Positive Gift Givers’ Market

2. Positive Gift Givers’ Market • Although First Research forecasted just a 1% increase in personal consumption expenditures at gift, novelty and souvenir stores for 2015 and 2016, US Census Bureau data reveal total retail sales for this sector increased 9.6% to $18.91 billion for 2015. • The most recent US Census Bureau data for the first 5 months of 2016 state that retail sales at gift, novelty and souvenir sales stores increased 5.7%, or a total of $7.02 billion, compared to the first 5 months of 2015, with a total of $6.64 billion. • Although the US economy, job growth and retail sales were slow to sluggish during the first 6 months of the year, all indicators are on the increase, prompting the National Retail Federation to increase its 2016 retail forecast from an earlier 3.1% to 3.4%.

3. Consumers’ Top-5 Home Decorating Styles, by Generation, October 2015 Gifts and Decorative Accessories, Gift Consumer Survey, October 2015

4. Gift Purchase Preferences • Somewhat surprisingly, Gifts and Decorative Accessories’ October 2015 Gift Consumer Survey found that socks, at 40%, were the top fashion accessory purchased as a gift; followed by fashion jewelry, 39%; handbags, 36%; and scarves/wraps, 34%. • Millennials, at 85%, bought a bath and body product as a gift, with Generation Xers, 82%, and Baby Boomers, 72%. Mother was the top recipient, at 53%, among Millennials; friend, 55%, for Generation Xers; and daughter, 50%, for Baby Boomers. • Millennials also bought gourmet products as gifts, at 39%, with Generation Xers, 37%, and Baby Boomers, 35%; however, all three generations bought most gourmet products for themselves, at 72%, 69% and 53%, respectively.

5. More Gift Purchase Preferences • The greeting card industry has been declining for years and data from Gifts and Decorative Accessories show one of the reasons may be that Baby Boomers bought the most cards per year, at 12, while Millennials bought 8 per year. • Millennials, at 71%, consider gift-wrapping more important than Generation Xers, 68%, and Baby Boomers, 64%. Midwest consumers are more likely to use wrapping paper, at 61%, while Southern consumers are more likely to use a gift bag, at 51%. • Baby Boomers, at 31%, households with incomes of $100,000 or more, at 52%, and households in the Northeast, at 52%, are the demographic profiles that are more likely to spend $100+ on a wedding gift.

6. Home Scents Home • According to The NPD Group, the home scents sector of the prestige fragrance category had total sales of $49.9 million for the 12 months ending April 2016, with candles increasing 18% and fragrance diffusers increasing 36%. • Gifts and Decorative Accessories found that 76% of consumers purchased a candle for themselves and 52% purchased a candle as a gift during 2015. • Glass candleholders were the most popular with all three generations: Millennials, 86%; Generation X, 89%; and Baby Boomers, 87%. Ceramic holders were second: Millennials, 47%; Generation X, 49%; and Baby Boomers, 47%.

7. The Gift of Christmas • The ChristmasLightsEtc.com 2015-2016 Christmas Trends survey found that 25% of respondents start Christmas decorating the weekend after Thanksgiving, with 16%, early November; 17%, mid-November; and 19%, Thanksgiving week. • The top 5 Christmas decorating styles that survey respondents said they created during the last 3 years were traditional conservative, 35.3%; my own style, 16.6%; whimsical/fun, 14.5%; traditional ornate, 11.4%; and modern simple, 5.6%. • Most people only display one Christmas tree in their home, at 45%; with 2 trees, 28%; 3 trees, 12%; 4 trees, 5%; 5 or more trees, 9%; and no trees, 3%.

8. Advertising Strategies • Gift stores can offer a declining discount to customers who purchase their Christmas decorations early, with the largest discount before the end of October and declining each week during November through the weekend prior to Thanksgiving. • Gift stores should maintain an inventory of decorative and gift products and create in-store displays corresponding to the top 5 favorite decorating styles of the three generational groups. Consider offering a discount or coupon to anyone trying a different style. • Since all three generational groups are more likely to purchase a gourmet product for themselves, offer a discount or coupon when they purchase an additional gourmet product as a gift and have it gift-wrapped.

9. New Media Strategies • Ask customers who purchase decorative Christmas items to record a video of them showing their Christmas style and decorations inside and outside their home, and then posting it to the store’s social media pages. • Post photos showing the latest gift-wrapping papers and styles, including a gift-wrapping tutorial video. Offer to send a mobile coupon via email for the gift-wrapping of items purchased at the store, with social media visitors’ submission of their email address. • Post photos of the “unique” gifts offered at the store that local shoppers are unlikely to find at department stores and mass merchandisers. Promote a discount or coupon for a qualifying purchase of any of the pictured unique gifts.