How Corporate Gifting is Transforming SME Engagement

Corporate gifting has evolved into a powerful expression of appreciation and culture, and as organizations step into a new year, this language of recognition is undergoing a thoughtful and transformative shift. For small and medium enterprises (SMEs), the evolution of gifting presents an opportunity to build stronger bonds and reinforce trust in ways that are more digital, personal, and sustainable.

Considering that the broader Indian gifting market was valued at over USD 75 billion in 2024, it is plausible that the corporate-gifting segment now runs into several thousands of crores, and there are industry estimates placing it at about ₹14,000 crore in 2025. Behind these numbers is a shift in intent. Gifts are no longer viewed as occasional gestures but as meaningful expressions of how companies value their people.

For SMEs in India, gifting is evolving from a once-a-year ritual into a culture of appreciation that nurtures loyalty and belonging. Each carefully chosen gift now represents recognition and shared purpose, values that matter deeply to a modern, connected workforce.

Digital transformation is redefining the gifting experience

According to a 2025 forecast by Mobility Foresights, India’s digital-gifting market could grow from about USD 48.6 billion in 2025 to nearly USD 129.2 billion by 2031; a sign of how digital platforms are making gifting more scalable, flexible and friction-free

Many growing businesses are now moving away from one-size-fits-all hampers to digital-first experiences that allow recipients to choose what truly resonates with them. Whether it is through e-gift cards, curated experiences, or digital redemption portals, these platforms make gifting more inclusive and meaningful. They also simplify logistics, reduce waste, and offer real-time insights into engagement. This gives SMEs the ability to design appreciation programs that are both efficient and personal.

For SMEs, this digital-first approach means flexibility, reduced logistics, and real-time engagement. It makes gifting inclusive and accessible, bridging distances and bringing people together in meaningful ways.

Gifting as an engagement and culture catalyst

Corporate gifting is becoming a strategic lever for engagement. Forward-looking matured and new businesses are using gifts to boost morale, express gratitude, and strengthen relationships within their teams. When done thoughtfully, gifting builds emotional connections that last far beyond the occasion itself.

Industry data also shows the tangible impact of thoughtful gifting. Corporate gifting has been linked to a 306% rise in customer lifetime value and a 47% boost in client retention, while personalized or unique gifts are more than twice as likely to prompt favorable action. For SMEs, this reinforces that the real value of gifting lies not in the spend, but in the emotion, relevance, and care behind each gesture.

New priorities: Sustainability and hyper-personalization

As organizations rethink appreciation, sustainability has become a defining theme in corporate gifting. More companies now prefer eco-friendly options, focusing on local sourcing, recycled materials, and packaging that reflects both care and responsibility. For SMEs, this shift is not just about reducing environmental impact but also about aligning gifting practices with modern consumer values.

At the same time, personalization has emerged as a key driver of engagement. Businesses are moving toward gifts that reflect individual milestones, interests, or achievements rather than generic choices. With data and digital tools, SMEs can now make each gift feel more relevant and thoughtful. A well-chosen experience or e-voucher can convey recognition in a way that feels personal, authentic, and memorable.

Together sustainability and hyper-personalization together reflect the heart of modern gifting. They signal a move away from standardization toward authenticity and empathy.

The future of corporate gifting: intelligent, purposeful, and human

The next phase of corporate gifting will blend technology with emotion. AI-powered platforms are already helping companies predict preferences, automate milestone celebrations, and align gifting with ethical and environmental values.

For SMEs, this evolution is not about scale but significance. Each digital gesture, whether it is a curated experience, a personalized message, or an instant redemption, represents an opportunity to strengthen culture and reinforce trust. Technology enables seamless giving, but empathy ensures every gesture feels genuine.

Building lasting connections through gifting

Corporate gifting today is about celebrating relationships in a meaningful way. It is a reflection of care and culture. For SMEs, it is not a marketing initiative but a way to express gratitude and celebrate people who contribute to their growth.

As India’s gifting ecosystem expands, the future will be shaped by gifts that carry purpose, thoughtfulness, and real impact.

Corporate gifting today combines technology with empathy, personalization with purpose, and sustainability with appreciation.

In a world that increasingly values connection, every thoughtful gesture, no matter how small, has the power to create belonging. That is what modern gifting stands for: a simple, human way to deepen relationships, and build cultures where everyone feels they belong.

Author: Krishnan Menon, Merchants Director, Pluxee India