Why Free Gifts Are Outperforming Discounts in 2025: A New Era of Consumer Motivation

As the 2025 Black Friday and holiday shopping season comes to an end, a clear shift in consumer behavior has emerged. Shoppers are no longer swayed by yet another “～x% off” or “Buy One Get One 50% Off” offer. Instead, they are actively choosing brands that provide meaningful, useful, and high-value free gifts with their purchases.

This trend marks a broader transformation in how consumers perceive value, build trust, and form long-term relationships with brands. Below, we explore why free gifts (GWP) are winning in 2025, the data behind the shift, real examples from top retailers, and what this means for brands moving forward.

The Psychology Behind the Shift: Why Gifts Matter More Than Discounts

Unlike discounts, which are transactional and fleeting, a free gift feels tangible, personal, and memorable.

Recent industry studies highlight this shift clearly:

45% of consumers say they want more free gifts with purchase

They consider it as important as product selection, if not more.

Promotional gifts remain one of the highest-ROI marketing touchpoints

They increase brand recall, everyday visibility, and repeat engagement.

In a value-conscious economy, consumers want “more for their money,” not just “less cost”

A free, useful item feels like added value, whereas a discount is simply a lower price.

Gifts spark positive emotion

A gift activates reciprocity, a psychological principle where consumers feel more connected to brands that “give” before asking.

A discount reduces price. A gift increases perceived value.

The Market Confirms It: Free Gifts Are Everywhere in 2025

Across beauty, fragrance, fashion, and major retail platforms, brands are doubling down on GWP promotions. And importantly, these gifts are no longer tiny samples, they are high-utility, high-perceived-value items.

Beauty & Fragrance GWP Examples (2025)

Ulta Beauty (US)

• Free branded bags, pouches, and travel kits with qualifying fragrance and beauty purchases.
• Multiple GWP offers running through Black Friday and Holiday.

Sephora (US)

• App-exclusive free holiday gift bags with minimum spend.
• Seasonal “gift-with-purchase” sets.

Macy’s (US)

• Buy a men’s fragrance, receive a free duffle or weekender bag. 
• Popular across brands like Versace, Coach, and Carolina Herrera.

Tatcha (Global)

• Deluxe GWP gift sets offered during holiday promotions.
• A strategy widely used across prestige skincare.

Brands are pairing moderate discounts + highly desirable free gifts, because that combination is driving stronger conversion than deeper discounts alone.

What Today’s Gifts Look Like: Useful, Sustainable, Premium

The definition of a “gift” has evolved. In 2025, consumers expect:

✔ Practicality: something they will actually use (bags, pouches, totes, travel accessories).
✔ Sustainability: recycled fabrics, eco-friendly packaging, reusable items.
✔ Design appeal: aesthetically pleasing, gift-worthy items.
✔ Brand alignment: something that reflects the brand’s values and identity.

These expectations explain why we’re seeing so many:

• Travel vanity bags
• Tote bags
• Duffle/weekender bags
• Cosmetic cases
• Deluxe mini sets
• Reusable accessories

All high-frequency, high-exposure items that extend the brand experience beyond checkout.

The Business Impact: Why Free Gifts Build Real Loyalty

For brands, the benefits of meaningful GWP go far beyond the immediate sale:

Higher conversion rates

A well-chosen gift often outperforms an additional 10–20% discount.

Long-term brand presence

A bag or pouch becomes a daily reminder of the brand.

Stronger emotional connection

A gift creates reciprocity, increasing the chance of repeat purchase.

Better word-of-mouth

Consumers love sharing “I got this for free!” moments — online and offline.

Enhanced customer experience

Gifting elevates the purchase into an “experience,” not a transaction.

In today’s competitive market, this emotional and experiential layer is what sets brands apart.

What This Means for Brands Planning 2025 Campaigns

Gifting is no longer a seasonal gimmick, it’s a strategic tool.

Brands that want to stay relevant should focus on:

• Choosing gifts that feel meaningful and useful
• Ensuring the gift aligns with brand identity
• Offering gifts that customers will keep, use, and carry
• Integrating gifting with loyalty programs, launches, and seasonal campaigns
• Favoring quality and practicality over low-cost, short-lived items

The goal is simple: Create gifts that become long-term brand assets, not disposable items.

How We Support Brands in This New Gifting Landscape

Our role is not to manufacture new products from scratch, but to curate, customize, and provide high-quality branded gifts that fit your brand’s goals, aesthetics, and customer needs.

We specialize in:

• Custom corporate gifting
• Gift-with-purchase items
• Retail gifting campaigns
• Promotional gifting for e-commerce
• Seasonal & loyalty gifting programs

Whether you need tote bags for a beauty brand, duffle bags for a fragrance launch, or practical accessories for a holiday campaign, we help you create gifts your customers will actually love and remember.

Final Thoughts

2025 marks a shift in consumer expectations. Discounts may drive attention, but gifts drive connection.

As shoppers look for brands that offer value, experience, and something they can hold onto, free gifts have become one of the most effective ways to build loyalty and standout appeal.

If your brand is rethinking its gifting strategy for 2025 and beyond, we’re here to help you create gifting solutions that delight customers and strengthen long-term relationships.