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The gifts retailing market size is forecast to increase by USD 11.01 billion, at a CAGR of 2.43% between 2023 and 2028. Market growth is fueled by several pivotal factors increasing demand for seasonal decorations and a burgeoning gifting culture, the rising popularity of private-label brands, and the expansion of distribution channels coupled with effective social media marketing strategies. These trends shape consumer preferences and drive market dynamics within the retail and consumer goods sectors. The heightened interest in seasonal decorations and gifting reflects evolving consumer lifestyles and traditions, driving sales spikes during festive periods. Concurrently, the growing preference for private-label brands signifies a shift towards value-oriented shopping experiences and differentiated product offerings. Furthermore, the expansion of distribution channels, including online platforms and brick-and-mortar stores, supported by robust social media marketing initiatives, enhances brand visibility and consumer engagement. These factors collectively present opportunities for brand differentiation, market penetration, and revenue growth, necessitating agile strategies to capitalize on evolving consumer trends and competitive landscapes effectively.
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The global Gifts Retailing market encompasses a diverse array of products catering to various occasions and preferences. From souvenirs and novelty items to greeting cards and giftware, retailers specialize in offering personalized presents and luxury items suitable for birthdays, weddings, anniversaries, and other celebrations. The industry thrives on seasonal decorations and gift-exchanging traditions, leveraging social media marketing and offline channels to reach consumers during parties and public gatherings. Gift retailers also feature beauty care products, fragrances, and jewelry as premium products that appeal to a wide audience seeking customized gifts. With a focus on personal products and enhancing customer experience, the market integrates seasonal decor into its offerings, reflecting the enduring appeal of thoughtful and meaningful gifts in the retail landscape.
The market is subjected to growth due to the rising demand for seasonal decorations and the growing gifting culture. Seasonal decorations contribute significantly to the market's revenue, while personalized decorative gifts are popular choices for important occasions. Furthermore, seasonal holidays like Christmas and Valentine's Day are peak periods for the gifts retailing market, as people often buy presents during these times.
Further, the US, the UK, and France stand out with high demand for seasonal gifts. Developing markets across Europe, APAC, Central America, and South America have witnessed an increase in the sale of gifts, particularly during festive occasions and holidays such as New Year, Christmas, Halloween, Easter, and Hanukkah. This surge in demand for seasonal gifts fuels the sales of personalized gifts, driving market growth throughout the forecast period.
The rise in demand for specialized merchandise for gifting will fuel the global gifts retailing market growth. The market exhibits a clear distinction between specialty merchandisers and mass merchandisers. Lately, the market has been witnessing a high demand for gift, novelty, and souvenir retailers. Specialty gift stores majorly offer gifts that are crafted by local artisans. This leads to a high degree of product differentiation among specialty gift retailers. This boosts the demand for specialized merchandise among the premium customer segment.
Souvenir and gift retailers can also act as distributors of specialty merchandise. For example, Disney licenses its trade names, characters, and visual and literary properties to various retailers, promoters, and publishers. The company also engages in the retail and wholesale distribution of products through the Disney Store. Therefore, with the rise in the demand for specialized merchandise for gifting, the market is expected to grow during the forecast period.
The pricing pressures due to the intense market competition are a major challenge to the global gifts retailing industry growth. Alternatives for specialty gift retailers include department stores, mass merchandisers, e-retailers, novelty, and souvenirs. Mass merchandisers and department stores offer a one-stop solution to customers. Macy's, JCPenney, Sears Holding, and House of Fraser (Stores) offer a variety of gift products through their gift retailing stores. The presence of numerous players in the market increases the market competition, which in turn, leads to increased pricing pressure.
Further, to withstand the increased pricing pressure, the existing market vendors are adopting low-pricing strategies. Such strategies negatively impact the profit margins of major market players. E-retailers pose tough competition to specialty gift and souvenir retailers. The growth of e-retailing is prevalent in regions that are characterized by widespread Internet and smart gadget penetration. Therefore, such (online) retailers can afford to offer their products at substantially reduced prices. The revenue and price offerings of these retailers impact the pricing strategies and pricing levels of other vendors in the market. Thus, increased pricing pressures will restrain the growth of the market to a certain extent during the forecast period.
The market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment refers to the sales of products through specialty retail stores, hypermarkets, supermarkets, convenience stores, department stores, and other retail formats. Sales through offline distribution channels are declining gradually because of the shift in consumer preference for online shopping.
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The offline segment showed a gradual increase in market share from USD 53.57 billion in 2018. Companies of gift products push their merchandise through offline stores by widening their store operations at different geographic locations. The huge growth in retail channels in different cities and regions will drive customer familiarization with different types of gift retailing options and increase the value sales of the market. Although the offline distribution channel is losing its market share and popularity to the online channel, extensive and innovative marketing in offline channels will propel the growth of the offline distribution channel segment during the forecast period.
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Europe is projected to contribute 48% by 2028. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The gifting culture is prevalent in countries such as the UK, Germany, France, and Spain, in the region. Also, people in Europe are conscious about the quality of household and personal products that they buy, including gifts. Some of the common types of gifts preferred by customers in the region are photo frames and souvenirs, and novelty items. People in Europe are also highly aware of and concerned about the environmental impact of customer products. Therefore, they prefer to buy personalized gifts made of recycled materials. This inclination among customers increases the demand for eco-friendly gifts in the region.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, which are forecasts to enhance their presence in the market report.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. The market forecasting focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Gifts Novelty and Souvenirs Market: Gifts Novelty and Souvenirs Market by Product, Distribution Channel, and Geography - Forecast and Analysis
UK Personalized Gifts Market: UK Personalized Gifts Market by Distribution Channel and Product - Forecast and Analysis
The market is a dynamic sector encompassing a wide range of products and experiences tailored for diverse occasions and consumer preferences. From sustainable gifts and ethically sourced products to experiential gifts like spa vouchers and travel packages, retailers cater to a global audience through online platforms and brick-and-mortar stores. Key segments include event tickets, corporate gifting, and personalized items such as flowers, chocolates, and jewelry. Marketing efforts leverage email marketing, in-store displays, and advertisements across e-commerce platforms and social media to engage millennials and other demographics. The market thrives on unique and themed products for Mother's Day, Father's Day, and other milestones, fostering brand loyalty through gourmet food baskets and novelty gifts. With advancements in augmented reality and product visualization, retailers enhance customer satisfaction and brand visibility, adapting to social trends and the evolving expectations of modernized and urbanized consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accellerate at a CAGR of 2.43% |
Market growth 2024-2028 |
USD 11.01 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
2.35 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, France, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aldi Stores Ltd., Alibaba Group Holding Ltd., Amazon.com Inc., American Greetings Corp., Bed Bath and Beyond Inc., Card Factory Plc, Costco Wholesale Corp., Enesco LLC, Ferns N Petals Pvt. Ltd., Hallmark Card Inc., House of Fraser Ltd., Loop Commerce Inc., Macys Inc., My Pet Gift Box Ltd, Penney OpCo LLC, Shutterfly Inc., Spencer Gifts LLC, The Walt Disney Co., Walmart Inc., and Williams Sonoma Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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