The Gift Market Rides the Coattails of a Strong Economy After unadjusted retail sales at gift, novelty and souvenir shops increased a meager 1.82% from 2015 to 2016, it decreased significantly from 2016 to 2017, or -6.5%, totaling $15.646 billion for 2017. During the first half of 2018, however, retail sales at gift, novelty and souvenir shops increased 5.4%, or $7.242 billion, compared to $6.868 billion for the first half of 2017. During 2017, the average American (persons 2+) spent $1,229 on gifts of goods services. Those 45–54 spent the most, or $1,893; followed by adults 55–64, $1,765; adults 65–74, $1,353; and adults 35–44, $917.

A Year-Round Calendar of Giving Unsurprisingly, 95% of consumers are most likely to purchase a gift for someone’s birthday, according to the Gifts and Decorative Accessories 2018 Gift Book survey. Christmas/Hanukkah, at 71%, and Mother’s Day/Father’s Day, at 51%, are second and third. The top three hold true regardless of household income, although those with incomes of $100K or more had the largest percentage of birthday gifts, at 95%. Middle-income households ($50K–$99,999) had the largest percentage for Mother’s Day/Father’s Day gifts, at 56%, compared to 54% for those with incomes of $100K or more and 45% among those with household incomes less than $50K.

Home Gifts Enhance Individual Lifestyles Understanding consumers’ planned home product purchases helps those giving gifts to make the perfect choice. According to the Gifts and Decorative Accessories 2018 Gift Book survey, 58% plan to buy decorative pillows, throws and rugs. Interestingly, a larger percentage of consumers, or 37%, with household incomes less than $50K are planning to buy flatware than those with household incomes of $50K–$99,999, at 31%, and $100K or more, at 26%. Casual dinnerware for indoor use is the top choice of Millennials, 97%; Generation X, 94%; and Baby Boomers, 95%. A larger percentage of Generation X, however, are planning to purchase formal dinnerware, at 21%.

The Thoughtfulness of a Fashion Accessory Gift According to the Gifts and Decorative Accessories 2018 Gift Book survey, 38% of consumers said they were likely to buy fashion accessories as a gift while 44% said “maybe” and 18% “not likely.” Consumers in all three household income brackets said earrings would be their top jewelry purchase during the 12 months ending July 2018, or less than $50K, 52%; $50K–$99,999, 53%; and $100K or more, 50%. Consumers’ expected spending for a handbag was relatively the same in three price categories: $50–$99, 22%; $200–$249, 21%; and $25–$49, 19%.

Gift Cards Continue To Be a Prime Choice As the table on page 1 of the Profiler clearly shows, gift cards are popular choices for many occasions. According to Blackhawk Network’s March 2018 survey of 3,030 consumers, 91% said they had purchased a gift card, 87% as a gift and 69% for themselves. 80% of survey respondents said promotions involving physical gift cards have more influence on their purchase decisions than bonus dollars, coupons and digital gift cards. There is strong interest, especially among Millennials, to receive a gift card through a social media platform, or 60% of respondents in this age group, and 54% of Millennials would be interested in giving a gift card through social media.

The Art of Gift-Giving in an Ever-Changing World According to the report, Top Trends 2018-19, from AmericasMart Atlanta and Lifetime Brands, the average size of an apartment is 934 square feet, which is 8% smaller than 2009; however, these households prefer “small touches” of luxury items.   With more young adults postponing marriage, there are fewer wedding registries and, therefore, traditional gifts for a new household. For example, during 2017, 50% more tableware gifts were purchased for new home/housewarming than weddings. The four essential trends are products that help people save time; utilizing short stories in marketing that focus on specific themes, such as coffee crafting; thematic gifting, such as gifts for pet lovers; and applying fast- fashion trends to homeware gifts.

Advertising Strategies Suggest to gift-shop owners they contact senior citizen centers or similar facilities and offer a gift-giving seminar to help them understand what gifts younger adults would appreciate. Bring a selection of gift ideas and/or show them on a big-screen via the shop’s Website. Because older adults spend the most annually on gifts of goods and services, TV is an excellent medium (and maybe the best) to reach these consumers with gift ideas. Offer a discount during one or more holiday weekend with a qualifying purchase amount. If you’re local news programs and/or Website have a lifestyle or cooking segment/page, invite a local gift-shop owner (as an occasional alternative to a local chef) to explain the latest trends in homeware and cookware, and show a few examples.

New Media Strategies Clearly, Pinterest is a prime social media platform for gift shops. To enhance its use, link photos/text to short videos about each product on the store’s YouTube channel. Cross-market from these videos to others explaining the latest trends and influences. Encourage, even incentivize, regular/loyal customers to post photos and videos on their and the store’s social media sites showing how a purchase from the store enhanced their home décor, kitchen and/or outdoor living space. During the holidays, promote a community campaign in-store and on social media to encourage customers to bring used, by still serviceable, kitchenware items to the store for distribution to homeless and/or needy families. Provide a discount for qualifying donations.