Introduction
Branded items are a great choice for corporate gifting because they help people remember your company. When you give someone a branded gift, like a pen or a mug with your company’s logo on it, they’re more likely to think about your business in the future. It also shows that you care about your company’s image and want to leave a good impression. Plus, branded gifts can be useful and of good quality, which makes them even more appreciated. So, whether you’re giving gifts to clients, partners, or employees, branded items can be a smart and effective way to promote your brand and build relationships.
Recent surveys show that the corporate gifting industry continues to grow, as businesses dedicate larger portions of their marketing budgets to these initiatives. Branded corporate gifts not only act as a form of advertising, but also aim to create positive associations with a company’s image. They ultimately support larger business goals such as driving sales, boosting employee morale, attracting talent, and developing loyalty.
As this trend gains more traction, questions arise around selecting the right gifts that properly represent a brand. Companies must weigh factors such as quality, usefulness, presentation, and perception when deciding on giveaway items. Additionally, the gifting space has seen more demand for eco-friendly and socially conscious products.
With corporate gifting’s rising prominence, businesses must strategically consider how to leverage branded merchandise for maximum impact. This requires an understanding of key benefits and drawbacks, creative gift ideas tailored to recipients, and best practices for sourcing, customizing, and distributing promotional items.
Pros of Branded Corporate Gifts
Branded corporate gifts have several advantages that make them a popular choice for companies looking to build rapport with clients, employees, and partners. Some of the main pros include:
- Recognition Factor: Branded gifts are immediately associated with the company that gave them. Recipients will recognize the brand every time they use or see the item, reinforcing brand awareness and recognition. This creates ongoing impressions long after the initial gift exchange.
- Brand Awareness: Branded corporate gifts are an effective marketing tool for increasing brand visibility and reach. They essentially turn the recipient into a brand ambassador who advertises the company whenever they use or display the gift. The more unique and useful the item, the more impressions it will make.
- Goodwill: Useful branded items are appreciated by recipients and foster goodwill, reflecting positively on the gifting company. Branded gifts show the recipient that the company values them enough to invest in a high-quality item. This helps build rapport and loyalty with clients and employees.
- Customization: Most branded items can include custom engraving or printing with the recipient’s name or a personal message. This personal touch makes the gift more meaningful.
- Cost-Effective: Ordering branded gifts in bulk quantities allows companies to take advantage of bulk pricing and discounts. The cost per unit is very reasonable considering the branding and marketing benefits.
Cons of Branded Corporate Gifts
While branded corporate gifts can be effective, they also have some potential downsides to consider:
Can be expensive – Branded items often cost more than generic gifts, especially if they are custom-made or imprinted. The overhead involved in branding and customization gets passed onto the customer. For a large volume of gifts, the costs can add up quickly.
Perceived as cheap promotion – Recipients may see branded giveaways as a low-effort attempt at promotion rather than a meaningful gesture. They may assume the company distributes these items in mass quantities purely for marketing purposes, rather than as a personalized gift.
Lack personalization – With branded items, customization options are often limited. It’s hard to make a branded gift feel special or tailored to the recipient. The gifting feels more impersonal.
Limited usage – Recipients may not have much practical use for branded knick-knacks and tchotchkes. These types of gifts often get tossed in a drawer and forgotten. They don’t provide lasting value.
Environmental impact – Branded giveaways add to waste and clutter. If recipients don’t want or use the items, they end up in landfills. Even recyclable items require resources to produce.
Oversaturation – In some industries, branded giveaways are overdone. Recipients suffer from “logo fatigue” and don’t give the gifts much attention.
Alternatives to Branded Gifts
While branded corporate gifts are popular, there are some alternatives companies may want to consider:
Local Artisan Goods
Purchasing gifts that are locally handmade and sourced can be a great way to support small businesses and artisans in your community. This shows a more thoughtful approach compared to mass-produced branded items. Local pottery, baked goods, art, jewelry and more make excellent gift options. The recipient will appreciate the uniqueness of the gift and that it came from a local creator.
Gift Cards
Gift cards to popular shops, restaurants or experiences are an easy gift option. They allow the recipient to choose something they’ll truly enjoy. Gift cards often feel more personal compared to cash gifts. Opt for gift cards that align with the recipient’s interests or hobbies.
