Corporate gifting booms: Brands shift toward personalization, sustainability, premium experiences

As the festive season kicks off in the country, the corporate gifting culture has also boomed. Experts describe it as a powerful 'marketing tool', saying that corporate gifting enhances the brand and builds customer loyalty.

According to Gaurav Bhagat, Managing Director at Consortium Gifts, the corporate gifting landscape has evolved significantly, especially in the premium segment. "Companies are shifting towards high-quality and focusing on brand consciousness over value. Businesses are also moving away from generic gift vouchers towards customized items that foster deeper connections," he says.

Notably, gifting occasions have expanded to include anniversaries, partnerships, and achievements, often marked with high-end, exclusive gifts that enhance relationships and reinforce brand identity.

A Deloitte survey revealed that 70 percent of corporate clients prioritize gifts that reflect their brand values.

Shantanu & Nikhil, a client of Consortium Gifts said, "The personalized approach to gifting helped us maintain an emotional connection with our partners, beyond just business transactions".

According to the Promotional Products Association International (PPAI), 83 percent of people are most likely to do business with brands that gift them personalized or thoughtful items.

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Companies are strategically choosing gifts that align with their values and resonate with their audience, ensuring each gesture leaves a lasting impression.

Vimmi Sud, business owner at VS Dryfruit Mart told Storyboard18 that corporates also prefer gifting products that are both healthy and wholesome. She added that companies look at options like mithai (sweets) and chocolates but eventually land on tried, tested and traditional options for gifting. Dry fruits are the reliable choice and can be tailored to fit all price ranges, says Delhi-based Sud who has some of the most prominent corporate and business family clients in the country.

'Sustainable gifts'

Sud says the benefits of going the traditional gift route like with dry fruits is straightforward. It's healthy and universally accepted gift content, suitable for all ages and households, and its season appropriate given the approach of winter, a time when dry fruit consumption is encouraged and increases. The variations of types of dried fruit and other nuts allow for further customization, and price points are also wide. Besides around festivals, keeping with traditions is important to Indians and also in line with the rise of conscious consumption and the trend of going back to one's roots.

Sustainability has become a key priority for businesses. A 2024 GlobalData study found that 58 percent of corporate buyers opted for eco-friendly gifts.

Shantanu & Nikhil said, "Sustainable gifts resonate with our brand values, allowing us to stay aligned with modern consumer expectations".

A trend for experiential gifts is also emerging among global firms. For instance, Netflix and Microsoft favor tech gadgets with custom branding while Adobe prefers curated wellness subscriptions to strengthen relationships.

'Tool to boost business'

Corporate gifting has proven to be a powerful tool for strengthening relationships with clients, partners, and employees while also driving growth. Recently, Adobe reported a 20% rise in sales and a 25% improvement in client engagement after incorporating targeted gifting in their marketing campaign, Bhagat said.

Coca-Cola's corporate gifting strategy boosted partnerships with like-minded firms, he added.

'Gifts budget'

The budget for corporate gifting programmes is influenced by a range of factors such as the size of the company, industry, ROI, etc. Consortium Gifts told Storyboard18 that there's no fixed percentage of revenue that companies allocate, mostly opt to spend 1-3 percent of their annual revenue on corporate gifting.

Just like big businesses, smaller ones are also embracing corporate gifting, though on a more focused scale compared to larger corporations.

Small businesses are leveraging personalized and thoughtful gifts to build strong client relationships and foster loyalty. Research shows that 54 percent of small businesses saw a measurable improvement in client engagement through corporate gifting.

'E-commerce and corporate gifting'

E-commerce has revolutionized corporate gifting by making it more accessible and efficient. Businesses can now browse, customized, and make bulk orders with platforms like Zilingo and Printrove. Recently, e-commerce giant Amazon revealed that its B2B online marketplace clocked over 134 percent year-over-year growth on its Corporate Gifting Store in the first 10 days of the Amazon Great Indian Festival 2024. Among all categories of products, mixer grinders and juicers emerged as the most gifted items on Amazon Business this year. As per Consortium Gifts, 65 percent of businesses prefer e-commerce for corporate gifting, with a 40 percent increase in firms opting for personalized gifts.

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'Outlook'

In the next 5-10 years, corporate gifting will witness major advancements driven by technology and sustainability. Notably, artificial intelligence (AI)-powered platforms are also transforming the industry, using smart algorithms to recommend personalized gifts based on recipients' preferences.

Companies should watch for innovations in personalization, sustainable materials, and tech-enabled gifting solutions and a renewed appreciation for traditions. These trends will help them stay relevant and make lasting expression.