The gift box market - France

1.2 A recent global market concentrated in Europe

The gift box market is a very recent market that does not exist in many countries. It is mainly concentrated in Europe.

The European market for gift boxes was estimated at * billion euros in ****. * billion in ****. France thus accounts for more than a quarter of the sales generated on a European scale, which reflects the much more mature stage of the French market compared to other countries. [***]

There are thus strong differences between countries, with France being more generally more fond of gift sets. For example, while the average basket is around €** in France, it is €** in the Netherlands. [***] Moreover, many countries are not receptive to the concept, which explains the failure of some players to convince certain markets

Wonderbox Managing Director Fabrice Lépine explained in ****: "We tried and gave up in four countries: Portugal, Poland, Germany and Japan, each time for different reasons. We gave up on Portugal after establishing ourselves at the height of the crisis, despite rather healthy market fundamentals. In Germany and Poland, we encountered cultural reticence and a different conception of leisure and weekends, with the added bonus of distribution networks that were too complex to implement. In Japan, a gift is first and foremost ...

1.3 A mature French market

The French market for gift sets was estimated at *** million euros in ****. *** million in ****. More than *.* million gift sets were purchased in ****, compared with * million in ****. [***]

It appears that the recent market for gift sets has experienced a growth that accelerated in **** and slowed down from **** onwards, which seems to reflect the maturity of the gift set market.

Size of the French gift box market France, ****-****, in millions of euros and units Source: ****

Almost non-existent in the ****s, the market developed very quickly and relied on the craze for novelty. However, players must now develop new strategies to face competition and find new growth drivers, as the enthusiasm effect of novelty is now a thing of the past.

Innovation is the sector's main challenge and the main lever for growth. In addition, the players are also betting on the Internet, a wider range of prices and niche offers. [***]

2.1 Consumer Profile and Consumption Patterns

Regained confidence and curiosity for new experiences

Between **** and ****, the period was marked by a deep crisis of consumer confidence in gift sets. Indeed, the novelty effect gave rise to an ultra-competitive market, pushing some players into bankruptcy and making it impossible for their distributors to honour gift box offers. The government authorities have therefore decided to strengthen the Tourism Law of July **, **** by publishing an implementing decree in **** to better protect consumers from the sale of gift sets

Thus, since * er as of January *, ****, issuers of gift boxes must, like travel agents, be registered with Atout France, France's tourism development agency, for greater transparency. They are also subject to strict liability towards consumers for the performance of their contractual obligations. [***]

The rapid growth of the gift set market, which particularly developed in **** and ****, has been driven by consumers' growing interest in new experiences and their increasing preference for intangible gifts. In ****, the Observatory E. Leclerc des Nouvelles Consommations reveals that **% of French people say they attach more importance to "lived experience than to material goods". Moreover, **% of them are very curious about the idea of trying new experiences

Typical consumer profile

A study by Action Plus highlights the typical profile ...

2.2 Seasonality of sales

The graph above represents the proportion of searches for a given clé́ word in a specific region and for a specific period of time, compared to when the use of that clé́ word was highest (***). Thus, a value of ** means that the keyword was used less often in the region concerned, and a value of * means that there is insufficient data for this keyword.

The frequency of search for the word "gift box" on the Internet is characterized by a cyclicity highlighted by the graph below. Each year, search interest peaks in December, with a multiplication of the Google Trends index by a factor of *. To a lesser extent, search interest also increases in spring, especially in June.

Most gift set sales are concentrated at Christmas time and, to a lesser extent, in the spring, which is a good time for weddings, and on Mother's and Father's Day. [***]

Search interest for the term "gift set" France, ****-****, Google Trends Index Source: ****

More specifically, according to a study by Action Plus transcribed by LSA The holiday season is estimated to account for **% of gift set sales. Mother's Day and Father's Day accounted for **% of sales, while **% of the gift sets sold were ...

3.1 Economic model of the players

The graph below describes the price breakdown of a Wonderbox **.* euro holiday package and thus provides an overview of the distribution of the remuneration of the market players. The partner receives approximately **% of the price, while the issuer of the box receives **% and the seller **%.

Distribution of the price of a box set between the different players France, ****, in % Source: ****

The companies are paid on the discounts negotiated with service providers in return for the possibility for hoteliers, restaurateurs, etc. to boost their attendance. The gift box market is based on * types of players

The transmitter of the box

In addition to the box set specialists, tour operators, tourist offices, hotel chains, etc., also operate.

The issuer of the boxes (***) selects the service providers whose offers it is going to propose in its boxes and/or on its website, and concludes a partnership contract with them. This contract defines the offer proposed during the term of the agreement, in particular the service provider's commitments to consumers and their sanctions in the event of non-compliance, as well as the amount of the commission that the issuer of the box will retain when it reimburses the service provider for the price of the ...

3.2 The main actors

The gift box market is highly concentrated, with two players sharing almost **% of the market share, namely Wonderbox and Smartbox. In addition, the number * in the market, namely Dakotabox, was acquired by Smartbox in ****.

