In Unboxing the Gifting Market amid Experience-Driven Retail, Coresight discusses key trends and challenges facing the U.S. gifting market, which they predict will grow from $404 billion in 2019 to $510 billion by the end of 2024.
The gifting market is rapidly growing and evolving, according to a new report published by Coresight Research. In Unboxing the Gifting Market amid Experience-Driven Retail, Coresight discusses key trends and challenges facing the U.S. gifting market, which they predict will grow from $404 billion in 2019 to $510 billion by the end of 2024.
In addition to providing an overview of the gifting market, the report, sponsored by GiftNow and authored by Coresight’s Deborah Weinswig, Steven Winnick and Manik Bhatia, discusses:
- Why the gifting market is a big opportunity for retailers
- The role of gift cards
- Why returns are a top pain point
- The importance of personalization
- A review of GiftNow as a Gift Experience Management solution
Opening the Gifting Opportunity
One of the main factors that has been impeding the growth of the market is that retailers and merchants tend to treat gift shoppers the same way they treat people shopping for themselves. But, as Coresight points out:
“There are glaring differences across the entire shopping journey when purchasing gifts versus shopping for oneself. Retailers need to address multiple friction points involved in the shopping of gifts such as shipping cutoff dates, anxiety in determining the correct size and color, and the need for the correct shipping address of the gift recipient.”
The report suggests that, by creating easy-to-use gifting experiences, merchants can create value for the gift buyer and the recipient. To address this, end-to-end holistic gifting solutions can be applied to fulfill the needs of today’s multichannel shoppers, while helping to provide a memorable experience for the gift shopper and the recipient.
Don’t Forget About Gift Cards
Gift cards continue to represent an important category in gifting. According to Coresight, gift cards represented around 15 percent of personal gifting in 2019—coming in with sales of more than $60 billion— with a higher percentage of about 20 percent during the holiday season.
Convenient as they are, gift cards—when not properly presented—can come across as impersonal. But, with modern Gift Experience Management solutions, gift cards can be digitally delivered with a personalized experience and message that conveys warmth and emotion.
Returns: How to Avoid the Pain
Returns continue to be a major pain point for brick-and-mortar as well as online retailers—not to mention consumers. According to Appriss Retail and the National Retail Federation (NRF), U.S. shoppers returned about $309 billion in merchandise in 2019… that’s over 8 percent of total retail sales. And is likely higher still for gift recipients who may not want or need a particular item.
Returns and exchanges are generally a dreadful experience in the best of times but, given the Coronavirus pandemic this year, many people want to avoid the crowds at stores or dealing with return shipping. Frankly, merchants don’t want to deal with returns either, especially for seasonal goods that no one wants come January.
Gift Experience Management solutions such as GiftNow can solve this problem by enabling the recipient to adjust, customize, or exchange their gift before it is shipped to them. This significantly reduces or even eliminates the need for costly and burdensome returns.
Gift Experience Management to the Rescue
Retailers and gift givers alike can benefit from Gift Experience Management (GXM) solutions. GXM, as a holistic approach to gifting, provides personalized, near instantaneous gifting that, according to Coresight, can improve conversion rates and limit returns. And, especially important this year, it enables contactless gifting.
Kevin Payne is the Vice President of Corporate Marketing at Loop Commerce