The Tale of the Gifting Industry and What Christmas Means for Retailers

The act of gifting has probably been around since the Stone Age. It is embedded in our DNA to show other people affection or appreciation by giving presents. And today, the gift industry is booming.

What types of gifts are the best to give?

According to a study by professors at the University of Pennsylvania and the University of Toronto, gifting fosters stronger social relationships. The study found that the best material gifts to give are those that incorporate an experiential element that makes them more emotionally evocative. Therefore, any gift that recipients can interact with, in a personal way, is sure to be better received than non-experiential presents.

Examples include gifts that can be used in an engaging way, such as books, gadgets, and toys and items that recipients will automatically want to touch, such as cashmere sweaters or gifts inside beautiful boxes. Eatables are also excellent gift choices. As well as being experiential, the best gifts to give are personal or customizable. For instance, if you are looking for corporate christmas gifts, consider the individual you are giving the gift to and tailor the present according to his or her taste. If you know your work colleague has a weakness for craft ales, for example, you could give a craft beer hamper. The gifting industry is well aware of the types of products that sell best, so today, you can find more custom and personal gift options than ever before.

How Important is Christmas to Gift Retailers?

For some time now, people have believed that retailers in the gift industry make most of their profits in the run-up to Christmas. That was once certainly true. According to a report by Unity Marketing, in 1995, retailers selling gifts generated almost one-third of their revenue in the last three months of the year. However, the report goes on to say that the amount had dropped to 19.4% by 2014.

Today, the fourth quarter of gift retailers’ years is not the money maker it once was. Yearly retail sales quarter-to-quarter have been flattening out for some time. The gift industry is now thriving just as much throughout the rest of the year as in the last quarter. While Christmas gift-spending was flat from 2009 to 2014, the overall spending on gifts increased by 6.4%. Gifts are bought for occasions like birthdays, weddings, and anniversaries, so the gifting industry is no more reliant on the period between Black Friday and Christmas Eve.

The Internet Changed Everything

The real game-changer in the gifting industry was internet shopping. The Christmas period has become less important as the year’s period for making the most revenue for gift retailers ever since shopping on the web took off.

So, while Christmas still remains one of the busiest gift shopping times of the year, it is no longer the be-all and end-all for retailers. With internet shopping and changing shopping habits, people are spending more money on gifts throughout the whole year, which is good news for the gift industry.