In 2008, the gift basket industry will top $4.8 billion in sales. This figure reflects cumulative gift basket sales at specialty shops, department stores and grocers and other retail sellers. Home-based businesses and independent stops which cater to the corporate market also add to the industry’s growth.

Gift baskets became popular in the early 1900s, as an offshoot of a baby bassinet which was filled with powders, lotions, a comb, brush and soaps.

Consumers buy gift baskets most often in the south, west, Midwest and northeast, respectively. This is due to each region’s population and regional migration patterns.

Postcards and yellow page listings are top industry advertising methods. Newspaper and magazine ads are expensive and generate few sales.

Gift baskets are the top product added in retail stores. This gift is added more often than other consumer products, which includes furniture, collectibles, stationery and tabletop items.

The average price for a single gift basket is $45-$50, depending on each region‘s economic status.

The most popular buyers are women, single or married, ages 35-49, with or without children, who lead hectic lifestyles because of home, travel and work schedules.

Networking reigns as the top word-of-mouth method for sales growth.

Gift Basket Q&A

Q. What types of snacks and gifts are great in gift baskets?

A. Open-and-eat snacks are the most popular items because the receiver can immediately enjoy the contents. Popcorn, pretzels, chocolates, candies, nuts and crackers are examples of popular snacks. Teas, cocoas, and coffees are also good choices.

Add gift items that compliment the snacks, such as mini gift books, napkins, coasters, notepads, writing tools and picture frames.

Q. Must a basket always be used as the container?

A. It’s good to use baskets, but gift basket designers who give customers alternative choices are the ones who stand out in the crowd. Wagons, hat boxes, flower pots, chairs, umbrellas and other vessels are terrific non-basket containers.

Q. What’s the biggest mistake that a novice commits with gift baskets?

A. The biggest mistake is combining perfumes or other fragrant items in the same basket with chocolates. Chocolates are porous confections that will absorb fragrances. It’s best not to combine any non-edible, fragrant items with foods. Customers will understand this rule and respond positively to alternatives.

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Shirley Frazier is available to speak to your group on small business topics. Past speaking engagements have included women's groups, students, trade shows, entrepreneurs and small business groups. Contact Karen at karen@sweetsurvival.com to schedule Shirley for an event.

See Shirley Frazier's Web site for more information.

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   Sweet Survival®
   P.O. Box 31, River St. Station
   Paterson, NJ 07544-0031
   (973) 279-2799

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