The Business Behind Valentine’s day
Valentine’s day is unarguably the most awaited event among the youth all over the world. But it hasn’t always been the same. From its origins as the Feast of Saint Valentine in 496 AD (in remembrance of the Saint Valentine of Rome) to becoming a commercial festival of gifts and surprises, the holiday has undergone dramatic changes. Today, It would be difficult to imagine Valentine’s Day without roses, cards, gifts, chocolates, and a lot more. So how did a humble feast turn into the huge business that it is now? How do Corporates make out of our sentiments on this day? Let’s find out.
The turning point in the evolution of valentines day as a commercial festival was laid down by an American firm — Hallmark Cards in 1913 when it first began mass-producing Valentine’s day cards. Since the success of Hallmark Cards, many players have come into this industry and made a fortune for themselves out of this opportunity. Interestingly, Indians have almost doubled their Valentine’s Day spending over the last 8 years and are expected to spend around Rs 30,000 crore this year. So how and where do we spend this huge amount?
How Indians Spend on Valentine’s Day
When it comes to Valentine’s day shopping, the most bought products are flowers, chocolates, shoes, and apparel. This year, on the occasion of Valentines’ Day, Indian farmers will export roses worth Rs 30 crore to countries like UAE, UK, Thailand, China, and more. Interestingly, 60% of all the sales are done in the 5 days leading up to 14th February. Traveling with a loved one to offbeat destinations has also become a fad among millennials. Expedia, a travel agency company, saw a 25% rise in bookings for destinations like Goa, Kerala, Maldives, etc during Valentine’s week.
Who spends more on Valentine’s day?
According to a survey of economic times, on average men spend about 1.5 times the money that women spend. Among the generations, millennials will take the brunt of Valentine’s Day spending, expected to spend about 70 percent of all the spending. Intriguing, it was found that rural Indians spend more money on valentine’s day as compared to urban Indians. Another interesting finding was the fact that Hong Kong had the highest per capita expenditure on Valentine’s Day gifts, followed by the UK and Ireland, respectively.
How Corporates are planning for Valentine’s day
Businesses are doing everything possible to ensure that this day is as profitable as possible for them. In the weeks leading up to Valentine’s Day, businesses start offering discounts on everything you can think of, whether it’s chocolates or flowers or even special offers for couples at cafes and restaurants. E-Commerce Giants like Amazon and Myntra, are offering discounts of up to 70% on gift items and apparel. Tech Companies like Samsung and Outlets like Croma are also discounting their prices on giftable gadgets like smartwatches, smartphones, etc…
The Rise of Dating Apps
Valentine’s Day may seem like a day reserved for couples, but it also brings opportunities for singles, and dating apps have stepped in to help singles find dates. Active users of these apps have skyrocketed thanks to Covid. For example, OkCupid saw an astounding increase of 700% in dates in the second quarter of 2020, at the same time tinder recorded the highest number of swipes in a single day — 3 billion. According to a survey by YouGov, around 22% of its respondents go on dating apps to find a date on valentines day.
I would like to conclude by saying that as Indian society becomes more and more open about the concept of dating, the markets and industry around it will grow exponentially. So, to end on a lighter note, even if you have no plans for Valentine’s Day, you should not feel sad, as you can make good money from this day by starting your startup and solving the problems of the rapidly-growing market.
Credits: Shreyas Sahoo — Team E-Cell ABV-IIITM Gwalior
