The gifting market in India for apparel brands: Insights from Gaurav Bhagat, MD, Consortium Gifts

As an entrepreneur and a marketing enthusiast, I have observed that the corporate gifting market has emerged as a lucrative opportunity for brands across multiple sectors in the last few years. According to a report by the Retailers Association of India (RAI), the corporate gifting market here is expected to surpass Rs. 1,20,000 crore by the end of 2024, with a compound annual growth rate (CAGR) of 10 per cent – 12 per cent. What really catches my eye, though, is how apparel brands are making bigger moves and grabbing a larger chunk of this pie every year.

Companies are no longer just looking for your standard gifts—they want items that stand out, represent their brand values and make a lasting impression. This is where apparel brands are stepping in, offering a range of premium clothing and accessories that are becoming highly sought-after gifts. In fact, fashion and apparel gifts now make up nearly 20 per cent of the total corporate gifting market.

Start-ups vs. Established Brands: Who wins?

As an entrepreneur myself who also trains and guides other entrepreneurs in achieving their goals, it goes without saying that start-ups face fierce competition from both the established and contemporary players. Hence, building agility is non-negotiable for them, which gives them an edge in the market. They can adapt quickly to changes in the environment without having to go through complicated processes. It allows them to pivot their business model or product offerings to meet the needs of their customers almost instantly. On the other hand, established brands have the advantage of name recognition and extensive distribution networks, with brand loyalty. They also have the necessary tools and resources in place with a wider budget. Hence, depending on customer needs, both players occupy different markets.

For instance, brands like The Souled Store and Bewakoof have carved out niches by offering quirky, customisable apparel that resonates with young, dynamic companies. On the other hand, larger brands such as Fabindia and Raymond dominate the high-end corporate gifting space, particularly in sectors like finance and law, where premium quality and brand prestige are crucial. Personally, I think the future of corporate gifting will see a balance between the creativity of start-ups and the reliability of established brands.

In my 24 years of working with companies across the globe, I’ve noticed that brands that align their offerings with corporate needs during key seasons make the most significant impact. For example, during festive seasons, companies seek high-quality gifts that promote long-term loyalty. Curating collections tailored to seasonal gifting trends is a strategic way for apparel brands to capture corporate clients.

Winter apparel like jumpers, scarves and gloves are especially popular during year-end celebrations, while lighter fabrics are ideal for mid-year employee appreciation events. Custom apparel can also be thoughtful gifts for company anniversaries, product launches or major corporate milestones.

We’re already seeing apparel brands tap into corporate gifting. Uniqlo India, for instance, partnered with a leading financial services firm in 2023 to provide personalised fleece jackets as part of a winter employee appreciation program. The move boosted its brand visibility and strengthened the connection between the company and its employees, who proudly wore the jackets to corporate events.

Nike did something similar, launching a customisable line of trainers for a tech start-up in Bengaluru. It even integrated the start-up’s logo into the design, which led to a 15 per cent jump in Nike’s corporate sales in that region.

Apparel gifting across industries

Breaking down the corporate gifting market by industry allows apparel brands to tailor their offerings more effectively. For instance, we work with some of the leading global tech companies. This industry is known for its youthful workforce and is a prime target for casual, trendy apparel such as hoodies, polos and T-shirts. To further enhance the appeal of these items, we personalise them with embroidered logos or individual employee names, etc. In contrast, what I have seen with Finance and Consulting is that these sectors prefer more formal and high-quality pieces which serve as premium token of appreciation. We have witnessed success with items like tailored shirts, blazers or even luxury accessories such as scarves and leather belts, that reflect their professional environment.

On the other hand, the hospitality and tourism industries seek versatile gifts that can be worn both casually and formally. For them, we tailor lightweight, travel-friendly clothing, customisable tote bags or caps which are a good blend of style and practicality, also ideal for employees who are frequently on the move.

The power of personalisation, sustainability and AI

In today’s corporate world, personalisation is the key. Companies want to offer their employees gifts that reflect their corporate identity while still being thoughtful and unique. Apparel brands are tapping into the latest trends in customisation and branding. We offer them various ways to enhance personalisation using techniques like custom embroidery, logo printing and name personalisation to create distinctive gifts. Customisation also allows brands to communicate corporate values.

Coming to sustainability, let me put this very clearly that sustainability is not just a buzzword; it’s a necessity for the future of corporate gifting and any business that wants to thrive. As businesses prioritise environmental and social responsibility, the demand for eco-friendly corporate gifts has grown substantially. A 2024 study by GlobalData found that 58 per cent of corporate buyers now prioritise eco-friendly options in their gifting decisions.

For apparel brands, this means investing in sustainable fabrics, ethical manufacturing processes and carbon-neutral delivery methods. Brands such as Patagonia and H&M Conscious have found success in the corporate gifting space by offering stylish, sustainable options. Start-ups focusing on zero-waste fashion or using eco-conscious materials are also gaining traction, as corporations increasingly seek to align their gifting practices with their environmental goals.

Since last decade, I have also observed the growing popularity in eco-friendly packaging options, as businesses increasingly seek end-to-end sustainable gifting solutions. Another trend that is hard to miss is the impact of digital platforms on the industry. Now, with just a few clicks, businesses can browse digital catalogues, customise apparel and place bulk orders. Brands like Zilingo and Printrove are already capitalising on this trend, offering platforms that streamline the entire gifting process.

In 2024, we’re also seeing artificial intelligence (AI) and machine learning entering the corporate gifting scene. These tools are helping companies make smarter gifting decisions by predicting clothing sizes, styles and even colour preferences based on past orders or employee demographics.

As the Founder and Managing Director of Consortium Gifts, one of Asia’s leading corporate gifting companies, Gaurav Bhagat has transformed the gifting industry over the past 25 years. His distinguished clientele includes giants like Microsoft, Amazon, Coca Cola, EY, Maruti, Shantanu & Nikhil, Adobe and Netflix amongst others.

Related

Stay updated on your topics of interest with our handpicked news and articles.

Submit

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}