Corporate Gifting Trading In Good Relations

Reema Sisodia finds out that corporates are gifting like never before this festive season

Suppliers associated with corporate gifting are smiling this season. From the branded names to the ones that manufacture products for companies and brands, all are smiling.

Sunil Panzade, proprietor, Gifts International, who has been in the business for years, is one of them. Already, his company has received orders to the tune of approximately Rs 17 lakh. “We are hoping for more. This year has shown a positive trend. Gifting is on an increase and we only hope that it converts into real business for us.”

Another supplier from a major jewellery company in India seconds Panzade’s optimism. “The market has picked up as compared to last year. On an average, the budget allocated specially for corporate gifting during the Diwali season has increased by around 35 per cent. The orders have multiplied and business has boomed. Apart from the regular gifting amongst the staff and senior management, the top of the line corporate is spending big money. This is real good news for suppliers as the market is looking bright for a change,” says the supplier.

‘Gifting’ is a simple concept, associated with giving, warmth and relationship building. It however gets a few categories attached to it once the word ‘corporate’ is added to it. Corporate gifting can take place within the company which is called internal gifting, between clients and suppliers, amongst strong business allies. What differs is the money value of the gift. The price range in the area of corporate gifting is spread over a broad spectrum depending on who’s giving since everyone from multinationals to small family-run companies are in the fray.

Says Dolly Minawalla, manager, Pallazzio, Danabhai Arcade Private Limited, “The market has seen an upswing and yes, there has been more movement in the area of corporate gifting for Diwali as compared to the year that went past. We cater to clients across the board and the general feedback has been extremely positive from all quarters. From the bulk orders to highly specialised and personalised gifts where the emphasis is more on relationship building than business building, the spending sanctions have risen. Gifting of spiritual mementos is very popular amongst all categories. Our Divinity range of spiritual gifts in 24 carat gold such as photo frames, visiting card holders, car frames, temples, pen holders, mobile phone holders, pen boxes, jewellery boxes and accessories are all selling well.”

Many suppliers say that spiritual gifts and mementos are the ‘in’ thing. From the lowest to the highest range, these gifts can be purchased to suit most requirements.

DivinitiTM, a part of New Delhi-based Taneja Mines Pvt. Ltd., has a plethora of products that meld tradition and technology. Wall hangings, key chains, car frames, watches, visiting card holders, jewellery boxes, desktop pieces, glasses and goblets are just some of the gift items that bear the Diviniti stamp. Whether it be a suave chrome-finished table clock or an elegant rosewood jewellery box, all items carry the unmistakable embossed Diviniti designs. Classic images, centred mainly on mythology and culture, are etched into fine nickel foil, and plated in 24-carat gold, through a unique patented process in Switzerland. The price range starts at Rs 99 for a mobile phone stick-on, with more exclusive pieces crafted with semi-precious stones liable to cross Rs 1 lakh. Available in leading jewellery stores, car dealers, gift shops and boutiques, their clientele includes Rashtrapathi Bhavan, the Indian Army, Hindustan Lever Ltd, Rotary Club, Reliance Industries Ltd., among other prestigious names.

InterGold is another brand making spiritual products. Says Vijay Jain, chief operating officer, InterGold, “Our spiritual line called the ‘Svayambhu’ is one of the most popular give-aways during Diwali. Top banking and oil companies have placed orders for specialities in this range. The demands of the current market include catering to client needs, providing customer specific artifacts. Everyone is looking for that something special and the more novel a piece the greater the demand it generates.”

To meet this demand, InterGold has introduced a special range of products called the ‘Mandana Folk Art’ on a “canvas of gold called the Swarna Mudras”. They have popularised the art speciality of a craftsman called Lakhi Jain.

In the same vein, Ravissant, another lifestyle brand, has introduced ‘Mokume Gane’ (woodgrained metal) products, which it claims is a forgotten art of Japan. It is offering for sale decorative and utility products made by the metal. Says Monisha Kapoor from Ravissant, “Corporate executives, especially those belonging to the top bracket, always look for rare pieces and products to gift. Personalised gifting is fast picking up and branding counts. Top brands sell in the present times. Creating new designs and offering unexpected products gives you an edge. We have created special items for Diwali such as traditional ‘thalis’ (plates) and other products associated with ‘pooja’ this season.”

Jain also believes that brand matters. He says, “The trend is not only about what you get but from where you get it. Corporate gifting gives vendors a great leverage.”

In fact, a few international brands have set base in India to cater to the Indian clientele, usually with respect to spiritual gifting, especially for a festival like Diwali. Patchi, the premium chocolate brand from Lebanon that set base in India last year has introduced their new range of chocolates specially packaged for Diwali. Says Chetan Gokal, country head, Patchi, “The trend is towards unique gifting and since we represent a premier international chocolate brand, we definitely get a number of clients who wish to gift our products. Packaging the products as per the Indian festive season has been a conscious effort by us since a non-traditional product such as chocolates for Diwali is getting highly popular.”

Along with these specialised products, the regular brands such as Cadbury, Croissants and the mithai shops continue with their share of business. Says a spokesperson from Cadbury, “Our regular clientele remains loyal to us. We have created a niche in the market and are constantly upgrading and improving our products to cater to all our clients, big and small.”

Croissants Etc, the cake shop brand of the Ambassador Group, has introduced combinations of chocolates, mithais, cookies, pastries. Says Margaret D’Souza, operations-manager, Croissants Etc, “The market response shows that people are spending and it is a positive sign for suppliers.”

Another feature of corporate gifting has been the emphasis on aesthetics and packaging - presentation is not being ignored, no matter how expensive the gift. Minawalla says, “Most of our products, whether they are jewellery, office related products or specialised curios, have special concepts for packaging. It’s the first impression you make that has to be a striking one.”

InterGold for example has laser inscribed packaging while Patchi has patented flower-designed packages. The styles are getting more unusual and eye catching.

Flexible gifting options are also in vogue. Travel Corporation of India (TCI) has introduced their ‘Gift A Holiday Offer’ which has been very well received within the corporate circuit. According to TCI officials, flexi-holidays as a concept is spreading well in the market as a number of companies have opted for it for both their internal staff and outside clients. In the case of Tanishq, the jewellery brand of Titan Industries Ltd, besides five gram gold coins which is extremely popular amongst the business circuit, gift vouchers with varied denominations for clients is also getting many takers. Says Abhijit Achwal, regional business manager, Titan Industries Ltd, “Our corporate gifting segment is extremely vibrant. We have a host of speciality products to offer and gift vouchers is also a popular option. Since the corporate gifting segment is an extremely active market, we also have a special team to focus on institutional sales. Brand popularity counts in the area of corporate gifting. As an employee of a company which is well represented and connected across India, I can say that corporate gifting as a concept is popular in most regions of the country today apart from Mumbai and New Delhi.”

Cities like Bangalore and Hyderabad are in fact fast catching up in the market for corporate gifting.

Says Nikki Kalia, head-corporate communication, Hidesign Boutique, specialists in leather products, “In fact people in cities such as Hyderabad and Bangalore are growing considerably in terms of volumes. Overall, there has been at least a 30 per cent rise in business in the corporate gifting business this Diwali.”

With such a broad range of products to choose from, it is a buyer’s market. Companies can afford to be choosy. A spokesperson from Essar Group says, “We are always looking for something different, both for our internal as well as external gifting. Rare and unusual products are timeless and a few international brands have also approached us recently with their Diwali range of products. There are special budgets depending on the staff hierarchy and our gifts are selected taking this factor into account. We have over the years developed a good vendor base and there has been an improvement in products over the years.”