Charitable Donations
Making a donation to a charity meaningful to the recipient shows you care about the causes they care about. Print a customized certificate detailing the donation for a heartfelt gift. Popular charity options are donating to the recipient’s favorite non-profit, school, animal shelter or other cause. This allows them to make a difference.
Factors to Consider
When deciding whether branded items are a good choice for corporate gifting, there are several key factors to take into account:
Budget
The budget available will play a big role in determining if branded items make sense. Branded gifts from major companies can be more expensive than generic unbranded items. If you have a large gifting budget, branded items may be feasible. But for smaller budgets, generic items or products from lesser-known brands may better fit your price range. Consider what you can afford per recipient.
Recipient Preferences
Think about who the recipients are and what they would appreciate. Branded items tend to be more popular with younger demographics who follow certain brands. Older recipients may not care as much about big brand names. Also, consider if the recipient has any particular likes, dislikes or values that would impact their enjoyment of a branded gift. Gifting something aligned to their preferences makes a gift more meaningful.
Gifting Occasion
The occasion for the gift should factor into the branding decision. Branded items for client gifts or referral thank yous may be appropriate. But for employee recognition moments or holiday gifts, a generic unbranded item could work just as well. The occasion sets expectations. A highly branded gift may not fit a more personal gifting moment.
Popular Branded Gift Ideas
Branded corporate gifts come in many forms, but some of the most popular branded items given out by companies include:
Tech Accessories
Technology accessories with a brand logo make excellent corporate gifts. They are practical items recipients can use every day while also displaying your brand. Some top branded tech gift ideas include:
– Power banks – Portable phone chargers with your logo will get used frequently. Opt for sleek, compact designs.
– Wireless earbuds – With various styles and price points available, branded wireless earbuds make both affordable and premium gift options.
– USB flash drives – Though declining in popularity, custom flash drives with lots of storage can still be useful.
– Mouse pads – While not high-tech, a mousepad with branding can be a desktop staple. Choose quality materials.
– Laptop bags – For a larger gift, a branded laptop bag or backpack makes a lasting impression. Select durable, weather-resistant materials.
Luxury Items
Higher-end corporate gifts can help convey a prestigious brand image. Luxury items employees or clients will appreciate include:
– Leather goods – Branded wallets, handbags, briefcases, or portfolios have a luxury feel. Opt for full-grain leather.
– Fountain pens – A classic engraved pen conveys tradition. Choose lacquered or gilded finishes.
– Cufflinks or jewelry – Metallic cufflinks and branded lapel pins add sophisticated flair.
– High-end spirits – For appropriate recipients, branded bottles of fine whiskey or wine can make impressive gifts.
Food Baskets
Gourmet food baskets allow recipients to sample delicious treats displaying your logo. Ideas include:
– Fruit baskets – Packed with fresh, delicious fruits and branding.
– Bakery gift boxes – Cookies, cakes, pastries, and other baked goods presented nicely.
– Chocolate towers – Elegant stacks of gourmet chocolates bearing your logo.
– Coffee gift baskets – Gourmet coffees, mugs, and more for the coffee lover.
– Wine/cheese packages – A branded basket with wine, cheese, and other pairings.
The key with food gifts is opting for quality over quantity – focus on a few exquisite items rather than piling in extras. Tasteful presentation of all items also adds to the impression.
Ordering and Sourcing Branded Gifts
When ordering branded corporate gifts, it’s important to find a reputable vendor that can deliver quality products on time. Lead times can vary greatly depending on the type of item, quantity, and any customization required.
Working directly with a promotional products company or distributor is recommended over using third-party gift basket companies or online marketplaces. This allows you to communicate directly, get product samples, and ensure your branding is applied correctly.
Some tips for working with vendors:
– Get all costs and production time estimates in writing. Rush orders usually incur extra fees.
– Ask for physical samples before placing a large order. This allows you to inspect quality.
– Provide the vendor with logo files and brand guidelines to follow. Vector formats like EPS work best.
– Request progressive proofs and mockups during the production process. This allows catching any errors early.
– Build in extra time for shipping, especially for imported items. Shipments can face delays at customs.
– See if they offer warehousing or drop shipping options to ship gifts as needed. This provides more flexibility.
– Make sure your artwork and recipient addresses are provided by the artwork deadline. Missed deadlines can delay an order.
– Understand what happens if an item is defective, damaged, or the order is short. Good vendors will make it right.
