The Gift Wrap Edge

The Gift Wrap Edge

BY KATIE MULDOON

First it was the turquoise boxes. If you were going to give a gift that would impress, it had to be in that immediately identifiable turquoise box with the satiny ribbon. So virtually all our gifts, personal and business, were ordered from Tiffany's.

But then we spotted the little spoon on the Williams-Sonoma gift wrap. A gift with a gift! So gifts that were meant to impress (and which ones aren't) had to be wrapped in the distinctive Williams-Sonoma packaging.

Before you knew it, along came RedEnvelope. Now we could have distinctively impressive packaging and the élan of ordering gifts online. Sign us up. RedEnvelope was soon the recipient of many of our business-gift purchases.

According to the Department of Commerce, “Christmas shoppers clicked their way to more than 8.6 billion in purchases in the fourth quarter [of the 2000 holiday season].” Of course, this is just part of the picture. Unity Marketing's figures state that in 1999 “96% of American consumers purchased one item defined as a ‘gift.’”

Catalogs certainly get a bit of this gift-giving business, but not as much as they might. A perusal of catalogs found very few that offered a gift wrap service and even fewer that promoted it.

While some folks undoubtedly will have an intended gift shipped to their home or office, wrap it and present it to the recipient, many of us prefer to take advantage of a gift wrapping and shipment service. After all, according to the U.S. Census Bureau, about one in six Americans relocate or move every year, so friends and family may not be the few blocks away that they once were. Business gifts, of course, must be sent to many locations. A big advantage of catalogs is promoting not only gift wrapping and ship-almost-anywhere delivery services, but also of presenting gifts in a memorable package.

For years, catalogers believed that packaging in general did not relate to them: “We're not a point-of-purchase environment where what it looks like on the shelf matters.”

Packaging for some companies, like cosmetics firms, can be more than half the cost of goods. These businesses realize that it's the image consumers are buying as much as what's in the package. This same purchase incentive can be incorporated in a catalog marketing strategy by devising gift packaging that makes an impressive statement.

The latest packaging genius, RedEnvelope, undoubtedly has other skills, but in all honesty, when RedEnvelope started up you could find most of its products elsewhere with a simple search on the Web. The real strength is in the presentation. A description of the company posted on RedEnvelope.com sums it up nicely: “Whether a gift is a token of gratitude or a grand gesture of love, we consider its giving and receiving a cherished occasion in itself. In Asian tradition, gifts are often presented in a simple red envelope — a timeless symbol of love and appreciation. In the spirit of this tradition, gifts purchased from RedEnvelope are accompanied by a personalized message in a red envelope.”

Gift packaging for many consumers equals presentation that in turn equals image enhancement. “My gift has an added value because I have taken the time and effort to not only find the perfect gift but put it in exquisite packaging.” Want an edge over most of your competitors? Investigate packaging that reflects your company's overall positioning.

One of the brilliant aspects of RedEnvelope is that the packaging is built into who they are and what they stand for.

If you are going to offer gift wrap, plan ahead. The big crunch will, naturally, come in the fourth quarter, which means you may actually have to add staff and hours to handle the extra manual labor. Be sure to have enough supplies; you don't want to run out at a critical time. This is part of your image, not just a service you are offering your customers. So don't be tempted to substitute rather than order enough packaging. Teach all employees, warehouse and management alike, how to properly package gifts, as the demand may require the help of normally uninitiated personnel.

As gift wrap and/or packaging can sit around from season to season, carefully inspect it for any damages that time can cause, such as fading, water damage or dust. Again, this is your company's image we're talking about, as much as the product you sell and the phone reps who represent you. Don't treat it as just another add-on service. To be certain your packaging is given the respect it's due, consider setting up a separate gift packaging center.

Some catalogers add a truly personal element, the handwritten gift card. In today's fast-paced world, I'm not sure how much added value this time-spender offers unless it underscores a positioning that offers a more homey, personal approach. For those who feel gift wrap is a luxury they can't afford, handwritten cards certainly add a thoughtful touch. If they're offered, be certain to promote them.

Charges for gift wrap, in our unscientific review, range from $3.50 to $6. Some companies, generally retailers, offer a range of wrapping options. While this may be a retail tradition, we do not recommend it. After careful consideration and research, choose a package that represents your company and promote it as a brand-reinforcing technique, not just a customer service.