A reality check of corporate gifting domain

Corporate gifting companies in the thriving Noida and surrounding Greater Noida are steadily but surely on the rise. According to a news report, they are all keen to target clients across diverse domains, irrespective of sizes and turnover. In an effort to increase the market share, they are coming up with offbeat, innovative and customized gifting solutions.

From dazzling decorative objects to items that one can put to practical use by customizing the same seems to be the trend. These corporate gifting solutions firms, in fact, are trying every trick in the book to draw attention of finicky corporate clients. Logic here is quite simple: ‘Bigger orders mean higher margins and obviously more profits.

These players mostly work along a defined and focused B2B model. A majority of them are into procurement & retailing of gifts purely backed by a strong supplier-manufacturer base. The business for them tends to be more occasional or seasonal in nature with the peak period being festive occasions such as Holi and Diwali followed by Christmas and the New Year celebrations. On other hand, the regular business is generated from select corporate gathering, promotional events, employee appreciation programs and acknowledging business associates through gifting.

According to the corporate gifting industry players, production processes, labor costs as well as everything around marketing and branding has become expensive. As a result, corporate clients have become choosy when it comes to gifting. They seek research and other inputs instead of mere gift items. Many of them now avoid traditional decorative items, preferring to gift utility products, which are much more affordable.

In backdrop of the fast-changing business environment, gifting industry is obviously facing a new set of challenges. The problem is compounded by the fact that a large part of the industry is still highly unorganized. There is no dearth of ‘fake’ vendors in major metros of India who distort prevailing market rates by offloading low quality products, adding to their woes.

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