In today's highly competitive beauty market, brands are constantly seeking innovative ways to engage with their customers and increase sales. One of the most effective ways to achieve this is through gift-with-purchase (GWP) promotions.
GWP is a marketing campaign where brands incentivize consumers to make a purchase by offering a complimentary gift. A well-executed campaign not only incentivizes customers to make a purchase but also adds value to their overall shopping experience – both offline and online.
Research conducted by Harris Interactive indicates that GWP promotions lead to a substantial increase in brand loyalty, with 90% of consumers stating that receiving a free gift with a purchase makes them more likely to buy from the same brand more frequently.1 This salient strategy for beauty brands dates back to 1946 when Estée Lauder launched their first GWP – the sky blue powder compact.2 Following the success of this effective tactic, many beauty brands have since capitalised on the effectiveness of this strategy to boost their products’ sales.
Benefits of GWP products
The main advantage of GWP programs is their ability to increase brand awareness and recognition. Shoppers may not be interested in a storewide sale or a limited-time discount, but they tend to find it difficult to resist the chance to receive something for free.
GWP programs can help increase Average Order Value (AOV) and boost customer loyalty. Offering a free gift with a purchase encourages customers to make repeat purchases and become loyal customers, which ultimately increases the Customer Lifetime Value (CLV) and customer acquisition for the brand.
Another reason why GWP promotions are effective is that they tap into the psychology of shopping. Consumers tend to make choices based on emotions rather than rational analysis alone. A reward system is one of the best ways to trigger positive emotional responses in a shopping scenario. This makes GWP tactics effective because of the excitement of a high-value prize coupled with the instant gratification of obtaining something of lower, yet still substantial in value. Furthermore, by offering free gifts, customers are less likely to return items, as they perceive the loss of giving back a "free" item as too high.3
However, the pervasiveness of modern-day GWP promotions has led to strong competition. Hence, this leads to a vital question for brand owners: how can beauty brands stand out with their GWP promotions?
Beauty brands can create customised GWP products that not only incentivize customers to purchase but also add value to their overall shopping experience – customisation is paramount as the GWP items have to complement the product with an added branding value.
Meiyume is a global organization that specializes in creating innovative and effective beauty solutions for beauty brands and retailers – with GWP solutions being one of their pillars of capabilities. Their GWP capabilities include fashion accessories, secondary packaging, beauty accessories, and wines and spirits accessories, among others.
Meiyume's end-to-end solutions begin with ideation and product development. Their team of experts is committed to collaborating with beauty brands to create a GWP program that aligns with their brand identity and marketing goals, and is in accordance with the market’s latest trends.
Once the GWP items are produced, Meiyume also offers customised secondary packaging solutions to enhance the customer's unboxing experience - reinforcing brand identity and increasing brand recognition.
By managing the sourcing, warehousing and production of the GWP items, their state-of-the-art global facilities and experienced team ensure that orders are processed quickly and accurately, and the GWP items are delivered to beauty brands in a timely manner.
GWP case studies
1) Belvedere Mini Cocktail Shaker
Meiyume collaborated with Belvedere Vodka to launch their playful, and innovative mini cocktail shaker, offered as a value-added GWP item when purchasing a Belvedere bottle. The shaker doubles as a drinking glass once the cocktail is mixed, providing a unique and unexpected experience for consumers.
Belvedere's goal with this project was to propose a new and sustainable way of drinking and interacting with their product, offering customers an inviting and interactive experience. Meiyume ensured that the product was made from FSC cardboard, free of plastic, and was food compliant.
The eye-catching packaging and functionality of the shaker also make it a perfect gift for any cocktail enthusiast, a testament to the brand’s commitment to innovation in the beverage industry.
2) Coach’s Teddy Bear
Coach’s branded Coach Teddy Bear is an adorable GWP item that is sustainably designed and specifically produced to be suitable for children from birth. This teddy bear is 100% polyester and comes with a t-shirt. The packaging was designed to be in line with Coach's commitment to sustainability and reducing its environmental impact, using only recycled polybag packaging.
Meiyume collaborated closely with Coach to develop and manufacture the teddy bear according to their specific requirements and design, with stable quality testing to ensure compliance and excellence. The addition of the t-shirt adds a touch of personalization to the product, making it an ideal gift for any child or Coach enthusiast.
