How Omnichannel Strategies Are Transforming the Personalized Gift Shopping Journey
The distribution channel landscape of the U.S. personalized gifts market is characterized by a strong blend of digital adoption, consumer convenience, and experiential retail engagement. Recent transformations have shifted personalization from a niche offering to a mainstream retail opportunity. Online stores are projected to dominate the U.S. personalized gifts market in 2024, accounting for approximately 48 to 52 percent of total sales. This trend is driven by a rising preference for digital gifting, widespread availability of customization tools, and the growth of e-commerce platforms such as Amazon, Etsy, Shutterfly, Redbubble, and PersonalizationMall.com. Consumers increasingly value the flexibility to design, preview, and order gifts online with delivery to their doorstep, establishing online platforms as the preferred purchasing method. The incorporation of augmented reality (AR) and 3D visualization tools on gifting websites enhances the customer experience by allowing buyers to visualize products before making a purchase decision. The pandemic period notably accelerated online adoption as social distancing measures limited physical store access, resulting in a lasting behavioral shift toward e-commerce.
Specialty gift shops represent a significant segment of the U.S. personalized gifts market, holding around 25 to 28 percent of market share. These stores are critical due to their capacity to forge a tactile and emotional connection with products, an experience that online stores struggle to replicate fully. Specialty retailers offer hands-on personalization services, immediate assistance, and unique locally crafted gift options, appealing to consumers who seek exclusivity and authenticity. Independent boutiques and artisan-driven shops, which emphasize handmade or small-batch gifts, are increasingly popular among millennials and Gen Z consumers who prioritize meaningful and eco-conscious purchasing. Many specialty retailers have also embraced an omnichannel strategy, integrating their online presence with in-store services to maintain competitiveness against larger e-commerce players.
Supermarkets and hypermarkets account for nearly 10 to 12 percent of the market share in personalized gifts. While traditionally not dominant in the personalization category, these stores have begun to offer customizable products such as photo mugs, greeting cards, and name-engraved accessories through in-store kiosks and digital ordering systems. Major retail players like Walmart and Target have integrated digital kiosks and online pickup services, providing basic personalization to entice impulse buyers. This strategy benefits consumers seeking convenience and immediate availability, particularly during peak festive seasons such as Christmas, Valentine’s Day, and Mother’s Day. The personalization options available in these outlets are typically limited to standardized templates, yet their substantial foot traffic contributes significantly to overall sales volume.
Department stores account for approximately 7 to 8 percent of the personalized gifts market. Despite their smaller overall contribution, these stores target premium consumers seeking luxury and branded personalization. Retailers like Macy’s and Nordstrom provide high-end customizable merchandise, including monogrammed accessories, personalized jewelry, and engraved perfumes. To diversify offerings, department stores increasingly leverage partnerships with design brands and online personalization service providers.
However, this segment faces challenges, including declining in-store traffic and heightened competition from online luxury platforms that offer personalized experiences without the need for physical visits. Nonetheless, department stores remain relevant during festive gifting seasons when consumers typically seek reliable and branded options, often accompanied by gift-wrapping services and immediate delivery.
The “others” category, which encompasses pop-up stores, event-based kiosks, corporate gifting vendors, and direct-to-consumer craft sellers, contributes roughly 5 to 6 percent of the market. This segment is becoming increasingly dynamic with the rise of personalized corporate gifting solutions and event-based merchandising. Corporate demand for personalized awards, apparel, and promotional merchandise is on the rise, especially in sectors such as technology, real estate, and finance, where customized gifts serve branding and employee engagement purposes. Pop-up kiosks in malls and events attract buyers looking for quick, customized products, such as photo souvenirs or name-engraved items.
The overall distribution structure within the U.S. personalized gifts market is moving toward a digital-first and omnichannel approach. Online platforms are anticipated to retain their leading position due to their scalability, diverse customization options, and lower operational costs. Specialty gift shops will continue to thrive by emphasizing experiential and community-driven personalization. Supermarkets, department stores, and pop-up retailers are gradually integrating personalization technologies to capture spontaneous buyers and corporate clients. As artificial intelligence and machine learning tools advance, they will further influence the evolution of distribution strategies in this market.
