The rapidly growing corporate gifts market is expected to reach $312 billion by 2025 according to new research from Coresight Research and GiftNow
Corporate gifts play a central role in improving professional relationships and can be an indispensable tool for staying in touch with employees, customers and partners. The study reveals external factors impacting the corporate gifting market in terms of gifting frequency and spending, including changed work patterns, changing gifting behavior and emerging gifting occasions such as than the use of corporate gifts to support DEI programs.
Main research results
Sixty-one percent of corporate gift shoppers in Coresight’s survey said they had changed their work pattern since the COVID-19 outbreak. Of these, 91% expect the frequency of corporate giving to increase (61%) or stay the same (30%). Additionally, 89% of all corporate gifting providers expect gifting frequency to increase (50%) or stay the same (39%) post-pandemic.
The Coresight study also found a shift in corporate gifting behavior, indicating it’s not limited to the holiday season. The top three gifting occasions cited by respondents indicate that corporate gifts are a year-round opportunity to build and strengthen relationships, which is critically important in the new work environment.
- Employee Appreciation/Milestone (66% vs. 64% in 2021)
- Appreciation from existing customers/partners (52%, compared to 49% in 2021)
- Holidays (49%, compared to 55% in 2021)
Additionally, organizations provide fewer but higher value gifts, with more respondents citing spending $100 or more on one-to-many corporate gifts than in 2021.
- $100–$125 (18%, compared to 17% in 2021)
- $125–$150 (15%, compared to 11% in 2021)
- $150+ (9%, compared to 6% in 2021)
Companies that offer gifts plan to spend more at the higher end of the order value spectrum, $4,000 or more for the average order amount for one-to-many gifts.
- $4,000–$5,000 (15%, compared to 13% in 2021)
- $5,000 and over (13%, up from 9% in 2021)
Higher value spending is another market growth driver and indicates a more mature understanding of how to use corporate gifts to engage recipients with quality versus quantity gifts.
Corporate Gifts for DEI
DEI initiatives emerge as an important priority for organizations to invest in corporate gifts for 75% of respondents. There are many opportunities throughout the year for HR leaders to use gifts to recognize and celebrate diversity, such as Asian American and Pacific Islander Heritage Month, LGBTQ+ Pride and Black History Month, among others. Forty-five percent of respondents already use donations to support DEI programs, while 30% plan to support DEI with donations in the future.
“The corporate gifts market continues to experience strong growth in volume and value across organizations,” said Raccah bet, Senior Vice President and General Manager, GiftNow. “It’s exciting to see how the 2022 survey results reflect the more intentional approaches organizations are taking in their corporate gifting efforts to help build and strengthen relationships with employees, customers and the partners.”
Corporate Gift Challenges
Organizations demonstrated a more sophisticated understanding of how to use corporate gifts, but respondents cited persistent challenges related to limitations in the types of gifts they can offer as well as flexibility and convenience. scalability of gift programs. Forty-eight percent of respondents manage end-to-end corporate gifts internally without a gifts platform. Among the top issues cited by respondents as “very challenging” for those managing their own corporate giving efforts:
- Inability to purchase gifts from multiple brands/retailers (33%)
- Limited choice attributes such as color and size (32%)
- Management of inventory, storage and shipping of gifts (30%)
- Limited product range (28%)
Fifty-two percent of respondents have outsourced some or all of their corporate gifting needs. Outsourcing to a gifting vendor represents an opportunity for organizations to centralize and streamline corporate gifts and address the challenges cited above. Outsourced gifting also enables organizations to alleviate friction points such as inventory management and shipping, reduce costs, and provide more engaging gifting experiences, reducing the number of issues cited as “very difficult”.
“The corporate gifting market is growing at an accelerating rate. One of the most interesting findings from this study is the use of corporate gifts as a way to support diversity, equity and inclusion initiatives (DEI),” said Deborah Weinswig, CEO and Founder, Coresight Research. “It is very encouraging to see that approximately three-quarters of corporate gift donors already support or plan to support DEI through corporate gifts.”
The most popular gifts
The study indicates that physical (53%) and digital (50%) gift cards will be the most popular corporate gift this year. Gift baskets (48%), company-branded products (46%) and experiences like movies and sporting events (39%) round out the top five.
Find out more with the full report
The report details six key areas to focus on for Coresight’s corporate giveaways and strategic recommendations.
To download the full study from Coresight Research, Click here.
Coresight Research conducted an online survey of 300 corporate gift shoppers in the United States in April 2022 and May 2021. Respondents represent industries such as retail, real estate, manufacturing, and healthcare, among others. The study looked at both one-to-one and one-to-many corporate gifts.
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About Coresight Research
Coresight Research is a research and consulting firm specializing in retail and technology. Founded in 2018 by a leading global retail analyst Deborah Weinswigthe company is headquartered at New Yorkwith offices at London, Lagos, hong kong, Shanghai and Mangalore (India). The company provides data-driven analytics and strategic advice to clients including retailers, brands, technology companies, accelerators, and more. In addition to being recognized for the breadth and depth of its research, Coresight Research is known for its expertise in China market, helping customers enter the market and build cross-border e-commerce strategies. Coresight Research is also known for its Innovator Intelligence Platform, comprised of an extensive network of tech entrepreneurs that it actively cultivates through events, mentorship, and regularly updated reporting coverage. For more information, visit www.coresight.com.
Coresight press contact:
Erin Hansonfor GiftNow