If retailers want to stand out in an increasingly overcrowded and competitive marketplace, they need to start offering personalised gifts.
According to research by data and analytics firm, GlobalData, giving consumers the opportunity to personalise gifts is key for retailers wishing to differentiate themselves.
Millennials in particular are buying into bespoke, one of a kind gifts for their loved ones, with under 35s more likely to personalise a gift compared to older consumers.
One factor driving personalisation in gifting is the current trend towards monogrammed accessories, for example mugs and notebooks featuring the consumer’s initials.
Retailers targeting young consumers must provide personalised products and gifts that can be customised to capitalise on this movement.
Many retailers targeting these shoppers are not making the most of this opportunity, says retail analyst Eleanor Parr.
“The online pureplay could benefit from having dedicated, userfriendly webpages offering monogram and personalised gifting, as the likes of UK stores notonthehighstreet and Next are already offering this.”
Personalisation will come at an extra cost for retailers but if they want to target millennials successfully they need to be able to offer these products at competitive prices.
“One way to overcome this barrier is to provide this service only on margin-rich products, for example, cotton makeup bags or t-shirts where the basic product can be cheaply imported in bulk then printed, embossed or embroidered locally or closer to the end of the supply chain.”
By Marion Gerritsen
