Retail Renaissance: How legacy gifting brands are winning Gen Z and Alpha

A decade ago, had someone pondered the future of gifting, the response might have included familiar traditions–cards, teddy bears, and keepsakes exchanged in physical stores. But at present, the landscape has evolved manifold, particularly with the growing influence of Gen Z and Alpha.

What’s more exciting is to witness how these young consumers have re-shaped the very meaning of gifting. This new generation is bold, conscious and tech-savvy. And their celebrations aren’t restricted to dates on the calendar or physical exchanges; for them a gift is more than an item–an experience, a statement of values, and often, a digital moment shared promptly with the world. They view gifting as a narrative – something that tells a story about who they are, what they stand for, and what they value in others. 

Nevertheless, numerous brands were slow to identify and adapt to this shifting trend. By the time they acknowledged the varying preferences of young consumers, the landscape had already witnessed tremendous change. What was once a foreseeable pattern of consumer behaviour soon became volatile as the younger generation re-modelled their expectations of gifting. This delay in understanding also meant that some brands struggled to tap into consumer demands, while others were able to pivot and stay in tune with the times.

The brands that thrived were those that heeded their audiences closely, embraced experimentation, and responded with agility. For some, the turning point came when it became evident that while there was a strong and loyal customer base among millennials and older generations, Gen Z was on the lookout for something far more nuanced—authenticity, personalisation, and alignment with their values. This change prompted a critical re-thinking of how and where to engage with this emerging audience.

As Gen Z thrived on digital spaces, brands subsequently shifted to meeting them there. This further resulted in considerable investments for brands in the attempt to amplify their digital footprint, nurture partnerships with new-age platforms and design smooth online-to-offline experiences. The objective was clear: to make gifting not just convenient but also meaningful, relevant, and exciting for this new generation of consumers.

Following this course, social media became the new frontier, influencers became the new word-of-mouth, and memes became the new marketing language. However, regardless of the incontestable pull of the digital world, a noteworthy changeover was observed - young consumers still craved real-world touchpoints but with a twist. For them, a store visit was not a transactional moment but a perspective for discovery, engagement, and experience. They were open to considering spaces that paired shopping with lifestyle, stores that doubled up as social hubs and cultural sites.

This shift inspired many brands to create retail environments that seemed fresh, immersive, and worthy of sharing. Concept stores, pop-up experiences, and tech-integrated in-stores became prevalent in order to substitute for conventional formats. Such new-age spaces allowed users to interact with products in creative, personalised ways, from AR mirrors, QR-code gift recommendations to on-the-spot digital customisations.

Another key lesson that emerged was that while brand legacy was valuable, it was not enough. Rather, it’s all about staying relevant, and that must be earned each and every day.

With Gen Alpha starting to come of age, the emphasis has now shifted in favour of aligning with what matters the most to this new generation: sustainability, technology integration and personalisation. They are digital natives with great ecological consciousness, expecting brands to walk the talk when it comes to social and environmental responsibility.

In light of this, to stay ahead of the curve, brands must concentrate their efforts on being experimental with phygital (physical + digital) concepts, enhancing their commitment to products that are led by social impact.

Gifting is steadily moving into a channel for advocacy and identity, be it a donation in someone’s name, a sustainably made item, or a digital token with practical impact.

Hereafter, the larger mission for brands would be to preserve the emotional core and heritage that has long defined them, while consistently changing the way it is expressed to the world. Gifting is not merely about what is given, but how it is given, why it is given, and how it makes the recipient feel.

(Varun Moolchandani is the Executive Director of Archies, a retailer specialising in greeting cards and gifts.)