Market shares in value of gift box players France, ****, in % Source: ****

The market is organised around two main types of players: generalist giants that focus on innovation and diversify their offer and new entrants that position themselves on a niche offer to stand out. Thus, Smartbox offers *** different boxes, i.e. **,*** activities with **,*** partners, while Wonderbox offers *** boxes and **,*** activities with **,*** partners. [***]

3.3 The distribution of gift boxes

The large influx of customers generated by hypermarkets and supermarkets, combined with their sales and marketing clout, enable them to capture most of the end customer base. They are therefore essential partners for gift box designers, but also formidable potential rivals. Indeed, they may one day launch their own white-label boxes on a large scale. Fnac already distributes more than *,*** service activities to be offered via its website, in partnership with the French challenger Happytime

Faced with this threat, box designers are mobilizing: Smartbox, for example, has developed its own distribution network with a dozen agencies in France (***). However, nearly **% of Smartbox's customers still make their purchases in supermarkets. [***]

Large surface areas are still in the majority. In ****, Specialty Supermarkets, such as Fnac, Cultura and Boulanger, generated more than half of the sector's sales, while Food Supermarkets accounted for **% of sales. The Superstores therefore account for the vast majority of sales of gift sets.

Travel agencies, such as Thomas Cook, Fram and Cora Voyages, are also increasingly used as sales outlets for gift sets.

Breakdown of gift set sales by distribution channel France, ****, in % Source: ****

In addition, marketing can be done physically or via the Internet: a dedicated page on the ...

4.1 Product typology

There are many different types of gift sets, which are distinguished by the duration of the activity (***), the theme of the activity and its price.

The distribution of Wonderbox gift box sales highlights the most popular types of products. Staycation boxes represent **% of Wonderbox's gift box sales but also represent **% of the overall gift box market. Sports, leisure and catering activities then each account for around **% of sales

Breakdown of Wonderbox gift set sales by type of offer France, ****, in % Source: ****

Wonderbox's best sellers also give an overview of the most popular types of boxes. Among the bestsellers are: the Unusual Night as a Duo, Weekend in Love, * Days Charm and Delights, * Days of Dreams or Parachute Jumping and Extreme Activities. [***]

4.2 Prices

The average price of gift boxes has decreased in recent years, from ** euros in **** to ** euros in ****. This decrease is explained by the expansion of price ranges, in particular the development of more accessible products. The prices of gift sets can thus vary from ** euros to more than **** euros.

Average price of a gift box France, ****-****, in euros Source: ****

4.3 Main challenges and development areas

Sourcing et contrôle de qualité pour garantir la confiance des consommateurs

Apparu dans les années ****, le marché des coffrets cadeaux s'est développé en un temps record, notamment avec l'apparition de Smartbox en **** et de Wonderbox en ****. Le succès des coffrets cadeaux lié à la nouveauté a conduit à la multiplication des acteurs. En ****, plus de ** acteurs s'étaient positionné sur le marché. Entre **** et ****, et accroissement de la concurrence a conduit une vingtaine d'acteurs, comme Magic Day, à la faillite et donc à l'impossibilité d'assurer leur promesse. De nombreux consommateurs n'ont ainsi pas pu profiter des activités pour lesquelles ils avaient déjà payé ce qui a conduit à une défiance à l'égard des coffrets cadeaux. [***]

Dès lors, un des principaux enjeux du marché est d'assurer la qualité des services offerts et des prestataires pour garantir la confiance des consommateurs. Wonderbox a ainsi compris l'importance de la qualité ce qui explique en grande partie son succès. Les prestataires de Wonderbox doivent répondre aux critères très précis du cahier des charges établi par la direction marketing. Ils sont ensuite régulièrement évalués par les clients (***), et soumis aux tests des clients mystères ...

4.4

5.1 French regulations

For services falling within the scope of the Tourism Code, publishers of gift sets are subject to the provisions relating to the sale of trips and stays (***) of the French Tourism Code the law n° ****-*** of July **, **** on the modernization and development of tourist services ,

The following services are not affected by these provisions of the Tourism Code: "well-being", "adventure", "gastronomy", "workshops" or "entertainment". They are only affected if they are included in a travel and stay package or are combined with a travel service .

Issuers of tourist packages must, in particular, register with the Register of Holiday and Travel Operators or declare themselves under the freedom to provide services if they are established in Member States of the European Union.

In addition, they are automatically responsible for the proper performance of the obligations arising from the contract. The user can thus claim compensation from the issuer in the event of non-performance or improper performance of the service, instead of turning to the service provider.

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6.1 Segmentation

• Smartbox Group
• Wonderbox
• Ideal Gourmet
• Naturabox
• Tick & Box
• Masterbox
• Reworld Media
• Unify Groupe (Au Feminin)
• Gretel (Au féminin)
• Nuoo (Haco)
• Woufbox
• Beautiful Box by Aufeminin