Your guide to how the ever-increasing Corporate Gifting Market Value entails a strong promise for the future
We all know how popular the gifting culture is in India. Here, gifting is a way of showing affection and gratitude to the near and dear ones on special occasions like festivals, birthdays and anniversaries among others.
Additionally, gifting has also emerged as a popular trend in corporate culture, more so after the pandemic. In the trending remote and hybrid work culture, most companies have included corporate gifting as an essential part of their HR strategy. Corporate gifting is an effective way for ensuring employee retention and providing them with a healthy and rewarding work environment.
In this article today, we will have a brief look at the current corporate gifting market size, how profitable a corporate gifting business is, and what is the future of the gifting industry in India. Follow through to know it all.
How Big is the Gift-Giving Industry?
According to eYantra Industries’ Corporate Gifting and trends Report 2022, currently, the market value of the Indian Gifting Industry stands at Rs 2,50,000 cores.
An Industry analysis report by Technavio states that the global gifting market was worth £46 billion in 2019. The report estimates that the market value will rise with a CAGR of 2% to reach £50.5 billion by 2024.
How much is the Corporate Gifting Market Value?
Post-pandemic, the need for corporate gifting has increased. With employees now working at hybrid or remote locations, companies need to ensure that everyone stays connected with their workplace, and finds the drive or motivation to perform well while working from home. Sending out valuable and personalised gift items to employees is a common trend now which effectively improves employee engagement.
Furthermore, B2B merchandising has helped brands personalise their gifts thus becoming a fundamental part of corporate gifting.
Not only does corporate gifting help sustain a connection between employees and the company, but it is also a great way of rewarding employees for their performance, thus ensuring their strong bond with their workplace.
Survey Report, Stats and Figures
According to eYantra Industries’ Corporate Gifting and Trends report 2022, the market value of corporate gifting in India is pinned at Rs 12,000 cores.
Coresight Research survey has revealed the estimated corporate gifting market size on a global scale. The report says that the market size of corporate gifting will see an increase from $258 billion in 2022 to $312 billion in 2025, which is a growth of 6.5% CAGR over three years.
The research further states that in the area of corporate gifts, approximately 60% of the proceeds will go to gifts that will be given to clients and partners outside of the company, and 40% will go to internal employee recognition and awards within the organisation.
The research further states that in the area of corporate gifts, approximately 60% of the proceeds will go to gifts that will be given to clients and partners outside of the company, and 40% will go to internal employee recognition and awards within the organisation.
According to the survey, there was also an increase in corporate gifting budgets, with over half of respondents affirming that their budgets had increased since Covid was introduced. It is also surprising to see that the amount spent on each gift is so high. There is a majority of corporate gift purchasers investing between $25 and $125 on a corporate gift, with a larger percentage spending between $75 and $100.
Advantages of Corporate Gifting
According to the research report by Coresight, through corporate gifting, around 80% of companies achieved ameliorated relationships and bonding with their employees and clients. Among these, 48% of companies reported that corporate gifting has substantially benefited their company’s success through improved customer loyalty, and employee retention and making the recipient feel rewarded and valued for their contribution.
There is a steep rise in the corporate gifting market value, and the growth will continue as the benefits it entails are huge and principal in determining a company’s success.
Steven Winnick, senior analyst at Coresight revealed that 7 out of 10 respondents are genuinely happy with their current corporate gifting frequency, and even want to increase it seeing the advantages it confers.
Corporate Gifting Market Competition and Challenges
The corporate gifting industry is ever-growing, hence the competition is also high. To always stay one step ahead of your competitors, first make sure that you know your competitors. Research your competitor’s strengths and weaknesses, their products and services. Learn what’s different in their marketing strategies, and what’s making them excel.
Conduct thorough market research to learn what’s trending, and what are your client’s requirements and preferences. Put your research to use by implementing effective gifting strategies and introducing unique gift ideas.
Challenges Faced by Corporate Gifting Businesses
Did you know, corporate gifting amounts to 80% of the global gifting industry? The corporate gifting market is huge, and so are the challenges. According to a report by Researchnxt, 73% of respondents believe that packaging is one of the biggest challenges that a gifting business faces. Personalization, customization and proper packaging are three significant factors for a gifting business to consider when it comes to client satisfaction.
Many brands, no matter how big they are, still lack the eye for good packaging, which in turn directly hampers the quality and originality of the gift.
In addition to this, in the gifting industry, maintaining quality, going by commitments and customizing gift items in bulk orders is still a big challenge.
Future of the Corporate Gifting Industry
Corporate Gifting and B2B merchandising has emerged as an immensely popular tool used by companies to reward their employees and clients. The corporate gifting industry will witness consistent growth in the market at an estimated rate of 2
Furthermore, gifting digital cards is a well-favoured trend that many corporate gifting companies follow. With the growth of online gift shopping each day, it is estimated that the Indian gifting industry will touch the $82.7 billion mark by 2027, growing at a CAGR of 3.4%.
Eventually, most companies are recognizing the importance of corporate gifting and considering employee and client satisfaction and retention as the foremost factors behind a successful business.
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