US. A new report from luxury goods consultancy Unity Marketing shows retailers how to target the gift buyers’ decision making process during the year, and at key seasonal selling periods such as Christmas.
Called “Gifting: The Dynamics of the Gift Giving Consumer” the study covers how shoppers feel about gift giving and receiving, attributes of a good gift, how they set a gifting budget, how they select across different categories and why traditional specialty stores often fail to meet their needs.
As many retailers are already finalising plans for their most important selling season (the last two months of the year typically generate from 25% to 40% of annual sales in domestic markets) gift shopping will be even more important as retailers work to make up for the year’s weak first half.
“Convenience is gift shoppers’ top priority this year,” said Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don’t Need. “Shoppers seek special gifts that are just right for the recipient.”
From Unity’s research with gift givers, the company has pinpointed several strategies for retailers to increase gift sales.
* Focus on enhancing the “gifting” experience, rather than on the gift:
The goal of gifting is to emotionally connect the giver with the recipient. The gift itself is the means to an end, and that end is an emotional connection between individuals. Gift shoppers will reward retailers that help them enhance the gifting and gift shopping experience.
* Know qualities shoppers want in a gift:
With connecting the goal, gift-givers seek gifts that show they know the recipient. After finding the right item, gifters want quality and craftsmanship, uniqueness and an item that expresses their own and the receivers’ individuality. Giving the shopper a way to customise the gift and to add a special touch just for the recipient will be rewarded.
* Convenience is key in shopping:
Gift buyers want a special, emotionally evocative gift and they want first and foremost convenience. To maximize gift sales, retailers should compile a list of the top gift ideas for specific relations (such as husbands, wives, children, coworkers) and specific price points (such as US$25 and under; US$26-US$50; US$51-US$100; US$100+) and post this prominently instore. If space is available, end cap displays or tables stacked with gift ideas draw crowds.
* Increase store penetration:
Gift shoppers value the personal touch. They are looking for an emotional experience in the gift they choose and they want knowledgeable, well-trained sales help to guide them. As some retailers are de-personalising shopping, retailers that raise the level of personal service will be greatly rewarded.
*Target the gifters’ decision process:
Gift buyers have a number of critical decision points in the gift shopping process. They must select something that the individual wants within their price range. To help gifters find the right gift, prepare your staff with a list of open-ended questions they will help shoppers discover the perfect gift. Make sure sales staff know the stock and can intelligently interview shoppers. The goal of gift retailing is to have the right item, at the right price, for the right person on the right occasion.
*Presentation matters:
In gift giving, presentation counts and a gift wrapping service can even become a new profit centre. Retailers should ensure their name is included somewhere in the gift package or on the gift card.
*Positioning
Branding the store and differentiating it as a good place to shop for gifts is critical. Make gifting a key feature of the brand by enhancing the shoppers’ gifting experience, offering novel gift ideas and gift presentation options. Gifting is a rare opportunity for a store to touch two consumer segments – the buyer and the recipient.
