebration or a personal milestone, our brand remains a go-to choice for making moments special.” 

While the CMOs are primarily responsible for the marketing exercises carried out by the brand, Joshi, being a co-founder, is heavily involved in the marketing of the brand.  

Sharing the difference in outlook between a CMO and a co-founder, Joshi said, “As a founder, your understanding of the brand is more intimate; you understand consumers and their needs better than a CMO. You can bring insights into every facet of marketing, from performance to brand campaigns. Your hands-on involvement ensures that decisions align with the brand’s ethos.

Having a broader lens that extends beyond marketing allows you to consider touchpoints that others might overlook. Details from product packaging to delivery interactions each contribute to the overall brand experience. Even seemingly small choices, like the bag used by delivery agents, play a crucial role and a co-founder is more aware of these insights.” 

Shedding light on the marketing mix used for the dissemination of campaigns, Joshi said, “Being a digital-first brand, our discovery predominantly happens through digital channels. Approximately 70% of our budget is allocated to performance marketing, while the remaining 30% focusses on brand initiatives. Over the past three years, we have gradually shifted more resources toward brand building. 

Starting at 10%, we slowly increased our brand spending to now 30%. Our target mix aims for a balanced 50-50 between performance and brand efforts. Connected TV (CTV) plays a crucial role in engaging premium customers. Our marketing budget has grown annually by approximately 25-30%, consistently driving revenue growth in the range of 45-50%.” 

With an annual marketing budget of approximately “$10 million,” IGP has seen its business grow by “nearly 50% year-on-year.” Joshi mentioned that the marketing budget has seen a similar trend of 25-30% growth.”  

Adding more perspective to his argument, Joshi said, “While the percentage of spending relative to sales decreases as loyal customers contribute to growth, we still see an annual increase of around 40 to 50%. Regarding media choices, we find a balanced approach effective. While connected TVs offer advantages, the rapidly expanding digital ecosystem allows us to maximise get the maximum bang for our buck.” 

Diving deeper into the revenue stream of the brand, Joshi said, “As a B2C startup, our annual revenue stands at approximately Rs 400 plus crore with consistent 50% growth. While repeat customers contribute significantly, acquiring new customers remains marketing-driven. Balancing profitability and spending, we focus on awareness, consideration, and purchase. New customer acquisition is almost entirely marketing-driven, while retaining old customers involves a blend of service and targeted spending. Our marketing budget accounts for 15% of our revenue.” 

When it comes to a D2C business, there lie various friction points ready to blemish the consumer experience. While most D2C brands take you to a chatbot as a solution to the impaired consumer experience, IGP stands out by not using chatbots for resolving customer queries. 

From the horse’s lips itself, Joshi said, “In our commitment to customer care, we prioritise human interaction over bots. Even during busy periods, we encourage people to reach out directly. While bots have their place, we believe human intervention better understands issues and provides effective first-call resolutions.” 

Influencer marketing is one of the go-to ways for brands to add a human touch to their endorsements, making them seem authentic. Reflecting on the same, Joshi said, “Currently, influencers account for approximately 10% of our marketing spend. Here’s the breakdown: around 30% goes to macro-influencers, another 30% to mid-level influencers, and the remaining balance covers other aspects.”

Every brand moulds its marketing strategy to sit right with the changing consumer dynamics. In 2023, IGP underwent rebranding.  

Expanding his thoughts on the need for rebranding, Joshi said, “Our rebranding effort involved consolidating all brand elements and creating a cohesive approach. While we cater to celebrations and occasions, our consumer data reveals that we ultimately cater to enhancing human relationships. Whether sending a gift, choosing a product, or celebrating at home, we bring people together—family, neighbours, and friends. In these seemingly transactional moments, our core insight centres around fostering connections.” 

E-commerce platforms like Amazon and Flipkart also have product listings that can be given as a gift to your loved ones. The question that comes to the forefront is how IGP manages to carve a niche for itself in the gifting arena.  

Citing the example of Rakhis, Joshi presented a response to the question stating, “For festivals like Rakhi, we carefully design the top 2000+ Rakhi & hamper styles. From thread colour to themes, strength, packaging, and presentation, every detail matters. Our beautiful hampers—akin to a 100 rupee note in a 50 rupee lifafa—include sweets, Rakhi, dry fruits, chocolates, and thoughtful touches for siblings. This comprehensive approach enhances the appeal and marketability of our offerings.” 

When asked if IGP is open to the idea of letting other brands advertise on its platform, here’s what Joshi had to say: “Our platform offers a curated experience, distinct from everyday grocery shopping. We avoid distracting consumers with additional marketing campaigns. Imagine walking into a beautiful boutique—you want to engage with it, not be bombarded with unrelated suggestions. Instead, we collaborate closely with external brands through collaborations and joint events.”

Coming onto aspirations Joshi wants to scale IGP’s operations to 50 cities soon. In the words of Joshi, “We currently operate in 26 cities, with plans to expand to 50 more cities soon. Our delivery model involves hand-delivering products, ensuring a personalised touch. Unlike traditional courier services, our delivery partners engage with customers, seeking feedback. Recently, we expanded to Dubai, and our international growth strategy includes expanding our operations in Gulf Cooperation Council member countries and countries in Southeast Asia.” 

Wrapping it up, Joshi shared his valuable learnings over the years. “Over the past five years, the marketing landscape has undergone significant transformations. As founders, an active involvement in brand building and marketing is crucial. The dynamic nature of marketing demands intuition-driven decisions. No longer can it be approached transactionally—allocating budgets to predefined channels. Staying informed and engaged is essential. The rapid evolution of marketing forces close interaction and adaptability,” he noted.