The business gift market - France (2024)

1.2 The global market for business gifts and personalized gifts

It's difficult to estimate the size of the business gifts market, given the diversity of the products involved and the limited information available on this particular sector.

It is, however, possible toobtain data on the market for personalized gifts, which may include business gifts. worldwide, it represented $**.* billion in ****, and is expected to grow at a CAGR (***) of *.*% to ****. by then, it could reach $**.* billion. If it continues at this rate thereafter, the personalized gifts market could double in size between **** and ****.

Global business gifts market World, ****, in billions of US dollars CAGR: *.** Source: ****

This growth applies to all parts of the globe, with a slightly more dynamic increase in North America and Asia-Pacific. It can be explained by the buoyant trend towards personalization, increased recognition of holidays and celebrations, and the expansion of the catalog of consumer products available.

1.3 The French business gift market

In ****, the French business gifts market was estimated at between *** and * billion euros. "Its size is difficult to estimate due to lack of data, but it continues to grow", explains Nathalie Cozette, director of the specialized trade show Omyagué. In ten years, the number of exhibitors has more than doubled, from ** in **** to *** in ****. [***]

According to studies by *FPCO (***), the promotional products market will have a significant weight in France in ****: *,*** companies are active in the field, with **,*** employees involved and * billion euros invested each year.

While the life of a company may dictate the occasions for offering business gifts (***), the celebration of events remains the main focus.the holiday season accounts for **-**% of sales in this sector. [***]

Occasions to offer business gifts France, ****, in Source: ****

2.1 An important element for many companies

Over **% of French companies offer corporate gifts to their customers at least once a year. Nearly a quarter repeat the operation at least four times a year, or once a quarter or more.

Frequency of purchase of business gifts for customers France, ****-****, in %

The practice is now widely established in the business world. It also enjoys a good image: **% of companies believe that business gifts generate a positive return on investment. In particular, they help to build loyalty and improve relations with customers and employees, enhance the recipient's value, and raise brand awareness.

Key benefits of business gifts France, ****-****, in % Source: ****

All companies are involved in offering business gifts, although those with fewer than ** employees are the most represented, accounting for more than half of the total. Very large groups, with over *** employees, are the second most concerned.

Size of companies concerned by business gifts France, ****-****, in Source: ****

All business sectors are equally involved in this theme, though with a higher proportion of companies operating in the tertiary sector (***).

Business sectors of companies concerned by business gifts France, ****-****, in *Other : Real estate, construction, public works (***). Source: ****

2.2 Purchasing budgets on the rise

The average budget for a business gift is between ** and ** euros. However, companies are prepared to spend more when the gift is intended for a customer, rather than an employee.

This figure has risen in recent years, in line with the move upmarket in business gifts, as Nathalie Cozette, director of specialist trade show Omyagué, explains: "In recent years, the fine gift has taken precedence over cheap goodies, with an average price of around ** euros. Companies prefer to buy less, but better, with exceptional products and careful packaging."[***]

Average business gift budget per person France, ****-****, in Source: ****

This increase can be explained by buyers' growing interest in quality and personalization criteria, which can push up the budget.

New, more expensive trends are also gaining ground, such as the eco-responsible aspect of the gift: **.*% of buyers consider this parameter to be very important and **.*% fairly important, compared with only a third in these two categories in ****. Made in France is also in line, with **.*% of companies considering it very important when buying a business gift, and **.*% fairly important. [***]

Important factors when buying a business gift France, ****-****, in % Source: ****

Despite a rising average budget, price remains a major factor, as it ...

2.3 Beneficiaries' expectations not always met

Business gifts are still very much appreciated by those who receive them. For **% of employees, such a gift "gives pleasure". However, **% also admit that they quickly throw away the gifts they receive, or leave them at the bottom of a drawer. [***]

The recipients of these gifts want first and foremost to receive a product or service that corresponds to their tastes and interests, that will be useful to them or that they find amusing. Personalization or careful presentation are not at the top of their expectations, which can create discrepancies with the priorities identified by the companies offering these gifts.