Allow 2-6 weeks for production depending on the complexity of the item. Simple products like pens may only take a couple weeks, while travel mugs or tech accessories require more time. Planning ahead and communicating with your vendor will help ensure branded gifts arrive on schedule.
Customization Options
One of the best features of branded corporate gifts is the ability to customize and personalize the items. This makes the gifts feel more special and meaningful compared to generic off-the-shelf items. Here are some popular customization options to consider:
Engraving
Engraving the recipient’s name or initials is a classic way to personalize a corporate gift. Many items like pens, laptop bags, and drinkware can be engraved with text or logos. Engraving adds a refined, upscale touch to any promotional item. Most engraving is done with laser engravers, which produce clean and consistent lines on metal, plastic, and wood surfaces. When ordering engraved items, double check the spelling and engraving information to avoid errors.
Personalization
Going beyond engraving, many corporate gifts can be personalized in different ways. Leather goods like wallets and portfolios can be embossed with the recipient’s initials. Apparel items can feature custom embroidery with names, logos or monograms. Drinkware like mugs and flasks can have photos printed on them. The options are endless when it comes to adding custom details to make corporate gifts special. Work with your gift supplier to explore different personalization techniques for your branded items.
Customization takes branded corporate gifts to the next level. The time and effort to personalize gifts shows recipients that they are valued and appreciated. It transforms an ordinary item into a memorable, unique gift they will enjoy and treasure.
Branded Gifts and Tax Implications
One important consideration with corporate gifting is the tax implications. There are some key tax rules and deductions to keep in mind:
Tax Deductions
Businesses can deduct up to $25 per gift given to each recipient during the tax year. This includes gifts given to employees, clients, business partners, etc. The gifts must be business-related and not personal in nature. Anything above $25 is not tax deductible.
Gifts considered “de minimis” such as logoed pens or mugs often fall under the $25 limit. More expensive branded gifts like electronics may exceed the $25 threshold and would not be fully deductible.
Employee Gift Rules
Gifts given to employees are subject to different tax rules. Cash gifts or cash equivalents like gift cards are always taxable income to the employee.
Non-cash gifts like branded merchandise are tax-free to the employee if under $25. If the gift exceeds $25, the employer must report the excess amount as wages on the employee’s W-2 tax form. The employee must pay income tax on the excess amount.
Employers need to carefully track gifts to employees and issue proper tax documentation. Gift amounts per employee should be kept under $25 whenever possible to avoid tax headaches.
State and Local Taxes
Federal tax laws provide the main guidance but some states and localities may have different tax rules regarding business gifts. It’s important to consult both federal and state/local laws when claiming gift deductions.
Following the tax rules and limitations allows businesses to optimize their branded gift strategy and obtain maximum tax deductions. Proper documentation should be retained for all gifted items.
The Future of Corporate Gifting
Corporate gifting is evolving along with business culture and priorities. Here are some key trends shaping the future of branded gifts for companies:
Sustainability
Sustainability is a growing concern across industries, and corporate gifting is no exception. Companies are increasingly considering the environmental impact of the branded items they distribute. Eco-friendly gifts made of recycled materials, sustainably-sourced goods, and products that support social causes align with this trend. Biodegradable, reusable, and minimalist gifts are other options. Expect sustainable corporate gifts to become standard as companies aim to reduce their carbon footprint.
Digital Gifts
Digital gifts likely will gain traction as virtual interactions rise. Some companies are experimenting with e-gifts like online gift cards, subscription services, digital media, and experiences. These provide flexibility for remote employees and clients. Digital gifts have lower costs and environmental impact. However, they lose the tangible element of traditional corporate gifts. Finding the right balance will be key.
Personalization
Personalization already occurs with some corporate gifts, but advances in technology will make it even more scalable and affordable. Companies can customize gifts with the recipient’s name, interests, company, and occasion. Artificial intelligence may even help predict gift preferences. Personalized gifts show the recipient they are valued as an individual.
Experiential Gifts
In place of physical items, experiences may become more popular corporate gifts. These could include tickets to events, meals at nice restaurants, museum memberships, travel vouchers, and more. Experiential gifts leave lasting memories rather than clutter. They also align with younger generations’ preferences.
Corporate gifting will continue evolving to reflect companies’ brand values and employees’ lifestyles. But the fundamental role of gifts to build relationships, show appreciation, and make people feel special will endure. Companies who adapt their gifting programs to emerging trends will stay at the forefront.