PRESS RELEASE

CONTACT: To arrange an interview or other media inquiries, contact Len Stein, Visibility, 914-712-2610.
For more information about speeches, reports, or to schedule speaking engagements, contact Pam Danziger, 717-336-1600

Stevens, PA January 8, 2004— What is the gift industry and what is it's primary business? Is the gift industry about creating, designing, manufacturing and marketing gift items, or is it the business of delivering a wonderfully unique, emotional gift-giving ("gifting") experience to the customer? These are essential questions for retailers and marketers in the gift industry. The answers will determine the industry's future.

To provide a unique perspective on the business of gifting from the consumers' point of view, Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need, will present new research findings at three upcoming George Little Management (GLM) gift shows in Atlanta (January 11 at Georgia World Congress Center, 9:30-10:30 a.m.), Los Angeles (January 18 at California Gift Show, Los Angeles Convention Center, 12:30-1:30 p.m.) and New York City (New York International Gift Fair, Javits Center, February 2. 9-10 a.m.).

In a speech entitled, New Consumer Profile: Gifting is a Verb, Pam will premier findings from the first comprehensive research study of the gifting consumer market. While gift companies and gift stores focus on finding and selling the next big gift item, consumers are choosing different kinds of gifts that they find in different kinds of stores. This new research challenges the industry to understand the 21st century consumer mindset when they are shopping for a gift.

"Gifting represents a rare exponential marketing opportunity where you can touch two target markets directly - the gift buyer and the recipient," explains luxury marketing expert Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need. "For retailers, gifting has all the advantages and the promotional marketing power of sampling and word-of-mouth, but it magnifies and intensifies that power through the unique emotional connection between the giver and the recipient.

"Retailers that aren't tapping the full relationship potential of gift marketing are losing half its power. And retailers that aren't maximizing their gifting sales opportunities throughout the year, not just at Christmas, are losing even more."

Here are key findings from the new gifting research study among gift givers that spent more than $250 between January and October 2003 on gifts. By knowing more about the gifting consumer, retailers and marketers can maximize their sales potential in the gifting business.

Christmas gift shopping accounts for only 40 percent of the gifter's annual budget
In the research study Unity Marketing found that consumers spend only about 40 percent of their annual gifting budget on the Christmas holiday shopping season. That means they have 60 percent of their $2,062 annual gift allowance left to spend on other holidays and gift occasions throughout the year.

Typical gifter's budget is divided between gifting holidays and gifting occasions
About 53 percent of the gifter's $2,062 annual budget is spent to buy gifts for holidays. After Christmas, which accounts for $843 in spending, Mother's Day is the next most widely gifted holiday. The remaining 47 percent of the annual gifting budget is spent for gift occasions. Birthdays top the list of gifting occasions, with the typical gifter buying presents for 7.3 people throughout the year and spending in total $349 on birthday gifts. The second most widely gifted occasion is anniversaries, followed by friendship/thank you/just because gifts.

Entertainment and recreation goods are the favorite choice among gift shoppers
The key attribute that distinguishes a good gift is something that the recipient will like, but also something that they are unlikely to buy for themselves. Because most gifters look for something that is more emotional, rather than practical, they turn first to entertainment and recreation goods, such as books, toys, sporting goods, video/audio, DVD's and entertainment equipment, photographic equipment, computers, games, etc. Next is clothing and fashion accessories, such as handbags and wallets, or jewelry and watches, purchased by two-thirds of gift shoppers each. The gift occasion plays an important role in helping consumers select across product categories to pick out the particular gift to give.

Store selection hinges on price, selection, convenience; Discounters are the most popular stores for gift shopping
While emotional factors largely guide the shopper in their choice of a gift, the most important attribute for selecting a store in which to gift shop is one that offers good prices, rated very important by 65 percent of gifters. They "put their money where their mouth is" in their selection of stores where they buy gifts. Discount department stores are the stores where most gifters choose most often to shop for and buy gifts. This includes warehouse clubs, dollar stores, and discount mass merchants, such as Wal-Mart, Kmart, Target, Sam's Club, Kohl's, Costco, etc. When gift shopping, it's the experience that counts and the experience most gifters want is price, selection and convenience. The research shows that the typical gift store is not connecting with gifters' primary gift shopping needs.

Gifting is an important reason for shopping
The typical gift shopper is someone that goes out on a shopping trip specifically because they need a gift and have to buy one. While they search for the best gift, they are unlikely to settle on what they find in the first store, but to shop around looking for that something extra special. When they shop, they have a maximum budget in mind for the gift and so are likely to be drawn to sales or discounted items where they can maximize the value of the gift while minimizing the price.

In conclusion, gift shopping is an important motivator for consumers to shop and gift shopping takes place THROUGHOUT the year, not just during the last two-or-three months. Retailers and marketers need to develop and implement gifting strategies for the entire year, not just at holiday time. They will be rewarded by not only serving the gifting needs of the shopper, but the potential they have to touch and influence the gift recipient to return to the store for their own gifting needs

By researching the gifting experience, Unity Marketing presents a major new research perspective of the gifting market. No other research study has investigated gifting from the experiential point of view, including gift giving incidence and spending throughout the whole year, including 7 major gifting holidays and 12 gifting occasions (e.g. birthdays, anniversary, wedding, friendship, etc.). The key attributes of what makes a good gift are presented, as are the types of stores where gifters prefer to shop and why. How people choose across the wide range of gifting options is explored, including gift certificates and cash, home furnishings, entertainment, apparel, gifts of experience, etc. Marketers and retailers can put these insights to work to increase gift sales and build repeat gifting business.

About Unity Marketing
Founded in 1992 , Unity Marketing is a market research and consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary 'why people buy' research strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002) uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, art, jewelry, garden, home furnishings, gifts and collectibles, personal care and cosmetics markets, as well as the Luxury Business newsletter. Pam is currently working on her new book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published in early 2004.

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