Top 10 challenges for personalised gift companies?

Top 10 challenges for personalised gift companies

Personalisation has seen significant growth in recent years, with research estimating that the personalised gift market in the UK alone would reach £1 billion in 2022. This has been supported by customer research, which shows that consumers are willing to spend more on products that can be personalised.

While many businesses have started to take advantage of this recent trend, some businesses are still struggling to understand what personalisation is, how the process works and how they can begin to meet personalisation businesses. Here, we answer all these questions.

What is the personalised gift market worth?

Recent research estimated that the personalised gift market in the UK would reach £1 billion in 2022. While this is yet to be confirmed, the personalisation industry has certainly seen a boom in recent years.

Customer research further supports these sentiments, with data indicating that consumers are happy to spend between 7% - 20% more on products that offer customisation. Additionally, consumers have indicated that they are more than willing to provide brands with their personal and preferential data if they [the brands] take product personalisation seriously.

How do personalisation businesses work?

Personalisation businesses in the UK typically work by using data and technology to tailor products, services, or experiences to individual customers.

This can include using data on customers' preferences, past purchases, and behaviour to make personalised recommendations, customising products or packaging, or creating personalised marketing campaigns.

By leveraging customer data, personalisation businesses can offer more tailored and relevant experiences, which can help to increase customer engagement, loyalty, and revenue.

Examples of personalised gift businesses

There are several different types of personalisation businesses, each with their own unique approach to personalisation.

1.   Pre-printed Retail Gifts

For decades pre-printed gifts have been available in gift shops on spinners and racks.  Examples include History and Heraldry one of their original products was square magnets similar to https://www.adventa.com/gb/adventa-square-fridge-magnet .  This has the big challenge of stock control, popular names selling out and new trending and more ‘wacky’ names never being available.

The Share-a-coke campaign was a simple but clever concept that had a big impact on sales for a well-established brand.  This had no obvious stock control issues, but the likelihood of finding your name always seemed slim!

2. Print in-store Retail gifts

This has been done for a while in Sports shops to add you name to the sports kit.  Other examples include engraving or personalised label in pop-up stores in premium department eg Selfridges stores specially at Christmas.  Challenges here are with staffing costs, unreliable software, slow print/personalization process, expensive space and with our local sports club lack of stock on some letters of the alphabet!

One system that has really perfected in-store personalised gifts is www.my-moments.com it is space efficient and fast, plus has the massive benefit of not having to commit to printed inventory that may or may not sell, designs can be added or switched off remotely – a dream for stock control!

3. Individually named Promo gifts

This is the next step from solely printing a generic brand logo or message, actually including the recipient’s name on the product creating an awesome reaction and a much higher ‘keep me’ factor!  Fun examples include desk calendars using software like XmPie to spell your name in flowers or balloons, etc!  Challenges with this system is that it relies on data being accurate, from experience expect last minute requests for additional names which become a hassle, slow and expensive. Adventa have a wide range of products that can simply and easily be printed and created on demand from an office toner printer, simply get a design preset, see the Uprint system in action here https://www.youtube.com/watch?v=gqxoHS5Mjzc

4. Online Personalised Gift Companies

These companies represent the biggest part of the market.  Examples include Zazzle and Funky Pigeon.  An endless range of products is available, check out these best-selling lines where the blank products are mass produced and supplied wholesale to printers from Adventa including Canvas, Drinkware, GlitterBlox, Keyrings.  The challenge with this business model is being ‘lean’ in the process.  Order values may not be huge and each one is different!  Make sure you invest in proven software and consider the whole process from order to dispatch, cutting out ‘touchpoints’ can make or break an print-on-demand gift production process.  Check out this neat process example here https://www.youtube.com/watch?v=f2Li6Z7k6xo

Another challenge is the seasonality of demand, expect huge peaks around events like Mother’s day and specially Xmas where extra temporary staff will be required to produce Photo Baubles and Domes.  Well worth considering the reliability of your supply change, we know at Adventa how important it is to cope with unexpected peaks in demands!

5. Technology and software businesses

Several companies have developed personalisation technology and software that can be used by other businesses to deliver personalised gifts, services, or experiences.  If you are looking for software make sure you get a couple of references you can speak to, as from experience software ‘features’ promises can turn out rather hollow!  Many major companies end up taking this in-house to deliver the results they need.

One neat feature is to cross sell at the basket, once consumers have spent time creating a design of say a greeting card there is a high chance they will want to simply add another product like a keyring with the same design.  It is specially powerful if you can actually visualise their artwork within the extra product.

Where can you connect with personalisation businesses?

With an increased demand for customisation from customers, businesses should be looking to see where they can incorporate personalisation into their product offerings. However, for many brands, the cost of carrying out customisation directly is not feasible.

This is why it’s essential to connect with other personalisation businesses that specialise in carrying out such activities. Events such as the Personalisation Experience (part of FESPA) look to bring brands together with printers and other businesses to see how they can make personalisation a reality in their businesses. You never know, Adventa may even be able to help get you a free ticket!

How can Adventa help your business with personalisation?

At Adventa, we specialise in delivering a range of customisable products, such as wall art, desk decor, candles and more. These products are specifically designed for lean manufacturing.  Contact us today to see how we can help your business on its personalisation journey.

Adventa also offer a group innovation brainstorm video call – it is amazing what focusing the mind can really achieve!  We share experiences and successes, you can tell us about your challenges, we put ourselves in your shoes to deliver solutions and create new and unique products.

The personalisation market has seen a significant boom in recent years as customers increasingly seek out customisable products and services. There are various types of personalisation businesses that each operate differently. Brands should consider the benefits of implementing personalisation, such as increased customer loyalty, engagement and total revenue. However, this should be carefully weighed against the associated costs in order to determine whether it’s feasible.