The Corporate Gift Industry and its Net Value

The Corporate Gift Industry made its start and origin way back in the 80s. Since then, it has established itself in all forms and sectors of the corporate world. To begin with, the corporate gift industry has grown exponentially since 1980, where an estimate 8.2% of businesses were implementing gifts into their marketing strategies. Currently, (from a research compilation taken in 2016), the industry has boomed to 84% of companies are using corporate gifts.

 

With such exponential rise in the industry, it would only make logical sense for the industry to increase in their revenue and net value. And it definitely has. According to Incentive Magazine, and their Incentive Marketplace Estimate Research Study, it is estimated that the corporate gift industry in United States of America is approximately USD90 billion. $90 billion were reported spent on non-cash incentives in the year of 2015 in USA. That is a 13% increase from 2013. Other points from their research pointed out that 84% of US businesses are using these non-cash incentives for a variety of reasons : reaching out to the customer, building office morale, marketing purposes and more. These non-cash incentives are primarily corporate gifts, but the number also includes things such as employee rewards, sales rewards and customer rewards (tactics typically used to increased efficiency and productiveness of a company through incentives). Of that $90 billion, $14.4 billion worth of gifts were spent on travel and $75.6 billion was used on merchandise. It is also interesting to note that the research claimed that although there were a drop in the number of companies giving corporate gifts, the budgets for corporate gifts (of the same companies) were increased. Causing the hypothesis to rise : are companies spending more for less people? And if so, what are they spending more on and who are eligible for these gifts?

 

Apart from the USA, another research study was released for the United Kingdom and the corporate gift industry there. It is estimated to be GBP78.3 million, from One4All data. The industry is a bit more reserved in United Kingdom, with only 49.3% of UK workers recieving non-cash incentives. These corporate gifts are also more common in private-sector organizations where mass production (having supplies and releasing products) are more favored for distributing corporate gifts. In the manufacturing sector, 68% of companies implement corporate gifts. In the utility sector, 67% use corporate gifts and in the communications and information sector, 62% of companies use corporate gifts. It was noted in the study that food and beverages were the most common and popular corporate gifts : wines and hampers. However one difference in the corporate gift industry in UK (when compared to USA) is that they extend their non-cash incentive to events and parties. Their corporate gifts are handed out as door gifts. It is something that is not so common, but seems to be picking up attention.

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