Coresight Research is a retail and technology-focused research and advisory firm. Deborah Weinswig, a prominent global retail analyst, founded the company in 2018 in New York. The firm provides clients, including retailers, brands, enterprise technology companies, and accelerators, with data-driven analysis and strategic advice.
Coresight Research surveyed 300 corporate gift buyers in the United States and found that the corporate gifting market will grow from $258 billion in 2022 to $312 billion in 2025, a CAGR of 6.5% over the next three years. The following factors are certain to increase corporate gifting opportunities:
(A) Shift To A Culture Of Remote And Hybrid Work Due To Covid-19
With the emergence of hybrid working models caused by the pandemic, an increasing number of employees are now working from home, in some cases permanently. In addition, the number of traditional holiday parties, dinners, and outdoor corporate events has been drastically reduced. In turn, these tendencies have increased the frequency of corporate gifts, which is frequently viewed as a substitute for the aforementioned activities.
58% of participants plan to either increase their gifting budgets or make no changes to their current gifting budgets. Since the outbreak of covid-19, the reduction in operational expenses had a positive effect on the budget allocations for corporate gifts.
(B) Initiatives Promoting Diversity, Equity, And Inclusion
Seventy-five percent of respondents cite DEI (Diversity, equity, and inclusion ) initiatives as an important priority for organizations investing in corporate gifts. HR leaders have numerous opportunities throughout the year to recognise and celebrate diversity through gifting, including Asian American and Pacific Islander Heritage Month, LGBTQ+ Pride Month, and Black History Month, among others.
45% of respondents are currently utilizing gifting to support DEI programmes, while 30% intend to do so in the future.
( C ) Corporate Gifting Occurs Year-Round To Foster Relationship Building
Relationship Building is essential to the success of any organization, and for the same reason, communication is necessary. Corporate gifts are tokens of appreciation, acknowledgement, and encouragement for all business relationships. To stand out, businesses must use every opportunity to give corporate gifts that leave a lasting impression on the recipient.
In Addition To Holidays, The Following Events Make Corporate Gifting A Year-Round Endeavor
- Prospect client cultivation and engagement
- For Events (conferences, exhibitions, webinars, etc.)
- Appreciation for present clients/partners
- Employee recognition or achievement.
In Addition To Fostering Relationships, Corporate Gifting Benefits In:
- Maintaining employee morale during challenging times
- Digital conferences instilled with gratitude
- Improved sales
- Lead development
- Increased staff retention
- Opportunities of brand recognition and new product launches for gifting retailers.
Most Popular Gifts – Profitable Product Lines For Opportunistic Retailers
The study shows that gift cards will be the most popular corporate gift this year, both in physical form (53%) and in digital form (50%). Five of the most popular types of employee rewards involve corporate gift baskets (48%), company-branded products (46%), and experiences like going to the movies or a sporting event (39%).
Corporate Gifting Challenges- Pool Of Business Ideas To Opportunistic Retailers
While businesses have shown a more nuanced understanding of how to use corporate gifting, respondents noted ongoing difficulties with restrictions on the types of gifts they can give and the scalability of gifting programmes. 48% of those surveyed manage end-to-end corporate gifting internally without the use of a gifting platform. Respondents cited the following as “very challenging” for those who manage their own corporate gifting efforts:
- Unable to buy gifts from multiple brands/retailers.
- Limited options including colour and size (32%).
- Managing inventory, storage and shipping of gifts (30%).
- Limited product selection (28%).
- Gift quality is of the utmost importance to gift purchasers, and there are few sellers who offer such products at reasonable prices, convenient delivery options, and in impressive packaging.
- Insufficient innovation in the gifting industry.
Conclusionary Note To Retailers
52% of respondents outsourced some or all of their corporate gifting requirements. Outsourcing to a gifting provider affords organisations the chance to centralize and streamline corporate gifting and address the aforementioned challenges.
Whether businesses choose to outsource or not, the retailers should work on all challenges in terms of quality, delivery services, diverse product selection, innovative gifts, and inventory management. Once brand awareness is firm and product lines are top-notch, nothing can hinder their success in this billion dollar race.