The $65.2 billion gifts and home decorative accents market, having already increased 72% from its 2002 level of $37.9 billion, is now poised for further growth, according to a Unity Marketing study.
The giftware segment, defined as items designed and manufactured to be bought and given as a gift or “collectible” items, grew at a faster compound annual growth rate (14.7%) than that of home decorative accents (9.4%) from 2002 to 2007, Unity found.
Below, additional findings from the study.
Gifting vs. Personal Use
Consumers who buy giftware are, not surprisingly, more likely to give the purchase as a gift (69% do so), whereas home decorative accents purchases are more likely for personal use (75%).
Although women are more active buyers of gifts and home decorative accents, men spend more, averaging $1,524 per year to women’s $1,406:
- Younger consumers (age 24-34) spend the most, followed by those age 55-65: $1,581 and $1,445, respectively.
- Those who earn more than $100,000 per year spend three times more than those who earn less than $50,000 ($2,555 vs. $840).
“Where people shop for giftware has changed dramatically in the five years since we did our last study,” said Pam Danziger, president of Unity Marketing and author of the report.
“The most notable change is how often shoppers are turning to the internet to make purchases of these goods. In 2007 the internet was the second most important venue for giftware shopping, trailing only discount department stores.”
The top three shopping venues (of the last item purchased), by giftware product category:
- Discount department stores were the favorite for four categories:
- Baby & infant giftware (51%)
- Character/licensed giftware (44%)
- Collegiate licensed giftware (22%)
- Occasion-specific gifts (34%)
- The internet and specialty card & gift stores were also popular.
- However, gift specialty stores did not fare well overall:
- They accounted for just 7% of giftware product sales in 2007.
- The number of such shops declined 21% in the past five years, from 75,102 in 2002 to 59,032 in 2007.
In the home decorative accents category, discount department stores were again often the No. 1 choice of shoppers:
- Specialty home furnishings stores captured the No. 2 position for art & wall decor, dinnerware & tabletop items, and home textiles & decorative linens.
- A surprise category was craft & hobby stores – the No. 2 destination for boxes, tins & music boxes for 17% of consumers.
About the study: The Unity Marketing “Gifts and Decorative Accents Report 2008″ is based in part on data from a survey of 1,644 recent buyers of giftware and home accent products. The average income of survey respondents is $75,100; average age 42.4 years; 68% female and 32% male.