According to Persistence Market Research’s analysis, the gift card market in the APAC region is expected to witness a higher growth rate over the projected period. With the markets in North America and Europe together accounting for more than 65% of the global gift card market revenue share in 2015, an exact estimation of where these markets are headed in terms of performance is the subject of study in a new report by Persistence Market Research titled “Gift Card Market: Global Industry Analysis and Forecast, 2016–2024”. The gift card markets in Latin America and Middle East and Africa are at a nascent stage and revenue from these markets is expected to witness a high CAGR during the forecast period. However, factors such as increasing penetration of smartphones, rising adoption of e-Commerce and gift cards in the corporate sector are responsible for the highest growth of the gift card market in the APAC region.
The analysts have profiled the global gift card market across different geographical regions and on the basis of the various market segments and have provided a critical assessment of the opportunities available to all the companies operating in the global gift card market over an eight year forecast period 2016 – 2024. Primarily the analysts have focused on highlighting the numerous developments that are likely to take place in the global gift card market in the coming years. The analysts have studied the global gift card market extensively and have identified multiple drivers, restraints, and trends that are expected to influence the global gift card market and consequently the business operations of the leading as well as second-in-line players functioning in the global gift card market. Through extensive research, the analysts have studied how the different market dynamics are likely to impact the current environment and future scenario of the global gift card market, thereby providing useful insights to market players to plan their differentiating strategies capable of evolving with the changing market landscape.
This report considers revenue generated from the sales of photo printing and merchandise across the different product types
To calculate the global gift card market size, the report considers revenue generated from the sales of gift cards across all the product types. Macro-economic indicators such as GDP, wholesale and retail trade, merchandise trade, and prices have been considered to arrive at the indicated market numbers. Yearly change in inflation rate has not been considered while forecasting market numbers. Top-down approach has been used to assess market numbers for each product category, while bottom-up approach has been used to counter-validate the reached market numbers.
The report opens with an overview of the global gift card market followed by key definitions and an executive summary. The analysts have also presented the market taxonomy in this section where they have segmented the global gift card market on the basis of type, merchants and region. The report highlights the key market dynamics and presents an independent analysis of the various factors, challenges, and market trends that are likely to define the global gift card market in the next few years. The analysts have devoted the last section of the report to study the market performance of some of the top companies operating in the global gift card market. The researchers have profiled a few of the leading market players and have presented a detailed analysis of their overall business performance and a comprehensive evaluation of their short-term and long-term business and go-to-market strategies.
Global Gift Card Market Segmentation
Persistence Market Research leverages secondary research extensively to ascertain the overall size of the global gift card market and top industry players. In addition, the experienced team of analysts has gathered relevant market insights and data by speaking to the various manufacturers of gift cards and other key stakeholders based in various regions. Another notable feature of the report is an analysis of the revenue forecast of the global gift card market by absolute dollar opportunity, critical in assessing the level of opportunity that market providers can look to achieve and also to identify potential resources in the global gift card market. Finally, Persistence Market Research understands the importance of dissecting the different market segments in terms of their growth and performance in the global gift card market and has developed a unique market attractiveness index to help market players identify current and future market opportunities.
The gift card market in APAC is expected to dominate the global gift card market during the forecast period
In terms of revenue, APAC is projected to be the most attractive regional market in the global gift card market during the forecast period. APAC is projected to dominate the global gift card market from the second half of the forecast period and is anticipated to expand at a CAGR of 14.9% during 2016 – 2024. The APAC gift card market is estimated to be valued at more than US$ 80 Bn in 2017 and is expected to reach more than US$ 200 Bn by 2024 end. The APAC gift card market is poised to register incremental opportunity of more than US$ 100 Bn between 2016 and 2024. The market in China is expected to account for a relatively high revenue share in the APAC gift card market by the end of 2024.
The corporate sector’s strategy of offering gift cards to employees as incentives is the main factor boosting revenue growth of the global gift card market
There is an increasing demand for gift cards in the corporate sector across the globe. Companies are offering incentives to employees in the form of gift cards to recognize employees’ contributions and achievements. Approximately 25% to 35% of a merchant’s gift card revenue is driven by B2B sales of gift cards. A growing adoption of gift cards in the corporate sector in APAC is one of the primary drivers pushing the global gift card market. Gift cards are gaining more popularity in APAC as compared to gift vouchers owing to several benefits offered by these cards. Gift cards can be used more than once owing to the partial redemption option, wherein the remaining balance can be carried over for future purchases.
The rapid proliferation of smartphones in APAC along with the availability of cheaper data plans has led to increasing adoption of m-Commerce. Consumers are increasingly downloading mobile apps such as Amazon, Flipkart, and Ebay for shopping. Various advantages and benefits of m-Commerce such as the ability to browse more quickly and easily make purchases on-the-go are resulting in an increasing number of consumers shifting to this channel to make purchases online. m-Commerce offers the extra benefit of ease of use as it can function on a smart phone or smart mobile devices, along with enveloping all features and benefits of e-Commerce. Gift cards purchased through m-Commerce can be stored on smart phones and retrieved anytime.
Asia Pacific gift card market – Trends
Adoption of m-Commerce is expected to increase rapidly in emerging economies such as China and India, with a growing number of digital initiatives such as Digital India initiated by the respective country governments, resulting in the growth of the gift card market in the APAC region. Further, rapid increase in online sales following the adoption of mobile technologies in countries such as China and India and a rise in organized retail and e-Commerce is expected to further drive revenue growth of the gift card market in APAC over the forecast period. With an increasing number of middle class consumers in the APAC region, sales from stores and retail outlets have also shown remarkable growth. There has also been a steady mushrooming of shopping malls and other organized retail channels across the APAC, more specifically in countries such as India and other South East Asian countries. Apart from these factors, changing consumer tastes and preferences and buying patterns and a rise in disposable income with a subsequent increase in economic growth are some of the key growth trends that are positively impacting the APAC gift card market.
Company Profiles – Open loop
Company Profiles – Closed loop