Released on = April 15, 2007, 10:05 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Executive Summary

In 2005, it was estimated that the corporate giftware market was worth £1.05bn,
virtually static from the year before.


Press Release Body = Corporate Giftware - Market Report 2007

Executive Summary

In 2005, it was estimated that the corporate giftware market was worth £1.05bn,
virtually static from the year before.

The purpose of corporate giftware can be to secure new customers, reward existing
customers, increase distribution, motivate staff, and increase brand and company
awareness. Promotional products are generally items that are imprinted with a logo
or slogan and given out to promote a company, service, product, achievement or
event. In such a competitive and over supplied market, sourcing companies are
constantly looking for originality and novelties to attract their corporate
customers. However, stalwarts such as mugs and desktop accessories remain popular
choices and have the advantage of being used, and seen, frequently. Valuable and/or
enduring gifts, such as fine wines and crystal, are more a gesture of appreciation
than a promotional ploy, although, of course, the goodwill behind their giving will
not go unnoticed by the recipient.

The giving of corporate giftware should be mindful of etiquette. Company policy on
both giving and receiving corporate giftware, other than cheap gimmicks, should be
checked and care exercised to ensure that the giving of gifts will not be construed
as bribery, too personal in nature or too ostentatious.

Traditional companies active in the corporate, as well as consumer, giftware sectors
have not found trading easy in recent years, especially those luxury goods companies
such as Waterford Wedgwood PLC and Portmeirion PLC that are highly reliant on the US
consumer market. Both companies have seen an upturn in their most recent trading
figures, but the fact remains that they face ever-tougher competition from overseas
manufacturers, which can produce quality giftware on much lower overheads.
Furthermore, the UK has a trade deficit in most categories of giftware products,
with the exception of jewellery.

The retail market, too, has experienced a slowdown in its growth rate, with a
knock-on effect on the corporate giftware operations of traditional retailers such
as Debenhams, Marks & Spencer, Next, Boots, House of Fraser and John Lewis. However,
these high-street retailers have successfully taken on the challenge presented by
online-only retailers, and figures released by National Statistics show that online
sales exceeded £100bn for the first time in 2005 - a 56% increase on the previous
year. The Internet also offers the opportunity for clients to take part in online
tendering, whereby prospective buyers can submit requests for proposals to meet
their corporate and promotional giftware requirements and select appropriate options
from suppliers\' offers.

This serves to make an already oversupplied market still more competitive, and an
increase in value sales of corporate and promotional giftware of any significance is
not anticipated in the short and medium term. However, a major event such as the
London Olympics 2012 offers huge potential for promotional giftware, the supply of
uniforms, branded T-shirts and other memorabilia.

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