Hello everyone. So far, we have looked at what is Corporate Gifting and how it helps your business, what are the ways you can apply ‘Out of Box Thinking’ to your business. Now we will delve into the world of Corporate Gifting in a deeper way and learn something fun in the process.
#The Psychological Aspect:
When a person receives a present that they had been hoping to get, it makes their day. The gift plays up to the person’s psychological state and appeases it. Everybody loves to be appreciated and valued. A gift sent specially for them with even one of their favourite items, would make them feel these feelings and make them psychologically bonded to the sender.
The Endowment Effect (a feeling of ownership of an item) comes into play when a physical gift is received and the receiver develops a meaningful attachment to the gift, and in turn to the sender as well.
The Theory of Reciprocity also can be considered as the receiver would feel an inclination to be more (positively) responsive towards the sender, since the sender had taken the first step of creating a psychological connection by sending them a gift.
#Fun Facts to Know:
Companies can set policies on Corporate Gifting according to the laws set in their country and based on their industry. This must be set, so that the gifting does not come across as bribery, which can get the company in deep water.
Corporate gifts can include: Shareable items (edibles, team lunches), Charitable items (A donation sum to any charitable cause), Unique low-cost items (Gift cards and the likes) and Experiences (ticket to an amusement park or concert).
According to a Forbes study, a sales negotiation that had the sales team send a gift in prior, has the advantage of having the chance to increase the revenue by two hundred percent.
Bundled and customized gifts have gathered major interest and demand now in 2022. (Oakter)
As per Forbes, the industry is predicted to make $242 billion by 2022 and it will continue growing at an accelerated rate of 8.1% CAGR through 2024. Of this 60% of the corporate gifting would be towards the clients and partners, whereas the remaining 40% is allocated for employees.
In India the CG industry, according to TechnoPak, is estimated to be around 12,000 Crore Rupees currently, out of the 250,000 Crore Rupees generated by the Corporate and Personal gifting industries together. The CG Industry is also seen to be growing at over 200% per annum.
According to Advertising Specialty Institute, only 42 percentage of companies invest in their employees by giving them a gift. And on another survey, 70% of the respondents said that receiving a holiday gift from an employer made them want to work harder (www.theladders.com)
A KPMG report says that about 8 out of 10 respondents want to buy products from brands that have a sense of responsibility to give back to their society. And 90% of those respondents are willing to pay a premium amount for it.
‘Made in India’ is getting all the limelight now, and many artisanal products made by Indian artists are used in the gift hampers exclusively.
Choice-based gifting is also rising in trend, where the company lets their employees, clients and partners to choose their gifts from their website.
#Our Independent Study Infers:
When asked about what their most recent hamper was for, our study grou p responded as follows:
And for the question ‘If that hamper represented the occasion, it was given out for?’ 76% responded on the affirmative and the remaining 24% responded on the negative.
When questioned about the contents of their latest hamper, more than 50% answered with Daily-use products while the rest were made up of Eco-friendly, Tech Gadgets, Electronics/Appliances and Edible.