This collaboration resulted in a high-quality, sustainable, and personalized product that is sure to delight children and Coach fans alike.
3) Kiehl’s Guasha Roller Set
Meiyume’s latest project with Kiehl's – the Guasha and Face Roller set – is uniquely designed with natural materials, providing users with an eco-friendly option for their skincare routine. The roller handle is made from FSC wood, a sustainable material that is derived from responsibly managed forests. Meanwhile, the guasha and face roller are made from natural materials, providing users with a luxurious and eco-friendly skincare experience. To ensure that the product is packaged sustainably, Meiyume chose to use a kraft paper box.
The Guasha and Face Roller set is an excellent addition to Kiehl's product line, offering a unique and sustainable skincare solution for their customers.
4) Shu Uemura Collaboration with Sailor Moon 2022 Xmas Collection
Meiyume’s collaboration with Shu Uemura for the Sailor Moon 2022 Xmas GWP Collection includes a mini pouch, pouch, tote bag, toiletry pouch, key ring, mirror, and stickers. This Sailor Moon collection is designed to bring out the inner makeup superheroine in everyone. The bags are made from sustainable materials, with 190T RPET used for the inner lining and RPE polybag for packaging.
Meiyume developed the cat-shaped pouches and other accessories related to the Sailor Moon characters according to the Shu Umera’s requirements. Shoppers can experience the magic with the Sailor Moon 2022 Xmas GWP Collection, made possible with Meiyume's dedication to sustainable materials and innovative designs.
5) Sisley Hair Rituel Hair Brush
Sisley's Hair Rituel Hair Brush is a GWP that offers a special blend of materials for a luxurious hair care experience. The brush features a 100% Schima wood handle, a black rubber cushion, and a combination of 70% synthetic nylon hair and 30% boar hair bristles with epoxy resin tips in blue. To protect the brush, each piece comes with a PET cover on the top of the bristles, as well as an individual OPP self-adhesive polybag and bubble bag for safe and hygienic storage.
Meiyume worked closely with Sisley to create a brush that met their standards for high-quality hair care. The handle's natural wood material is water and heat-resistant, making it durable and long-lasting. Also known as the Brosse Démêlante Revitalisante, it is the perfect addition to any hair care routine.
6) Lancôme Valentine's Day Casino Collection
Lancôme released a Valentine's Day Casino collection consisting of a gift box, playing card, and poker chips set. Meiyume's in-house design team took great care in creating these items, carefully packaging the products sustainably in individual PE polybags to ensure their safety and to avoid any damage during transit. The use of red in the design makes it perfect for a campaign aimed at the Asian market as red is often associated with luck, happiness, and prosperity in Asian cultures.
The poker chips and cards not only serve as a reminder of the brand, but they also offer a fun and engaging way to spend time with loved ones. By including these bespoke items in the striking gift box, Lancôme has demonstrated their commitment to providing customers with high-quality, luxurious and memorable gifts – creating a truly exceptional collection that stands out in the market.
GWP items and campaigns
Meiyume’s extensive capabilities in GWP items also includes sunglasses, customisable boxes, makeup boxes, bags, phone covers, earrings, hats, brushes, key chains, diffusers, and many more.
Overall, GWP promotions can help beauty brands significantly increase sales and brand loyalty. By creating innovative and effective GWP products, beauty brands can enhance the customer's shopping experience, increase sales, and strengthen their brand identity.
Meiyume is a global beauty solutions provider for beauty brands and retailers, big or small, aiming to empower the beauty industry for a sustainable future. The team of beauty specialists designs bespoke solutions covering GWP, packaging design, engineering, formulation, manufacturing, OEM, ODM, retail solutions, and data insights.
Contact Meiyume at marketing@meiyume.com to collaborate and achieve your brand’s vision.
References
1. Study Finds Free Gift with Purchase Drives Increase in Customer Retention, Incremental Sales for Online Retailers Business Wire (2012, November).
2. The history of the beauty industry’s most salient sales strategy Estée Lauder.
3. Does free gift-with-purchase actually work? Shiphero.
