Gifting market: Not just occasion-driven

As a nation, we’ve been through a lot of wars, chaos, political bickering, mutual distrust and a multitude of other man-made maladies. However, amid these malaises, we never failed to celebrate significant occasions. More often, we celebrate these occasions via gift-giving.

Indeed, customarily, gift-giving is occasion-driven. While a few have religious significance, others are mere creations of the retail industry players to entice buyers to spend. So that, today, we give gifts on Christmas, Valentine’s Day, Mother’s Day, Father’s Day, etc. Gifts are even given on occasions the millennials fondly refer to as “monthsarries”.

Historically, gift-giving, especially among Christians, started more than two thousand years ago.  It was when God gave his only begotten Son to the world to be with us and lived amongst us.  Likewise, on that very day, three wise men echoed the same gesture by giving frankincense, gold, and myrrh. And as we often say, the rest is history. Gift-giving is now a multibillion-peso business in the country and a multibillion-dollar business globally.

Traditionally, garments, toys, cakes, pastries, chocolates and hams are among those selling briskly. These scenes and experiences are replicated all over the country. Thus, retailers, wholesalers, importers, and manufacturers are cashing in and are turning in millions of pesos of sales daily.

Today, however, the gifting market has widened a bit. Apart from these traditional presents, personalized gifts are in and are certainly on the rise. The research study by Technavio (a leading technology research and advisory company with a global coverage and focuses on emerging technology trends that can shape the market) on the global personalized gifts market for 2017-2021 “provides detailed industry analysis based on skill and technology (hand decoration, embroidery, engraving, printing, and carving), product (photo and non-photo personalized gifts), retail format (in-store and online), and geography (the Americas, Europe, APAC, and MEA).”

It says in its report that the “global personalized gifts market size is expected to reach US$ 31.63 billion by 2021.”  It further says that “the Americas is predicted to be the leading regional segment, generating both highest revenue and maximum incremental growth through the forecast period.”

Technavio analysts singled out at least three key factors that are contributing to the growth of the global personalized gifts market. “These are growing gifting culture and increasing demand for seasonal decorations; innovative gifting solutions and advancements in technology; and the expanding online retail, kiosks, and online distribution channels.”

“Seasonal decorations, such as decorative cups, plates, and napkins, account for a major portion of the total revenue generated in the market. Also, the growing home and wall décor market have also been aiding in the expansion of the growth opportunities for personalized gifts.”

On the other hand, product innovation continues to generate consumer interest. Consequently, it translated to increase in sales.

More importantly, the distribution channels have changed a lot. “The expanding online retail, kiosks, and online distribution channels have played very important roles in the continuing growth of the global personalized gifting market.”

We are also experiencing the same in the country today. On seasons like this or special days, like Valentine’s Day, while some items are on sale, some prices shoot up. Department stores’ wears and apparels sections are also devoured by panicking patrons. Restaurants are filled and long queues are familiar sights. Moreover, personalized gifts are very visible, too. The couple’s shirts, personalized mugs, etc. are just among those that are on the rise.

Curiously and favorably, too, the country’s gifting market is no longer solely occasion-driven. As the tourism industry continues to grow, expect the gifting market to meteorically rise. For one, as BPOs sprout domestically, we can expect a rise in employment and a consequential increase in consumers’ discretionary spending. Moreover, the rise, globally, in the millennials’ disposable income will allow them to travel more and spend more. As they try to discover places, they shall be buying souvenirs both for their own and their special buddies, friends or relatives back home.

Indeed, the country’s gifting market is no longer just occasion-driven.  It is a year-long opportunity.