Gifts Retailing Market to Grow by USD 11.01 Billion (2024-2028); AI Shaping Trends Amid Rising Demand for Seasonal Decor and Gifting Culture - Technavio

NEW YORK, Dec. 17, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global gifts retailing market size is estimated to grow by USD 11.01 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 2.43% during the forecast period. Rise in demand for seasonal decorations and growing gifting culture is driving market growth, with a trend towards rise in demand for specialized merchandise. However, pricing pressures due to fierce market competition poses a challenge. Key market players include 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..

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Key Market Trends Fueling Growth

The global gifts retailing market is experiencing a significant increase in demand for specialized merchandise. This trend distinguishes specialty merchandisers from mass merchandisers. Local artisan-crafted gifts offer high product differentiation, attracting the premium customer segment. Souvenir and gift retailers often act as distributors for such merchandise. Companies like Disney license their properties to retailers and engage in distribution through their own stores. The growing demand for specialized merchandise is expected to drive market growth during the forecast period. 

The gift retailing market is experiencing significant growth with various trends shaping the industry. E-commerce is a major trend, with many retailers offering online purchasing options for convenience. Personalized gifts are in demand, as consumers seek unique and thoughtful presents. Gift cards and vouchers are also popular, providing flexibility for recipients. Decorative and functional gifts, such as tech gadgets and home appliances, are trending. Customized and sustainable products are gaining traction, as consumers prioritize ethical and eco-friendly choices. The market is competitive, with retailers focusing on product innovation, customer service, and marketing strategies to attract and retain customers. Overall, the gift retailing market is dynamic and evolving, with retailers adapting to meet changing consumer preferences. 

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Market Challenges

• The global gifts retailing market faces intense competition from various alternative retailers, including department stores, mass merchandisers, e-retailers, and novelty stores. These retailers offer a wide range of gift products and enjoy cost advantages due to economies of scale and wide distribution networks. As a result, they can offer their products at lower prices, impacting the pricing strategies of other vendors in the market. E-retailers, in particular, have gained significant popularity in developed markets, contributing to over half of the gifts retailing purchases. Major players, such as Macy's, JCPenney, Sears Holding, and House of Fraser, face pricing pressure due to the presence of these alternative retailers. Amazon.com and Alibaba Group are notable e-retailers that pose a significant threat to specialty gift retailers in the global market.
• The experiential gifts market is growing rapidly, with consumers seeking unique and personalized presents. However, retailers face several challenges in this sector. Domestically sourced gifts are in demand, but finding reliable suppliers can be difficult. Pricing and competition are also major concerns, as retailers strive to offer competitive prices while maintaining profitability. Additionally, the trend towards online shopping is increasing, requiring retailers to have a strong digital presence and efficient logistics. Marketing and customer engagement are also crucial, as retailers look to build brand loyalty and differentiate themselves from competitors. Overall, the experiential gifts market presents both opportunities and challenges for retailers.

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Segment Overview 

This gifts retailing market report extensively covers market segmentation by

1. Distribution Channel
• 1.1 Offline
• 1.2 Online
2. Product 
• 2.1 Souvenirs and novelty items
• 2.2 Seasonal decorations
• 2.3 Greeting cards
• 2.4 Giftware
• 2.5 Others
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Offline- The offline distribution channel for gifts includes retail stores, department stores, supermarkets, and hypermarkets. Vendors use marketing strategies and long-term contracts with third-party retailers to display their products. Offline channels have higher operational costs but offer customers the ability to touch and feel gifts and receive advice from sales personnel. However, the COVID-19 pandemic significantly impacted offline channels, causing supply chain disruptions and store closures. With the rollout of vaccines and easing of restrictions, offline channels are reopening, driving market growth during the forecast period. Aldi and Walmart are major retailers in the organized retail sector, investing in brick-and-mortar stores to increase market share.

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Research Analysis

In the dynamic and expansive Global Retail Industry, the Gifts Retailing Market holds a significant position, particularly during seasonal celebrations and special occasions. This market encompasses a wide range of products, including seasonal decorations, greeting cards, giftware, personalized presents, luxury items, jewelry, premium products, fragrances, and customized gifts. Offline and online retail channels cater to diverse consumer preferences, with social media marketing playing a pivotal role in promoting gifting culture. Birthdays, weddings, anniversaries, Hanukkah, Easter, parties, public gatherings, personal products, and beauty care products are some of the key occasions driving demand in this sector. The market offers an array of options for gifting, from traditional to trendy, ensuring a personalized touch for every occasion.

Market Research Overview

The Gifts Retailing Market encompasses a wide range of products designed to bring joy and expression to various life occasions. Decorative items, cards, and gifts form the core of this sector. Online platforms and physical stores offer a vast array of choices, from personalized gifts to seasonal merchandise. Consumers seek innovative, high-quality, and thoughtful presents for anniversaries, birthdays, holidays, and other special events. The market is driven by factors such as increasing disposable income, changing consumer preferences, and the convenience of online shopping. Expanding globalization and the growing trend towards experiential gifts are also significant market drivers. The future of the Gifts Retailing Market lies in the integration of technology, sustainability, and personalization to cater to evolving consumer needs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Offline
• Online
• Product
• Souvenirs And Novelty Items
• Seasonal Decorations
• Greeting Cards
• Giftware
• Others
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio