Remote and hybrid work, increase in year-round gifting, and support for diversity, equity, and inclusion (DEI) accelerate market growth
STAMFORD, Conn., June 9, 2022 /PRNewswire/ -- A new Coresight Research survey of 300 corporate gift buyers in the U.S. found the shift to remote and hybrid work, year-round recognition of employees, customers, and partners, and support for diversity, equity, and inclusion (DEI) initiatives have increased corporate gifting frequency. As a result, Coresight Research expects the corporate gifting market to grow 6.6% year-over-year in 2022, versus 5.2% during the same period a year ago. Coresight estimates the market will increase from $258 billion in 2022 to $312 billion in 2025, a 6.5% CAGR over three years.
The study – Unboxed: The $258 Billion US Corporate Gifting Opportunity – was commissioned by GiftNow, a Synchrony (NYSE: SYF) solution.
Corporate gifting plays a pivotal role in improving professional relationships and can be an indispensable tool for staying connected with employees, customers and partners. The study reveals external factors impacting the corporate gifting market in terms of gifting frequency and spending, include changed work models, shifts in gifting behavior, and emerging gifting occasions such as the use of corporate gifting to support DEI programs.
Key Research Findings
Sixty-one percent of corporate gift buyers in Coresight's survey cited changing their working model since the COVID-19 outbreak. Of these, 91% expect corporate gifting frequency to either increase (61%) or remain unchanged (30%). Furthermore, 89% of all corporate gift-givers expect gifting frequency to increase (50%) or remain the same (39%) after the pandemic.
The Coresight study also revealed a shift in corporate gifting behavior that indicates it is not confined to the holiday season. The top three gifting occasions cited by respondents indicate that corporate gifting is a year-round opportunity to build and strengthen relationships, which is critically important in the new work environment.
- Employee appreciation/milestone (66%, up from 64% in 2021)
- Existing client/partner appreciation (52%, up from 49% in 2021)
- Holidays (49%, down from 55% in 2021)
Also, organizations are giving fewer but higher-value gifts, with more respondents citing spending $100 or more on one-to-many corporate gifts than in 2021.
- $100-$125 (18%, up from 17% in 2021)
- $125-$150 (15%, up from 11% in 2021)
- $150+ (9%, up from 6% in 2021)
Corporate gift-givers plan to spend more in the upper end of the order value spectrum, $4,000 or more for the average order amount for one-to-many gifting.
- $4,000-$5,000 (15%, up from 13% in 2021)
- $5,000+ (13%, up from 9% in 2021)
Higher value spending is another market growth driver and indicates a more mature understanding of how to use corporate gifting to engage recipients with quality gifts versus quantity.
Corporate Gifting for DEI
DEI initiatives are emerging as an important priority for organizations to invest in corporate gifting for 75% of the respondents. There are many opportunities throughout the year for HR leaders to use gifting to recognize and celebrate diversity, such as Asian American and Pacific Islander Heritage Month, LGBTQ+ Pride Month and Black History Month, among others. Forty-five percent of respondents are already using gifting to support DEI programs, while 30% are planning to support DEI with gifting in the future.
"The corporate gifting market is continuing to see strong growth in terms of volume and value across organizations," said Pari Raccah, Senior Vice President and General Manager, GiftNow. "It's exciting to see how the 2022 survey results reflect the more intentional approaches organizations are taking with their corporate gifting efforts to help build and strengthen relationships with employees, customers and partners."
Corporate Gifting Challenges
Organizations demonstrated a more sophisticated understanding of how to use corporate gifting, but respondents cited continued challenges with limitations in the types of gifts they can give as well as the flexibility and scalability of gifting programs. Forty-eight percent of those surveyed manage end-to-end corporate gifting internally without a gifting platform. Among the top issues cited by respondents as "very challenging" for those managing their own corporate gifting efforts:
- Inability to purchase gifts from multiple brands/retailers (33%)
- Limited choice attributes such as color and size (32%)
- Managing gift inventory, storage and shipping (30%)
- Limited range of products (28%)
Fifty-two percent of respondents outsourced some or all of their corporate gifting needs. Outsourcing to a gifting provider represents an opportunity for organizations to centralize and streamline corporate gifting and address the challenges cited above. Outsourced gifting also allows organizations to ease friction points such as inventory management and shipping, lower costs, and deliver more engaging gifting experiences, reducing the number of issues cited as "very challenging."
"The corporate gifting market is growing at an accelerating rate. One of the most interesting findings in this study is the use of corporate gifts as a medium to support diversity, equity and inclusion (DEI) initiatives," said Deborah Weinswig, CEO and Founder, Coresight Research. "It is highly encouraging to see around three-fourths of corporate gift givers already supporting or planning to support DEI through corporate gifting."
The Most Popular Gifts
The study indicates both physical (53%) and digital (50%) gift cards will be the most popular corporate gift this year. Gift baskets (48%), company-branded products (46%), and experiences like movies and sporting events (39%) round out the top five.
Discover More with the Full Report
The report details six key areas of focus on corporate gifting and strategic recommendations from Coresight.
To download the full Coresight Research study, click here.
Coresight Research conducted an online survey of 300 corporate gift buyers in the U.S. in April 2022 and May 2021. The respondents represent industries such as retail, real estate, manufacturing, and health services, among others. The study spanned both one-to-one and one-to-many corporate gifts.
GiftNow is a holistic Gift Experience Management (GXM) solution that takes the friction out of gifting. With GiftNow's purpose-built GXM platform, gifters can send personalized digital gifts and gift cards in seconds and recipients can exchange or modify their items before they ship, benefiting gift givers, recipients, corporate gifting programs and retailers. For more information, please visit www.giftnow.com.
Synchrony (NYSE: SYF) is a premier consumer financial services company. We deliver a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health, and pet. Synchrony enables our partners to grow sales and loyalty with consumers. We are one of the largest issuers of private label credit cards in the United States; we also offer co-branded products, installment loans, and consumer financing products for small- and medium-sized businesses, as well as healthcare providers.
Synchrony is changing what's possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience, and customized financing solutions.
About Coresight Research
Coresight Research is a research and advisory firm specializing in retail and technology. Established in 2018 by leading global retail analyst Deborah Weinswig, the firm is headquartered in New York, with offices in London, Lagos, Hong Kong, Shanghai and Mangalore (India). The firm provides data-driven analysis and strategic advisory to clients including retailers, brands, enterprise technology companies, accelerators and more. In addition to being renowned for its breadth and depth of research, Coresight Research is known for its expertise in the China market, helping clients with market entry and cross-border e-commerce strategies. Coresight Research is also known for its Innovator Intelligence platform, consisting of a vast network of technology entrepreneurs that it actively cultivates through events, mentorship, and regularly updated report coverage. For more information, visit www.coresight.com.
Coresight Press Contact:
Erin Hanson, for GiftNow