No grand gifts this year as firms slash budgets

NEW DELHI: This Diwali, don’t expect an expensive gift from your company because corporate festival budgets have been slashed by up to 50% as a result of the economic slowdown. The effect is evident in the lanes of Old Delhi’s Sadar Bazar, which specializes in bulk orders, and the booking lists of gifting companies.

Firms that deal in corporate gifts confirm that festive budgets are down this year. Instead of branded products, the orders this time are mostly for low-priced utility goods. The orders are also smaller than last year. So, instead of phones and laptops, you can expect only their covers, or less expensive items such as irons and electric toasters.

Shyam Prakash, a utensils and home appliances wholesaler in Sadar Bazar, said he has got 30% fewer bulk orders this time. “It does not seem like the Diwali season. We have received hardly any bulk orders”. Parminder Singh, who deals in confectionery, said, “This year, the orders have been few. We are hoping that the demand will improve in the coming days”.

The big gifting companies are equally hit by the slowdown. “The turnover for us might be less than what it was last year. Value-for-money is reflected from the kind of orders being placed by corporate houses. They have cut on consumables and decorative items. The hampers have been reduced to just two gift items,” said Tarana Ahmad, corporate communications manager at Ferns n Petals, a corporate gift company. She said Diwali hampers usually include five-six items, such as dry fruits, chocolates, sweets, a bamboo plant, an idol or some other ‘feel-good gift’. “This year, the companies have been mostly ordering a utility gift along with a box of chocolates or sweets.”

Another gifting company echoed the view. “The market has been very low for Diwali corporate gifts this year. As compared to last year, companies have slashed their budgets of corporate gifts by as much as 50%. There has also been a clear shift to utility items,” said Abhishek Goyal, proprietor of Panchatatva, a company specializing in corporate gifts.

Another company, 5By7, however, reported strong demand for its gifts. It specializes in utility products such as car chargers and travel kits. Its co-founder, Piyush Suri, said, “We are not into consumables but only utility goods. The general sentiment in the market has been slightly low because of the slowdown, but our business has done well”.