Decline of Corporate Gifting During 2017’s Chinese New Year in Malaysia

Over the span of the Chinese New Year, in 2017, in Malaysia : the amount of corporate gifts distributed had decreased (in comparison to the year prior). It was said that due to the slow and sluggish economic status of Malaysia, the amount of corporate gifts had declined.

 

Many local gift businesses have suffered as a consequence of this. They have stated that they have noticed a reduction in their orders from big corporate clients. Most clients state that the reasoning is due to a reduction or tightening of the corporate gift budget. Some companies, that supply corporate gifts, even claim that that their businesses have reduced in 10-15% in sales over the course of Chinese New Year, which is typically a large celebration and means for corporate gifting in Malaysia.

 

Clients usually either reduce their order volume or they order more low-value gifts than they did before, which is all a means of compromise. It has been noted that in a situation of a stagnant of slow-growing economy : most companies will cut or reduce their corporate gift budget. Although it is an effective marketing strategy that can produce many gains for the company, it is not the most significant. And therefore, the budget is slashed and compromised.

 

In Malaysia, Chinese New Year is a huge celebration with over 20% of Chinese Malaysians conducting their celebrations. Chinese New Year is also a major time for corporate gifts, where many people receive ang paos, fruit baskets, corporate office gifts and so on. But now the number of gifts are reduced and the number of recipients are limited as well.

 

However, the corporate gift supplies are optimistic about the upcoming year. Despite facing a quantifiable loss this year, in approximately 10 – 15% (depending on the company), they do estimate to make a gain in the upcoming year, as well as months to come. Because corporate gift companies have other holidays that generate a lot of income and revenue, especially in a country like Malaysia (where there are holidays for 3 major religions and 3 major races). Therefore, they are keeping an open mind and positive outlook over the progress of their business in the long run.

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