In 2005, it was estimated that the corporate giftware market was worth £1.05bn, virtually static from the year before.
Press Release Body = Corporate Giftware - Market Report 2007
Executive Summary
In 2005, it was estimated that the corporate giftware market was worth £1.05bn, virtually static from the year before.
The purpose of corporate giftware can be to secure new customers, reward existing customers, increase distribution, motivate staff, and increase brand and company awareness. Promotional products are generally items that are imprinted with a logo or slogan and given out to promote a company, service, product, achievement or event. In such a competitive and over supplied market, sourcing companies are constantly looking for originality and novelties to attract their corporate customers. However, stalwarts such as mugs and desktop accessories remain popular choices and have the advantage of being used, and seen, frequently. Valuable and/or enduring gifts, such as fine wines and crystal, are more a gesture of appreciation than a promotional ploy, although, of course, the goodwill behind their giving will not go unnoticed by the recipient.
The giving of corporate giftware should be mindful of etiquette. Company policy on both giving and receiving corporate giftware, other than cheap gimmicks, should be checked and care exercised to ensure that the giving of gifts will not be construed as bribery, too personal in nature or too ostentatious.
Traditional companies active in the corporate, as well as consumer, giftware sectors have not found trading easy in recent years, especially those luxury goods companies such as Waterford Wedgwood PLC and Portmeirion PLC that are highly reliant on the US consumer market. Both companies have seen an upturn in their most recent trading figures, but the fact remains that they face ever-tougher competition from overseas manufacturers, which can produce quality giftware on much lower overheads. Furthermore, the UK has a trade deficit in most categories of giftware products, with the exception of jewellery.
The retail market, too, has experienced a slowdown in its growth rate, with a knock-on effect on the corporate giftware operations of traditional retailers such as Debenhams, Marks & Spencer, Next, Boots, House of Fraser and John Lewis. However, these high-street retailers have successfully taken on the challenge presented by online-only retailers, and figures released by National Statistics show that online sales exceeded £100bn for the first time in 2005 - a 56% increase on the previous year. The Internet also offers the opportunity for clients to take part in online tendering, whereby prospective buyers can submit requests for proposals to meet their corporate and promotional giftware requirements and select appropriate options from suppliers\' offers.
This serves to make an already oversupplied market still more competitive, and an increase in value sales of corporate and promotional giftware of any significance is not anticipated in the short and medium term. However, a major event such as the London Olympics 2012 offers huge potential for promotional giftware, the supply of uniforms, branded T-shirts and other memorabilia.
2022
