During this year’s Diwali festivities, there was a noticeable shift towards a more environmentally friendly spirit, with companies actively choosing sustainable and eco-friendly gifts for their employees, revealed Varun Moolchandani, Executive Director of Archies and Tarun Joshi, CEO and Founder of IGP.
“There has been an upsurge in the Diwali corporate gifting trends towards more sustainable and considerate solutions. Many businesses have chosen eco-friendly presents and included cultural components to reflect their beliefs,” Moolchandani said.
According to Joshi, IGP has witnessed a significant shift towards sustainability, rising from 1 per cent to 10 per cent over five years. However, traditional corporates still opted for conventional gift hampers complete with dry fruits, lamps, idols and figurines, Neha Bisht, AVP B2B Business, FnP highlighted.
As per the recent survey by IGP, India witnessed a 20 per cent year-on-year (YoY) in corporate gifting.
Strategic Upswing In Spending
Compared to the previous year the gifting company reported a significant rise in the corporate gifting segment. “We observed a notable 40 per cent increase in our corporate gifting business, signalling a positive upswing in overall spending compared to previous years,” Joshi revealed.
The other gifting company, Ferns N Petals (FnP) also reported a similar YoY growth in the same segment. “Amidst the vibrant Diwali season, our corporate gifting sector has exhibited stellar performance, witnessing a robust year-on-year growth of 30-40 per cent and is now poised for an impressive 60 per cent surge in revenue and sales,” Bisht stated.
According to Moolchandani, understanding the value of building great relationships leads to significant growth in the corporate gifting sector.
“Companies understand the value of building great relationships with customers and workers, which leads to a strategic investment in high-quality presents,” He said.
In terms of popular choices among companies for client and employee gifts, curated hampers emerged as favourites with a 30 per cent YoY growth, Joshi said.
At Archies, tech gadgets, health packages and personalised stationery were popular as corporate gifts this Diwali. However, to the brand’s surprise, there was a significant increase in demand for experiential presents as well.
Bisht also underlined the trend of gifting electronics, “The interplay of tradition and modernity remains evident, with new-age companies opting for utility-based products like a mix of electronic gadgets and symbolic items.” These gifting companies offer gifts anywhere between Rs. 500 to Rs. 5000+
The personalised gifting trend is clearly emerging in the dynamic landscape of the gifting sector. No matter the occasion, this trend is steadily becoming popular among the masses. And this year’s Diwali was no exception, as many companies chose personalised gifts for their employees.
“We’ve noticed a growing trend where companies go above and beyond by opting for personalised gifts for individual recipients, including their names,” Joshi said.
According to Joshi, personalised gifting increased from 10 to 20 per cent this year.
Moolchandani said that customisation enables a more targeted approach, demonstrating the company’s commitment to knowing each client and employee’s preferences.
Regional Engagement Dynamics
Geographical variations in corporate gifting practices are evident with a 60 per cent surge in orders from top cities during festivals, Joshi highlighted.
“Mumbai, Delhi/NCR, Bangalore and Hyderabad exhibit strong engagement. These regional preferences underscore the need to customise corporate gifting strategies to align with local cultures for effective relationship-building,” he said.
According to Moolchandani, corporate gifting practices vary geographically, with regional tastes impacting selections. “For example, certain regions preferred traditional artisanal goods, whereas others preferred sophisticated and tech-savvy presents,” he said.
However, FnP has not witnessed any major variations in gift-giving based on geographies.
While talking about luxury gifting, Moolchandani emphasised that in 2023, luxury business gifts demonstrated a blend of opulence and usefulness.
“Some firms choose high-end, unique things to make a statement, while others choose practical luxury items to improve recipients’ daily lives. Within business circles, the trend reflects a more nuanced approach to luxury gifts,” he said.
Luxury gourmet gift hampers, including premium dry fruits, exquisite sweets, and high-end gadgets, have been embraced by multinational corporations, Bisht underlined.
For IGP, Consistent with the previous year, luxury gifting continued to be a significant contributor, constituting 25 per cent of its overall revenue.