Remember the last time you received a personalized gift? The feeling was extra special, right? Personalized gifts are symbolic of intimate relationships and feelings that we hold close to our heart, meaning, the audience is heavily invested in the simple joys of buying and receiving gifts. No wonder, Technavio has earmarked the Global Personalized Gifts Market to grow to a mammoth USD 31.63 billion by 2021.
Gifting is an emotional decision. Often, buyers are more concerned with the quality and appropriateness of the purchase than the sticker price. When the analytical experts at Technavio pinned the CAGR of this productive industry to burn some serious rubber, they were quantifying a known fact and a cultural phenomenon- personalized gifting started with Adam and Eve, and will likely linger around till humanity is in business.
What’s Driving the Demand for Personalized Gifts?
The primary enabler of this market is the ever-growing culture of gifting and marking special occasions with symbolic representations. People love gifting to themselves as much as they do to others. This may include seasonal decorations (including decorative cups, plates, napkins, etc.), buying specialized, handcrafted pieces, or inventive gifts that are drenched in technology. Summarizing,
- Growing culture of gifting and incrementing demand for seasonal decorations.
- Innovative gifting solutions (Star Wars inspired merchandise, for the diehard fans).
- Ever improving distribution channels, retail and online.
Inventive, emotional and slotted in all price ranges, the worldwide personalized gifts market is powered by joyous occasions, friends and family- eager to appreciate love and companionship in the form of eloquent and intimately personal gifts, and of course, the patron saint of gifting himself, Santa Claus!!
The Grinch Factor- Challenges, Roadblocks and Competition
The realities of economics play a pivotal part in the case of the personalized gifts market too. Gifting is a seasonal affair, limited to the wintery holidays or such occasions as weddings, birthdays and baby showers. This seasonal fluctuation in demand can impact inventory levels and cash flows allocated to retailers.
Then there is the market fluctuation attributed to the management of inventory, supply chains and merchandising. The target audience changes its preferences frequently, forcing the retailer to correspondingly turnover his/her inventory. This puts a massive stress on the manufacturer’s supply of raw materials, quality control procedures, transportation and labor inputs. Thus, retailers are forced to find alternatives- manufacturing options that are more in line with their own bottom lines.
Finally, there is the evolution of mass merchandisers, department stores, and e-retailers as formidable competition to the traditional specialty gifts retailing outlets. Household names such as JCPenny, Macy’s, and Sears Brands, alongside Amazon.com, offer economical pricing and massive range. Not surprisingly, gift shoppers are flocking in massive numbers to these establishments.
While the idea of personalized gifting is in itself a lucrative business proposition for the future, the players will change depending on the market mood. Manufacturers and retailers who can sense the evolving tastes of the consumers, and evolve accordingly and quickly, will hold the winning hand.
Gift yourself the Technavio Advantage
The global personalized gifts market might be changing rapidly, however, Technavio is keeping pace and pulling up the most relevant insights, market trends and estimations that impact the worldwide customized gifting industry. The same is collated in the form of a comprehensive market research report that holds the maximum value for any existing and potential players, seeking to make their presence felt in this segment. Order your copy- a FREE sample or Customized report- today.
