A recent study conducted by Coresight Research and shared by Promotional Products Association International, revealed that corporate gift giving in the United States is tracking to reach over $300 billion by 2024, and this figure is steadily increasing. This discovery prompted further investigation into the purchasing habits associated with corporate gift-giving and the motivations behind it. The findings have been analyzed below, broken down according to what PPAI has referred to as “The 5 Ws.”
Who?
Looking back to 1991, fewer than 50% of all businesses chose to partake in corporate gift giving. Fast forward to the present day, and this number has surged to an overwhelming 84%. It appears that this practice is increasingly becoming the “norm,” with many now viewing it as a common courtesy. It’s worth noting that the type of business significantly influences these gift-giving tendencies, with government and education-based businesses being less inclined to invest heavily in corporate gifts.
What?
But what exactly constitutes a corporate gift? A corporate gift is a customized gift intended for personal use, given to employees, clients, and business partners to foster goodwill and strengthen relationships. This definition is widely accepted by both buyers and distributors.
In terms of monetary value, the study found that most respondents cited spending between $25 and $125 per item on corporate gifts. Around 77% of respondents spend within this range for one-to-one corporate gifting, while 71% of respondents cited spending in this range for one-to-many corporate gifts.
What kind of gift is most appealing? The study found that most respondents are looking for brands, as “there has been a pivot to perceived value.” Everyday branded products, gift baskets, edibles and apparel still represent large segments of the marketplace, but electronics and elevated branded merchandise are on trend.
When?
Logically, the primary time of year for exchanging business gifts is during the year-end holidays. However, many businesses capitalize on the relationship-building potential of gift-giving year-round, seizing opportunities on secondary holidays and special occasions to provide additional personalized gifts. The study participants identify employee and client appreciation gifts and holidays as the top three occasions for gifts given in terms of their frequency.
Why?
Corporate gifting is attractive for several key reasons. It’s an effective way to build and maintain business relationships by showing appreciation and goodwill. Secondly, it’s a means to express gratitude, which is significant in the business context. Furthermore, corporate gifting can enhance employee and client retention and even lead to new business or referrals. In an increasingly digital world, custom gifts offer a tangible touch point, emphasizing a company’s commitment to meaningful connections.
Worth It?
Are those who provide business gifts satisfied with the value of their investment? One significant reason behind the upswing in corporate gift expenditures is the redirection of funds from in-person events to promotional products. Research by PPAI reveals that 79% of consumers feel appreciated when they receive a promotional product, and 87% keep promotional products for more than a year. Maintaining a connection to those whom you are gifting to, by providing considerate touch points throughout the year, has become a preferred approach.
The realm of corporate gift-giving in the United States is experiencing notable growth, with business gift givers increasingly viewing it as a valuable investment. The decision to shift marketing dollars from in-person events to promotional products has emerged as a driving force behind this surge in corporate gifting expenditures. By offering meaningful touch points throughout the year, organizations are finding innovative ways to maintain vital connections with employees, clients, and business partners. This shift in strategy underscores the growing importance of custom corporate gifting as a means of fostering goodwill and strengthening business relationships in an ever-evolving landscape.
