Looking to launch a new consumer products business that makes and markets gifts? Why not consider a niche that has grown dramatically over
past few decades and still shows signs of continued expansion? The market has your name written all over it -- personalized products industry.In U.S. today, there are more than 100,000 businesses selling personalized gift products with annual sales of at least $27 billion, and these numbers are continuing to increase.
Why is personalized gift market considered such a rapid growth industry? Several forces are at work currently driving personalization market.
1. The Economy: The U.S. is just coming out of an economy slump and recession. During tough economic times, consumers often look for added value when they make discretionary purchases. For example, when shopping for a gift, price conscious buyers look for a selection that will make an impression and be lasting. Consumers perceive that they are getting both when they purchase a personalized product. In general, buyers are actively seeking personalized gifts, and this activity and interest is moving industry forward.
2. New Technology: Advances in technology have made a wider variety of products available and much more affordable. For example, machines that personalize towels and clothing once cost thousands of dollars and weigh hundreds of pounds. Now, a much smaller, cleaner, quieter, computer-driven piece of equipment can produce same quality goods -- but at a fraction of price. And, if manufacturing upfront costs are less, products become more affordable.
3. Product Selection: Since technology has made production easier and cheaper, there has been an explosion of personalized goods and gifts. Gifts range from inexpensive and predictable to upscale and highly innovative. Most gift stores offer some personalized gift selections and there are now many stores, websites and even mail-order catalogs with literally thousands of consumer choices.
4. Stand-Out Gifts: Personalized gifts are memorable. For instance, parents will always remember who gave their newborn a charming personalized picture frame, but can't recall who sent expensive outfit that baby outgrew in a few weeks. A personalized present is also a great choice for “person who has everything.”
PERSONALIZED HISTORY The personalized gift market is primarily a U.S. phenomenon. Its roots can be traced back to our early American history when silversmiths practiced their skills by engraving family names or initials on one-of-a-kind silver trays, bowls and jewelry.
As country expanded westward, saddle and gun makers would occasionally personalize their wares, while wood artisans used their talents to create uniquely decorated trunks with family names or crests.
These early personalized items were always made to order and available only to those who could afford to pay price -- which was, at that time, a very small percentage of population.
Not much changed until late 1950s when mass production brought “pre-made” personalized gifts to middle America.
Suddenly, every local corner drug store offered displays of inexpensive pencils, key chains and jewelry featuring names like Linda, Mike, Tom, Cindy, Mary and Dave.
