In its latest annual study of gift-buying habits, Unity Marketing found that consumers spent $282 billion in 2005 buying gifts and presents. Entertainment and recreational goods were the most widely purchased gifts, with consumers spending about $52.6 billion for books, DVDs, CDs, toys, games and electronics for gift-giving purposes, according to the Gifting Report 2006.

“Gift purchases represent roughly 10% of the total retail market. Buying a gift is an important reason why people shop-not just during the fourth quarter gift-buying season, but throughout the year,” said Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses-as Well as the Classes (Kaplan).

Gift certificates were the second most popular gift purchase. Discount department stores were the top source for gift certificates. The typical gift-buyer spent $1,935 on gifts in 2005. About 60% of the gift-buyer's budget was spent buying gifts for holidays ($1,190) and about 40% buying gifts for various gift-giving occasions and holidays ($745).

Christmas gift purchases ($870 average spent) and birthday gifts ($431 average spent) were the two biggest gift-giving occurrences in 2005, with nearly all gift-buyers buying Christmas gifts and 82% buying one or more birthday gifts throughout the year. The study found 60% of gift-buyers almost always accompany the gifts they give with a card.

In “giftables,” the category that includes many popular items that are traditionally thought of as gifts, candles and candle accessories were the most frequently purchased gift item, bought by 35% of buyers; followed by flowers, plants and garden accessories, bought by 32%; seasonal decorations and ornaments, 20%; and gifts for pets, bought by 18%. The giftables' buyers spent on average $246 buying these gifts during 2005.

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