Main expectations of business gift recipients France, ****-****, in Source: ****

These differences are reflected in the appreciation of specific products. A gift card, for example, may be considered too impersonal. "The meaning of a gift is important. A gift that shows that the giver knows the recipient well, or has made the effort to find something that suits them, is much appreciated", says Charles Huet, founder of La Carte Française. [***]

Finally, there are certain types of gifts that are rarely given, and which are much sought-after by recipients. These include travel, weekends away, shows and leisure activities, as well as ...

3.1 The market value chain

The business gifts market is highly segmented, with many different players involved in the sector:

manufacturers of various products ; importers ; distributors and wholesalers ; communication agencies ; advertisers ; etc.

The Fédération française des professionnels de la communication par l'objet (***) has drawn up a diagram showing the organization of the promotional products industry, which illustrates the diversity of the players involved. [***]

3.2 Distribution dominated by direct relationships with suppliers

More than three out of four companies purchase their business gifts directly from the supplier concerned. Trade shows and fairs are still very important, with nearly **% of companies choosing them, while retailers and distributors are contacted just under half the time. BtoB marketplaces and communications agencies continue to play a minor role.

Channels used to purchase a business gift France, ****-****, in % Source: ****

3.3 Distributors specializing in business gifts and promotional items

Although not always sought after by companies looking for gifts, there are many players specializing in business gifts, promotional items and other goodies. These are generally distributors, offering companies a range of products and services that can be used as business gifts. In France, around *** wholesalers and *,*** distributors rub shoulders in the promotional gifts and goodies market. [***]

These distributors can have a generalist positioning, offering a wide variety of products, or focus on one type of item, such as textiles for SOLO Group. Others differentiate themselves by featuring a majority of eco-responsible products, like Cadoétik or Good Act. Finally, some offer additional services and also appear as consulting agencies for object personalization and business gifts, such as Liberty and Co or Jordenen.

This attractive growth market has seen a number of mergers and acquisitions in recent years:

Jordenen was taken over by investment fund Azulis Capital in ****;[***] ObjetRama, Pépite and Pandacola merged into a new group, POP Europe, in ****;[***] Cadactuel, Créations GLF and Grand Ouest have also joined forces in a new holding company, CGC Enjoy, in ****;[***] SOLO Group acquired midocéan, a specialist in personalized promotional gifts, in ****;[***] Liberty & Co was acquired by Yamzho, specialist in promotional ...

3.4 For gift specialists, a growth segment

Specialized gift brands (***) are also major players in the business gift market. Professional customers represent a growing market for them. They can therefore put in place offers aimed at this audience, in order to appeal to companies: customizable products, specific prices, etc.

Some even tend to specialize exclusively in the BtoB market, such as Le Cadeau Français, which promotes its offer of ***% made-in-France personalized corporate gifts. Wonderbox, for its part, generates **% of its sales from corporate customers, and has made this activity a "major development focus". For example, the group supports its customers in the creation of gift boxes with personalized products and colors, as was the case with the car manufacturer Toyota. [***]

4.1 A very broad offering

The catalog of business gifts that can be bought and given is vast. In ****, French companies favored gastronomic products and gourmet parcels, followed by office accessories and champagnes, wines and spirits. Fashion accessories, leather goods and high-tech items complete the top *. Many other categories follow: textiles, decorative items, culinary accessories, various goodies such as key rings, etc.

Type of products or services purchased for business gifts France, ****, % of total Source: ****

4.2 Prices are rising, but must not become too high

The price of a business gift can vary widely, depending on the nature of the product or service offered, its characteristics, its place of manufacture and so on. According to Nathalie Cozette, director of the specialized trade show Omyagué, the average price of a business gift can be set at around sixty euros. [***]

This figure has tended to follow an upward curve in recent years as business gifts have moved upmarket, increasingly taking into account trends in eco-responsibility, made in France, personalization, etc. The price must not, however, become too high.

