Did you really think corporate perks were out?
Just in time for the executive who wants to remember colleagues, but is unsure about the rules, Saks Fifth Avenue has issued its new holiday corporate gift catalog, the first one the Fifth Avenue retailer has ever published, featuring desktop tchotchkes, from sterling silver flashlights for US$125 to Baccarat bulls for US$890. Engraving costs extra.
Analysts report that the department stores, faced with flagging demand for clothing, are generally turning more to gifts, and Saks is no exception. Now, besides overhauling its stores' gift departments, Saks is taking on Tiffany's, which previously had the market for corporate gifts pretty much to itself -- with, of course, an occasional gift of, say, his and hers jets from Neiman Marcus. But Tiffany's has always been the one to beat. It is the store with its own special corporate gift catalog.
To Eric Beder, the director of research with Ladenburg Thalmann, the Saks catalog is part of a changing emphasis at luxury department stores toward gifts: one-size-fits-all and the more "unique," the better. And a big part of the gift market is business customers: CEOs giving to special underlings, events coordinators giving to suppliers, manufacturers giving to top salesmen and finally to say Happy New Year.
"There's a new focus on gifting, on companies coming out with new distinctive boxes, to further leverage the brand names," Beder said. "The market for corporate gifts is huge, with incredibly high profit margins."
Beder said that unlike regular store merchandise, 40 percent of which eventually get marked down, corporate gifts are sold full price or not at all; there are no discounts. So in January, executives will not be getting a chance to buy the New York City toile box in earthenware (Tiffany's) for less than the US$75 asking price. Or Saks' doghouse and bone sterling keychain (for kennel owners and other dog-fanciers), for US$60.
At Saks, the new catalog is part of CEO Christina Johnson's strategy. Johnson, who took over in February 2000, said she wanted to make Saks more of a destination for gifts. And now, the store has just released its first corporate catalog.
"We've never done this before, and we'd like to turn this into a US$30 to US$50 million business over the next five years," said Christina Johnson, Sak's chief executive. That sounds like a lot, but it is not when compared with the total US$16 billion a year corporate gift market cited in the trade magazines. But that number includes the world's supply of company-logoed golf shirts, plastic drinking mugs and monogrammed tennis balls.
These sorts of gifts are not exactly hallmarks of Tiffany -- nor of Saks, where the offerings start with a giant solid 18 karat gold money clip (US$450) on the cover of the new pewter-colored booklet.
Saks, by the way, has placed its money on pewter to rival Tiffany's distinctive cornflower blue boxes. "It's not as iconic as Tiffany's -- yet," conceded Johnson, "but we're building."
For the less generous boss, there is also a silverplated computer mouse (US$35) or a red nubuck mouse pad (US$25), not to mention the Christofle silver-plated Pebble of Peace (US$85), with the word in 32 languages, inspired by Clara Halter, who designed "La Mur pour la Paix" in Paris (US$85).
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