Gift Basket Business Statistics - Overview of the Industry in the US

Gift Baskets represent an excellent opportunity for entrepreneurs wanting to start a profitable home-based business in an interesting and creative field. Firstly we take a look at some gift basket business statistics and then we offer an overview of this industry in the US.

Statistics

1) The industry has had an incredible amount of growth over the last decade and is currently worth approximately 3.4 billion dollars a year in the US.

2) Gift baskets form a part of the wider 'gift industry' which is valued at over 200 billion dollars a year.  They are the fourth most popular gift item in the industry (the most popular category is vouchers).

3) It is interesting to note that the business has long been dominated by woman and even though men are slowly getting more involved, women make up the majority of business owners in this industry. Women are also more likely than men to be customers.

4) Corporate clients make up 40% of the market with the balance of 60% coming from the consumer market.

5) The busiest time of year for the industry are holidays, with the top three being Christmas, Valentines day and Mother's day.

Overview of the Industry in the US

People these days have so much stuff in their lives and don't really want for anything. For this reason it can be nearly impossible to think of something suitable to give to certain people in certain situations. A gift basket solves that problem and can be given to people for a variety of reasons and events, from celebratory events such as birthdays and weddings through to romantic occassions and even funerals. The corporate world has also jumped on the bandwagon and baskets have become a common way for a company to show thanks or appreciation to employees and clients.

Gift baskets are becoming more and more popular, with many people seeing them as an alternative to flowers (they last more than a few days if not eaten straight away). Various companies are putting almost anything into their creations these days and packing gifts in a basket is really just another form of gift wrapping. Gift baskets typically include a range of products that compliment each other and follow a certain theme.

While businesses operating out of retail space will get walk-in orders, home-based gift basket businesses will likely be reliant on the Internet for orders. Having a website and promoting it effectively is the key to success here. Payments can be handled online by PayPal but a successful operation should be set up to take credit card payments directly. While most business models involve heavy Internet marketing, some, particularly those catering to corporate clients are more active at going out and finding clients directly.

The gift basket industry has low barriers to entry and a business can be started from home for less than a thousand dollars. No special skills or training are required but people who are creative and have a good eye for color and presentation will naturally do well.

Depending on whether you structure your business as a limited liability company or as a sole proprietor you may be required to apply for a business license depending on the state that you are setting up in. If you intend to run your business from out of your home then you will also have to check the zoning regulations in your city to see if you are permitted to do so.

Those who are able to start a gift basket business and achieve a full time income from it are the ones who are able to balance the creative or practical side of the business with the business administration and marketing side. This business is reasonably competitive and having a good product is only part of the formula. To succeed you really need to focus heavily on sales and marketing and on become highly effective at finding customers, catering to their needs and delivering a product of the highest standard with the highest level of service.

The gift basket business looks set to expand well into the future and offers great opportunities to those wanting to start up a small business easily with minimal complications.

More US gift basket business statistics can be found in a variety of gift industry publications but it is important that you don't rely on national data too much but instead try to collect local information through solid market research.