However, the price must not become too high, at the risk of losing customers. Good Act, a platform offering eco-responsible and personalized gifts and goodies, promotes **% of products made in France or Europe, but also keeps **% of less expensive items, generally from Asia, so as not to deprive itself of a public ready to spend less. "We're obliged to offer alternative, more competitive options to these more expensive products. Some customers, although interested, have to turn away because of their budget", explains Robin Morvan, co-founder of Good Act.

Price remains the second most important purchasing criterion for companies looking for business gifts, at **.*%, behind quality at **.*%. What's more, more than ...

4.3 Upmarket and CSR, two major trends

Traditional business gifts are still widely appreciated: gourmet baskets, bottles of wine or champagne, office accessories, fashion accessories, leather goods, etc. At the same time, however, a number of trends show that the sector is evolving and new practices are emerging.

More upmarket business gifts

The move upmarket is particularly marked for certain products, such as gourmet baskets. "Gastronomy remains at the top of the sales list, but the market is moving towards more quality", observes Nathalie Cozette, director of Omyagué. [***]

Les Autochtones, for example, promotes its baskets of local, traceable products. Ici Présent relies on the same arguments, extending its range to include cosmetics, hygiene products, textile accessories and more.

Technological products, often expensive, also remain relevant, combining modernity, innovation and utility.

Finally, the increasing personalization of business gifts is contributing to this upmarket trend, even if there is still considerable room for improvement: only **.*% of companies create a unique, personalized gift for each of their customers. **.*% vary them according to customer segmentation (***), and **.*% choose identical gifts for all. [***]

For retailers, personalization has become an almost indispensable element to offer. It is therefore becoming difficult to differentiate on this aspect, with the vast majority allowing a logo, text, specific ...

5.1 Regulatory and tax framework

The market for business gifts and promotional items is becoming increasingly regulated in France. Promotional items are defined as gifts that visibly and indelibly display the company's identity. The distribution of these products is regulated by the tax authorities, who have established the principle of no VAT deduction for goods sold free of charge or at a price well below their value, including business gifts. There are exceptions, however, and companies can reclaim VAT on :

business gifts whose unit value does not exceed ** euros (***) per gift and per year for the same recipient ; advertising displays with a unit value not exceeding *** euros (***); samples; specimen" products.

On the other hand, business gifts are a tax-deductible expense, provided that they can be considered as having been given in the company's interest. And when the total amount of business gifts offered during a financial year exceeds *,*** euros, they must be declared to the tax authorities. [***]

Incentive gifts

Article L.***-*-* of the French Social Security Code, which came into force on November *, ****, regulates gifts given to third parties. In particular, it states that benefits given to an employee in return for an activity performed are considered as remuneration. A company that offers benefits ...

5.2 Regulations governing suppliers of promotional products

Suppliers of promotional products are subject to very strict regulations. The aim is to oblige them to comply with manufacturing standards for the various products they can offer. [***]

The ROHS standard: limits the use of hazardous substances (***) in the design of electrical and electronic equipment; REACH: prevents the use of chemical products and offers better protection for the environment and the user; PEFC certification: this applies to wood products and guarantees that the wood used comes from sustainable forests; European conformity (***): allows products to circulate freely within the European Union; Oeko-Tex: human-ecological label for textile products; Cosmetics Products Notification Portals (***): information for the cosmetics market and consumers; The RED directive: for products that emit/receive radio waves; Standards NF EN***** (***).

6.1 Segmentation

• Vegea Vernon Gendron
• Cadactuel
• IGO - Plato Group
• CECOP
• Jordenen
• PF Concept France (Groupe Polyconcept)
• Le Cadeau Affaire (OVDP)
• Cadeaux d'affaires Adler
• France Cadeaux
• ObjetRama
• Liberty & Co
• La Boîte à Objets (Enesis Communication)
• Good Act
• Cadoétik
• Giffits France
• Mes Objets Publicitaires (MOP)
• SOLO Group (SOLO Invest)
• Wonderbox
• Illicado (Illi&Co)
• Concorde Proderam
• Lagardere Marketing
• Promoplus