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LOOKING TO START A NEW GIFT BUSINESS?
CONSIDER PERSONALIZED PRODUCTS
By: Nancy Wurtzel, All About Baby
Looking to launch a new consumer products
business that makes and markets gifts? Why not consider a niche that has
grown dramatically over the past few decades and still shows signs of
continued expansion? The market has your name written all over it -- the
personalized products industry.
In the U.S. today, there are thousands of businesses selling
personalized gift products and
these numbers are continuing to increase.
Why is the personalized gift market considered such a rapid growth
industry? Several forces are at work currently driving the
personalization market.
1. The Economy: The U.S. is in a 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 the 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 the same quality goods --
but at a fraction of the 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 the inexpensive and predictable to the 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 the expensive outfit
that baby outgrew in a few weeks. A personalized present is also a great
choice for the "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 the 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 the price -- which was, at that
time, a very small percentage of the population.
Not much changed until the late 1950s when mass production brought the
"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.
However, most of these personalized items were considered cheap imported
gifts aimed at kids and teenagers. And, if you had an unusual name, you
were out of luck because all these novelty products were pre-made at the
factory with the most common names of the day.
While there are still many of these low-ticket items available today, the
personalized products industry has grown and evolved over the past forty
odd years. Probably the biggest change that has moved the industry
forward has been advances in technology.
Lower costs for machinery make it possible to have
personalization equipment in decentralized locations rather than one
central processing plant. Additionally, personalized gifts that once
would take weeks to obtain can now be created in a matter of days or even
minutes. Consequently, gifts that once had a long ordering lead time, are
now almost impulse buys for today's busy consumer.
Computer-driven technology also has made literally thousands of
personalized gift choices in a variety of price ranges available to the
consumer.
BUYING AND SELLING
What type of companies sell personalized
gifts? Major catalogs, countless ecommerce sites, upscale department
stores, specialty boutiques, general dry-goods retail storefronts, drug
store chains and thousands of small entrepreneurs.
What types of personalized items are consumers buying? Almost anything
can be personalized, so the choices are many.
Just pick up a catalog and you will find a wide-range of products, like robes for adults and kids, fine
crystal, quilts, and keepsake gifts for newborn babies. Visit a local retail store and you will find stationery,
jewelry, wall art, T-shirts, mugs and dinnerware, glasses, picture frames
and much more.
Why are these gifts so attractive for so many sellers? Any retailer will
agree that a personalized gift means a little more effort up-front, but in
the long run fewer returns. Plus, these products often carry a higher
price point -- and therefore profits -- making these gifts very
attractive.
AMERICANS LOVE PERSONALIZED GIFTS
While you may find some personalized gift
items in other countries, you will not see the same wide range of products
that are found in the U.S. Why has the personalized gift market thrived
here at home?
It's really pretty simple according to those who study consumers.
Americans -- young and old alike -- love to see their names on a product
because it makes them feel special and unique.
And, American consumers are always looking for products with a slightly
different spin, and this, too, is accomplished by purchasing a
personalized product.
Faith Popcorn, who studies and reports on nationwide trends, has coined
the word "egonomics" to describe the personalized product phenomenon.
Other trend forecasters agree that the personalized gift industry is here
to stay and will continue steady growth as more products are brought to
market in response to consumer demand.
Nancy Wurtzel is the founder and owner of All About Baby, an ecommerce
site located at http://www.allbaby.com. All About Baby specializes in
personalized and memorable gifts for children as well as interesting and
helpful child-related site content. Ms. Wurtzel has over 20 years of
marketing and communications experience. She consults with small
businesses seeking to enter the marketplace or grow their existing
ecommerce business.
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