Corporates Likely To Spend Rs. 3200 Crore On Diwali Gifts

Diwali budgets of corporates to present “gift” is expected to be touching Rs 3,200 crores this year as against Rs 2,025 crore in 2009 as a result of boom in Indian economy and mass scale availability of durable, handy tempting products at competitive cost, according to the random survey undertaken by the Associated chamber of commerce and industry of India (ASSOCHAM).

The survey has projected an increase of 60%. The primary reasons indicated by corporates are that corporate results by and large for the first and second quarters have been encouraging despite rupee appreciation hurting the exports and some sectors of the economy yet to fully recover.

The sectors which would take lead and have budgeted their expenditure for Diwali gifts distribution well in advance include among others consumer products are  pharmaceutical, IT & BPO, FMCG, Real Estate, Tourism & Aviation, Retail etc, said Mr. D S Rawat, Secretary General, ASSOCHAM.

According to estimates, the pharmaceuticals, Real Estate, FMCG and Civil Aviation all put together are likely to distribute gifts worth Rs. 2,000 crore as theses sectors have been growing at double digit growth rate and their promoters would want to cement their ties with their contacts for their business expansion.

The most sought after gift items which are likely to be form part of Diwali gifts by most of corporate include silver & gold coins, wrist watches, briefcase, brassware and silver ware, candle stands, suit lengths, handy electronics items like ipods, DVD player, and carpet etc.

According to the industry body, the only reason why corporates spend so much on Diwali is because apart from building the corporate image of the company, both internally and externally, it helps to strengthen goodwill of the company and foster long-lasting cordial relations with both employees and associates.

A rise in the culture of corporate gifting and increase in the cost of gifts can be attributed to tough competition in the market today. Besides expressing gratitude companies also try to keep their clients glued to them. Luring new customers by presenting attractive Diwali gifts to target audience is a marketing strategy frequently adopted by corporates.

The concept of corporate gifting during festive season in India is changing. The corporate houses bid to leave an ever-lasting impact on their clients, companies today go for luxury shopping and don’t mind shelling out huge amount.

Sweets, dry fruits, cakes, champagne, candles and diyas are passé. Give way for sleek, lustrous and exotic IPods, digital cameras, MP3 players, DVDs, mobile phones, LCD TVs, spa packages, silverware, swarovski, gold-plated items and fine stainless steel products

Corporate Gifting on Diwali helps in cultivating long lasting relationship with business associates and employees. On the other hand, when companies present a corporate Diwali Gift to their business partners and associates it shows the company is grateful on receiving a chance to serve. The goodwill gesture help companies to develop stronger ties with both employees and associates – the two main keys to success for any organization. Diwali Gifting will also work as brand building for the company.

It also corporate gifting on Diwali is an excellent way to maintain touch with clients. While trying to attract new customers, companies often lose focus from the existing client base. By sending a Diwali Gift companies maintain touch with their clients. This goes a long way in retain existing customers and keeping company’s goodwill intact. Effort should be made to present Diwali gifts personally especially to big and loyal customers to maintain cordial business relations.

Inlay work in marble on watches, silver & gold coins, briefcase, brass and silver ware,  table tops¸ handy electronics items like ipods  and vases seems to have emerged as a “favorite” as also have “Divinity” items ranging from Rs 400 to as high as Rs 30,000. Personalised gifts are very happening with names of the recipient embossed on everything from expensive pens to diaries and wallets.

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