The demand for giftware is driven by special occasions, traveling and tourism, and the spending practices of consumers. As giftware companies stock many different types of product in their stores, they are in constant competition with home shopping networks, toy stores, warehouse clubs, mass merchandisers, departments, and internet retailers. At times, the internet offers free products, such as online greeting cards, that entice consumers due to the lack cost and the convenience. It provides an alternative form of expression which appeals to consumers.
With the steep competition, giftware retailers are actively attempting to promote their stores and products in a way that will attract business. Large companies, due to pre-established positions in the market, have advantages in the purchasing, marketing, and distribution of giftware. Smaller businesses are retailing specialty giftware that cannot be found in every location. These small companies also provide excellent and personalized customer service, and attempt to give the consumers a unique experience within their stores. Independent giftware retailers tailor they merchandising strategies for maximum appeal and promotion of product. They prioritize generating consumer traffic within their locations.