Gifting one's way to business potential
Market for presents, comprising promotional items, giveaways and welfare products, thrives as it enhances consumer relations, boosts purchases and fosters employee-employer ties
According to the white paper jointly released by RX Huabo and Kantar, there were only 50,407 registered and existing companies in the gifts industry as of 2022.
Statistics from the white paper showed that there are currently over 100,000 small and medium-sized gift companies, along with over 4,000 large gift companies.
According to the report, more than half of the total orders for a single supplier consisted of less than 10,000 pieces. Over 60 percent of orders were valued at less than 3 million yuan each in 2023. In terms of volume, about 75 percent of single orders comprised fewer than 300 pieces.
However, the industry is growing, and powered by emerging retail enterprises and those venturing overseas.
"This year, all of our fairs are likely to experience growth, with a projected 7 percent increase in average exhibition coverage and revenue," said Shen.
RX Huabo's gift exhibitions have grown from having just over 100 exhibitors initially to nearly 10,000 exhibitors presently.
She said that promotional and marketing products are expected to maintain robust momentum, driven by rising consumption among product companies such as liquor producers and electric vehicle manufacturers.
In the past, growth engines stemmed from formula milk producers who acquired more promotional presents, or insurance companies in the finance industry.
The gifts sector in China is extending its reach overseas, with RX Huabo set to launch its inaugural overseas exhibition this September in Indonesia.
The show is set to feature around 500 suppliers from China, with preparatory workshops in advance to facilitate overseas market expansion, Shen said.
"A growing number of Chinese companies, including electric vehicle and mobile phone producers, are venturing abroad to explore market opportunities," she said. "As they eye more overseas consumers, we're going along with them."
Plans for gift exhibitions in the Middle East and Vietnam are also afoot. "In these markets, middle-income families are rapidly expanding, with a demand for higher-quality gifts," she added.
