- Bill Gates Globalization is the new mantra for economic success. India too has adopted this mantra to enable a strong economic growth. The world economy in general is hit by recession. Fortunately the economies of India and china have not been hit as hard as the rest of the world. Even in these dire times the Indian economy is managing to sustain growth and development. Due to such factors the Indian economy has come to be known as a “cushioned economy.” The rest of the world is largely dependent on the Indian and Chinese markets for business. India is in a market boom where even the common man has a strong purchasing power. The Gifting Industry as well has seen immense growth and development over the past few years. Today, there are several companies placing huge orders for gifts belonging to various price segments. But the biggest change which has been witnessed is not the growth in the quantity of gifts that is required rather it is the fact that most of these companies now purchase International Branded products for gifting purposes.

The question is why International products? The answer is quite simple. l The Corporate gifting sector is tired of the run of the mill Chinese products which have flooded the market. l International Branded products are much appreciated over any other cheap Chinese products, as their perceived value is much higher. l Most of these International Branded Products are High Fashion Luxury Brands and Fashion Accessories. Hence they are recognized world over for their elegance, design superior quality and after sales services. l The corporate gifting sector is looking for new products that have an appeal to the user and value for money. l These International products offer not only novelty but also style, class and are a Status symbol. There are several advantages when it comes to gifting International Products. But certain aspects need to be kept in mind. The performance of these branded products, their current market size and their potential in their future. Also the limitation of these brands and the support that is provided by the overseas brands to their respective Indian representatives.

“The Brands market is big and is growing. If you have the flair and the inclination go for it. The business is challenging but it is exciting, as the future rests in Branded products.!” - Mr.Vipul R. Vasa, Director, Viva Global, Mumbai Performance in Indian Markets

There have been several International Brands in the Indian gifting sector such as Cross, Parker, Mont Blanc, Sheaffer, Pierre Cardin etc. but all of these are Stationery or Writing Instruments Brands. But the new brands that are coming up now in the Indian market are Cerruti 1881, Ungaro, Charles Jourdan, Balenciaga, Iceberg, Belfe, Gattinoni, Renato Balestra, Akakuro, and Lancetti. These are Hi-Fashion Luxury Brands which have a wide range & Designer Products to offer to their customers. One major drawback of these International Products is that they are less well known in the Indian market compared to other international brands which have been established here since some years now. the performance of the International Brands which have been introduced recently are hard to gauge as they are not yet that well known in India as they are abroad. The only way the performance of these products can be gauged in the Indian market is when they are well known here. Incase of International Brands, ‘visibility’ plays a great role. The more visible or well known the brand is the more people appreciate it. In order to ensure good business in the Indian Corporate Gifting Sector or in B2B these International brands need to insure good B2C that is, visibility in the Retail Sector. Brand awareness is essential to generate corporate business. At present the market is mature enough. There are many factors which have made the emergence of International brands possible today. The tastes and preferences of the consumer, the buying power of consumers as well as the retail ambience have contributed towards the fast pace of the emergence of these International Brands. As mentioned before, cheap Chinese products are no longer appreciated in the Indian market. But some of these products are made in South East Asian Countries like China, Taiwan & Korea. The only difference is that since they are “branded” there is quality control and quality assurance. Although global recession has hit India as well, it is not as bad as it seems. The markets are recovering and the Gifting Sector is hoping for a profitable festive season.

Potential and market size There has been no dearth of International Products in the Indian market but the need of the hour is International Fashion Accessories. These products provide a status symbol- not only to the person who is carrying them but also when you are gifting it. These International Branded gift products are associated with respect and quality. There is a certain ‘feel good factor’ associated with these products. Initially the number of International branded products available off the shelf was limited only to pens and stationary items. But with the onset of these new international brands and many others which will soon arrive; the variety has been extended to Watches, Bags, Wallets, Home Accessories, Sunglasses, Umbrellas, etc. The market is predicted to grow leaps and bounds in the next five years. It is huge and is expanding, as more and more people are getting Brand conscious. There is ample of scope for growth and diversification. There is good volume of sale that is possible in the Indian Corporate sector. There are no immediate results in this sector. A lot of hard work, determination and flair are required on part of the company that wishes to go ahead with this business. Very soon, ‘Brands’ will be the catch word for the Indian Corporate Gifting Sector. According to Mr. Vasa “the business itself is challenging. Although the results are over time the potential for growth and success is immense.” Mr. Dewan further commented, “The next avenue in International branded products is in Electronics and computer accessories.”

“This is the way of marketing that has to be looked up. The way the masses are becoming brand conscious the future is in brands. Brands are the future. The Indian gifting Industry also has begun to look up to these brands.” - Mr. Ashissh Dewan - Director Dewan Exports, Mumbai.

Support of overseas brands to their international brands There is no help provided from the international company itself. The whole and sole responsibility in terms of advertising, marketing, promoting etc. is on part of the Company that goes ahead with the business itself. Many Distributors or Local Partners of these brands hope that the principal companies from abroad would take an initiative and invest along with their Indian counterparts to help promote their products in the Indian market.

Advantages and disadvantages of these brands One of the main limitations of these International products is that the cost of promotions and advertising is exorbitant, so to create an awareness of these brands is an expensive affair. Also, there is limited retail available for most of these brands. Therefore, the chunk of business for these products is mainly in the Corporate Gifting Sector. Then again, not many people opt for these brands as the awareness regarding these is limited. The main advantage of these products is that the customer does not feel cheated. There is almost a universal pricing structure and the catalog/collections world over is the same. There is no difference in the price of range of products that are available in India or world over. An added advantage of International branded products is that a new range of designer products is available every six months, thus, eliminating the need to repeat. Also, if the principal company from overseas wishes to open their retail outlets in India it would not affect the Corporate Gifting line as the range of products offered to both is completely different.

What is the market for these products? Luxury Fashion Accessories. The design element, the brand name etc., make the product more expensive. Thus the market for these products is niche. Banks, Financial Institutes, Pharmaceuticals, Construction companies are some of the top end customers. Pharmaceuticals are the ones that give business 365 days a year. The rest do business only during the festive season.

Has recession hit the corporate gifting sector with regards to International products? The global recession shall affect the market only up to 10%. This is mainly because no company can stop gifting. Also major business comes from Banks and Pharmaceuticals and they have not been adversely affected by recession. Other sectors have reduced on their budgets but they haven’t stopped gifting all together. The global recession has affected the gifting sector, but it’s affects on the International brands will not be immense as there is a different class of buyers for these.