As the award industry evolves and new generations enter the space, the personalized-product market is not only evolving but thriving.
According to research, millennials and Gen Zers are placing greater value on customized goods, such as high-end personalized drinkware, serveware, and more.
This demand creates a productive market for suppliers and retailers looking to diversify their product lines. Top-shelf, personalized products can be lucrative, particularly when companies create the perception of value at a price tag that won’t break the bank.
Capturing Luxury Without the Expense
How can suppliers and retailers innovate cost-effectively in the high-end-product space? Diversity in products made from a variety of materials that have a practical cost point can create a high visual impact.
Layering and mixing media can also create unique designs.
“We often associate luxury with natural materials and clean lines,” says Jackie Faeth, Rowmark’s marketing coordinator. “Think diamonds, granite, leather, and polished metals. These materials are beautiful, one of a kind, and rare, and fetch a high price tag.”
However, these aren’t practical materials when sourcing supplies for a cost-conscious business, Faeth points out. This is where suppliers who offer a broad range of materials come into play.
Perception of quality is still king when it comes to drawing in customers. And that’s especially true in the personalization market.
For J.Charles vice president of sales Kale Wallner, the physical feel of holding a product in hand can create a sense of luxury, as can the use of traditional etching technology for clean customization.
Visual elements, Wallner suggests, can also reinforce that sense of luxury.
“The quality, look, and feel of the product help with the perceived value, coupled with creative design, helps further elevate a product,” he adds.
Finding the Sweet Spot
Competing with e-commerce giants is an ongoing challenge for retailers and suppliers alike. And it’s often hard to gauge the continued impact on the economy.
“It doesn’t matter what company or what industry, the Amazons out there are eating our lunch because people can get things so inexpensively, with free shipping, and so on,” says Wallner. “I embrace it, because we can’t just put our heads in the sand and ignore it, because it’s not going to go away.”
However, e-commerce giants often lack high-quality materials, customization options, and sometimes even safety standards, as international regulations on materials aren’t as strict as domestic requirements.
That opens the door for luxury items at an affordable price point to excel from U.S. suppliers and retailers.
“For me, it’s about personalization. It’s a big differentiator from the products on e-commerce sites. And, of course, it’s also about quality,” says Wallner. “Customers want to feel that heft of a quality piece, for instance, and it doesn’t need to be made from the most expensive materials, but it goes a long way to the perception of luxury.”
Faeth also notes a massive opportunity for small and midsize retailers to create custom products that match their customers’ visions.
“For the best results, don’t leave options completely up to the client’s imagination,” she points out.
Faeth suggests retailers guide customers to their dream products by providing direction and education. This is typically done by showing and simplifying customization options, for example, providing a presentation of three different award-design options at three different price points.
“Given a choice of three price points, studies show that about two-thirds of end users who make a purchase will choose the middle (‘better’) one,” Faeth suggests. “This also holds true with the sign-making and personalization industry.”
Presenting customers with luxury options also gives retailers the chance to sell them on upgrades, whether through customization or higher-end products.
“Your client’s confidence in your abilities will increase when they see your creativity, knowledge, and experience,” Faeth adds.
Navigating the Unknown
Opulence and affordability can sit at the same table. And often, it means a win-win for suppliers, retailers, and ultimately, customers. But as tariffs and manufacturing costs continue to rise under current economic conditions, strategic decisions have never been more important.
Both Wallner and Faeth suggest being open to new items while keeping a discerning eye on what will actually sell.
“In my opinion, trophy shops need to diversify and continue to expand their lines,” which can include expanding the luxury goods lines successfully, Wallner says. “But they need to find what they are good at and master it. You can’t be everything to everyone.”
Understanding the audience, their spending patterns, and your specialization is key. According to a Retail Dive study on gifting, 65 percent of Gen Zers and millennials rely on social media platforms to find offers and discounts. That number is nearly twice that of older generations, which stands at 35 percent. Older buyers take a more commonsense approach to gifting, as most (79 percent) say that cost is their primary concern when making purchasing decisions.
And while understanding your audience and demographics is often discussed, it is not always fully applied to achieve the best results.
“In general, there’s a tendency to underprice and undersell custom work,” says Faeth. “It’s also important to remind yourself that customers pay for value, not hours, so don’t undervalue the skill and creativity behind what you do.”
It’s also about recognizing trends in materials and manufacturing, including tactile and stone-inspired materials.
“Affordable alternatives, like textured acrylics and faux leather with a soft, leatherlike hand, also continue to trend in apparel, awards, and personalized gifts,” she points out.
Another trend that is becoming more prominent is retailers outsourcing the creation of personalized products to suppliers.
This approach has the potential to create pieces at a lower cost, generally, and in less time, and often allows drop-shipping directly to shops and/or customers. In some cases, it also allows retailers to upgrade the materials they use due to savings across the board.
“I’m seeing more recognition shops that are also changing how they go to market,” says Wallner. “It also helps them diversify their lines. If somebody comes in and says, ‘I want crystal, but I want sandblast,’ and if it was something the retailer doesn’t do in-house, instead of losing that sale, now they can add the business.”
In addition, the use of social media should be part of a solid marketing strategy. Wallner is a proponent of engaging with social media platforms to keep growing networks within the industry. LinkedIn and Facebook are not only large public platforms but also places to find suppliers or potential customers.
The Sky Is the Limit
While the high-end-product space is not usually the primary source of income for suppliers and retailers, there is a significant opportunity to enhance product lines and increase market share.
And as more people become aware of the value of goods with a luxury, customized feel without breaking the bank, there will only be more interest in ever-expanding product lines.
Faeth shares a strong parting thought:
“Price your work to the luxury space and it will find its way to the right buyer.”