Corporate gifting: Gold and silver play second fiddle to tech this Diwali

Companies have moved from the traditional coins, idols and mithai towards futuristic gizmos devices and personalised items. Work out your tax liability if you receive an expensive item or cash

A prominent corporate gift dealer made a revealing statement when he talked about the diminishing number of orders for silver and gold items this season. While silverware and gold coins topped the demand charts between 2012 and 2015, tech products such as Alexa, Google Homes, Amazon Echo, fire stick, bluetooth speakers, power banks, soundboards and audio products have taken over this year.

"Idol gifting also seems to be losing favour, as we have not received inquiries this festive season," says a spchanokesperson from The Style Salad, a Chennai-based gift curator. People are moving away from overt religious expressions, as new-age corporate jet-setters consider this a matter of personal choice and feel their beliefs should not be imposed on others. This probably explains why companies are now increasingly gifting more self-care products such as rose quartz and jade facial rollers, and tech neck face masks, which cost anywhere between Rs 1,000 and Rs 6,000 depending on the finesse. 

"The Xech iSoother is our bestseller," says Pranay Punjabi, Director of Theo Solutions Pvt Ltd and founder Xech. The device is an automated massager for the eyes that the company claims rejuvenates the eyes in ten minutes as it uses a combination of intelligent air pressure and vibration techniques and gentle infra-red heat to eliminate the stress and aches. Xech was founded to introduce futuristic gadgets into the corporate gifting market. Punjabi says all tech lovers have one thing in common – they never settle for ordinary or outdated stuff and always want to lay their hands on the latest gadget available. 

Akiva “Big Box of health” (Top) with tulsi raw honey, A2 cow ghee, dry fruits and nuts. Price: Rs 1,200. Ohria Ayurveda's rose and oudh candles, agarwood extract to reduce stress. Price: Rs 4,599

Audio products clock big sales: The likes of Carvaan for those into old Bollywood songs, high-end multi-functional speakers with micro SD Card, USB Slot, pen drive slot, bluetooth, call-answering facility and FM radio, wireless speaker with a selfie stick and power bank are excellent gifts for high-end customers. Digital photo frames are also seen to have great utility both, at the workplace and at home.

Dry fruit makeover: The traditional dry fruit and mithai have not all vanished, but they now come in a new avatar of the super-food hampers that everyone, from five-star hotels to leading bakery shops across the city, has been retailing this season. "Traditional nuts now come with a contemporary twist. So you have cashew praline, white chocolate raisins, chilli cheese almonds, lemon chilli pistachio, and fig and date bars," says the spokesperson from The Style Salad.

Health is where the heart is: Akiva has curated a hamper with raw tulsi honey, cow ghee, dried cranberries and roasted cashews available in the Rs 350-1,200 price range. Organic teas, which are caffeine-free herbal blends such as jasmine, Moroccan mint, lemongrass, natural green, pure tulsi, lemon and honey are popular as they are affordable (60 envelopes cost Rs 550-650) and are known for their restorative powers.  

Smart home appliances: "People are now moving towards durables instead of consumables," says Ravi Saxena, MD, Wonderchef Home Appliances. “We have integrated Alexa with some of our key products such as Nutri-Pot and Nutri-Blend, that come in the Rs 7,000-10,000 price range. Nutri-pot is one of our bestsellers and has been paired with a customised app that offers a host of recipes crafted by Chef Sanjeev Kapoor.”

Personal care: The trend of gifting premium skin, beauty, hair care products is also gaining momentum. "Once considered a “personal category” gift, gifting Ayurveda and natural beauty products is considered thoughtful nowadays, as it sends the message that you care for the person and believe in the power of authentic, time-tested and effective treatments," says Vivek Sahni, CEO & Co-Founder, Kama Ayurveda. They have various hampers upwards of Rs 2,000, such as divine beauty box and the radiance box. 

Another company, Ohria, has facial care, hair care, bath and body herbal hampers such as the Raatrani gift box that comes  with the aroma of jasmine flowers, and is priced at Rs 3,299.

Metal products: Copper bottles are a rage in the sub-Rs 1,000 category. Brass candles, votives and pens make premium gifts, while agate coasters, bottle openers, tea light holders are also very popular this Diwali. Branded stainless steel is considered functional and contemporary. Silver is down but can never be out. According to Chanda Narang, CEO, Frazer and Haws, “Corporates define a strict multi-tiered pricing. The expensive gifts are in pure or sterling silver, while silver-plated merchandise is more affordable. The gifts at the bottom of the price pyramid are copper- or brass-designed products. The silver pieces have remained traditional, while the other metals are more contemporary in design.” 

Chandon’s latest wine selection called the Party Starter (Top). Price: Rs 1,650; Wonderchef's Alexa-integrated Nutri-Pot cooker offers users Chef Sanjeev Kapoor's recipes. Price: Rs 7,000

How important is packaging? 

Gift dealers say that the most important part is packaging as that gives the receiver the first impression of the gift. Companies usually customise the boxes by affixing their logos and incorporating theme-based  packaging that conforms to their branding guidelines. 

"Packaging is the first thing a consumer sees when he buys any product. It is one of the key elements of any brand on the shelf," says Sophia Sinha, Senior Marketing Manager, Moet Hennessy India. “Of course, after that, it all depends upon the quality of the product and the experiences a brand can bring to its consumers.” Her company recently came up with a unique packaging in which its wine bottle was swathed in the combination of turquoise and metallic gold, and had design motifs inspired by India’s palaces. This Chandon’s latest wine selection called the Party Starter, is available for Rs 1,650.

What is the genesis of corporate gifting every Diwali? "Companies strive to please their clients, associates and high-rank executives, in order to build and maintain relationships that are critical to their businesses," says the HR manager of a telecom major. "Diwali is a time for thanksgiving of sorts and there is an unwritten rule that everyone -- from employees, customers, clients, and staff, right from the highest position to the lowest in a company -- will receive gifts and goodies. It is at this time that people try to nurture relationships both within and outside the organisation. And in order to cater to every pocket, prices can be as low as Rs 500 and can go up to a staggering Rs 50,000 per gift.

The tax angle

Can Diwali gifts be taxed? "If the aggregate value of gifts received from others (apart from relatives) is below Rs 50,000, then there is no tax liability," says Archit Gupta, Founder, and CEO, Cleartax. Any gift voucher or token worth more than Rs 5,000 received from the employer on any occasion like Diwali or Christmas in a financial year, is considered as a part of your salary and taxed according to your tax slab.  There is no exemption on cash gifts received from your employer. Even if you receive Rs 1,000 from him, it will be taxed as part of your salary. 

What's on offer in the gifting space this Diwali season
Price bracket (Rs)	Gift options
500-1,000	Earphones, Bluetooth speakers, Powerbanks under 1000, Bags, Drinkware, Tiffin boxes, Sheaffer Pens, Crystal
1,000-2,500	Lamps, Wireless chargers, Premium Powerbanks , Cross Pens, Wine Bottles, Barware
2,500-5,000	Alexa, Google Home, Amazon Firestick, Hard Luggage, Travel Bags, Home Appliances such as OTG, Oven, Toaster, Luxury ayurveda and natural product hampers
5,000-10,000	Soundboards, Digital Photoframes 10"x15" with wifi
10,000-20,000	Xiami, Appo, 64 Megapixel , MI, Vivo, Samsung M30
20,000-50,000	Bose Speaker, Sony headphones, Branded Pens like Mont Blanc branded pens, Silver