Nowadays, consumers prefer to buy gift cards, either they are physical or digital, from merchants across multiple channels (in-store, online, mobile websites and apps). The adoption of omni channel concept has been significantly helping companies witness prominent growth in the gift cards market. In present scenario, changing customers purchasing patterns have significantly fuel the growth of the gift cards market. According to National Retail Federation, in 2017, total holiday sales spending increased by 4.3 - 4.8 percent for a total of US$717 billion - US$721 billion. This trend has significantly helped market players to boost their sales in terms of value.
In 2019, InComm Company, in partnership with Razer Inc., launched Google Play gift cards in Malaysia, making the product available in nearly 2,250 7-Eleven stores across Malaysia. More recently this year, CashStar, Inc. launched Interactive Gift Card Platform, which is expected to register new growth opportunities for market players. Companies including Uno Chicago Grill, Travelocity Incentives, and Gorham Bike & Ski are principally engaged in offering interactive gift cards via CashStar platform.
Moreover, there has been an increasing usage of gift cards in the corporate sector to recognize contributions and achievements of employees. In addition, there is high adoption of e-Commerce and m-Commerce in developed and developing countries, owing to high penetration of smartphones and internet connectivity.
Increasing Usage of Gift Cards as a Promotional Tool
The key strategy of players in the market includes usage of gift cards as promotional tools for their companies. Moreover, they are engaged in partnerships with other companies to give offers on their products by means of gift cards. This strategy helped companies increase their sales in terms of volume.
Demand for gift cards in the corporate sector has been witnessing significant rise globally. Companies are inclined towards motivating their employees in the form of gift cards, as a recognition to their contributions and achievements. Gift cards are convenient and safe, and have proven to be a novel means of rewarding employees for their performances.
Omni-channel Capabilities to Provide Growth Opportunities
Most of the key players in the gift cards market are principally engaged in offering gift cards through their own online sales channel, physical stores, and third e-Commerce parties. Selling gift cards through physical stores as well as online channel help companies to target customers across the globe. The omni channel concept is thus expected to help companies to witness significant growth during the forecast period in terms of value.
Changing Lifestyle and Continued Preference for e-Purchasing
Increasing adoption of cash to card concept is positively influencing the demand for gift cards by consumers. This form of alteration in the lifestyle of individuals is inspiring them to purchase gift cards and has significantly boosted the growth of the gift cards market in terms of value.
Partial Redemption Feature Encouraging Consumers to Opt for Gift Cards
Consumers participated in loyalty programs in order to earn gift cards as rewards. They can later spend the prepaid value of these gift cards on purchases. Gift cards sometimes act as budgeting tool for consumers as consumers decide only to make purchases equivalent to the amount available on their gift cards and not to pay any extra out of their pockets. This is a primary factor encouraging consumers to opt for gift cards. Furthermore, some outlets also offer deals on gift cards for their regular customers. On purchase of a gift card, a bonus gift card of lesser amount is offered, and this can act as a mode of driving customers’ satisfaction.
Self-use Purchase Emerging as a Key Trend
According to Blackhawk Company, 51 percent of consumers purchase gift cards for themselves to shop online as they can receive a discount or take advantage of a promotion, collect credit card points, earn airline miles, and for budgeting purposes. This high level of self-use is expected to cause brands to re-examine their e-Commerce gift cards purchase experiences.
A brief overview of changing the landscape of the gift cards market has led our analysts to conclude that, the market is exponentially gaining popularity. The demand from developing as well as developed countries holds a specific prominent share of the gift cards market. The market in the North America is at stagnancy stage due to presence of large numbers of players in the region. On the other hand, developing countries are estimated to hold a significant share in the gift cards market. Experiencing the trending demand for gift cards make market players keen to invest in product innovations.
Persistence Market Research (PMR) recently published a new research analysis on the gift cards market for the assessment period of 2019-2029. The research study offers a close look at the evolving aspects of the gift cards market and dynamics impacting market growth. It also focuses on key developments that have made the mark in the gift cards market and what other developments are on the cards. The report talks about various macro- and micro-economic factors responsible for giving in-depth analysis of the market.
The research study on the gift cards market extensively focuses on key trends shaping its growth. In addition, opportunity analysis on gift cards underline untapped corners for aspiring players to make a note of. In addition, this research study also offers a panoramic view of the incremental opportunity, which can further help readers make well-informed decisions.
Several stakeholders in the gift cards market can rely on the data offered in this research study and delve into the pragmatic decision-making. Moreover, information offered in the report also can help new market entrants to expand their bases in the market.
The report elaborates on both the historical and current trends molding the growth of the gift cards market. The performance of gift cards has been drawn and analyzed in ways that the lucrative side of the market is evident to readers. Competitive landscape provided in the report gives a detailed outlook of profiles of key companies operating in the market, along with their differential strategies and key focus areas.
Gift Cards Market: Segmentation
PMR’s research study on the global gift cards market offers a detailed market analysis, wherein the key segments have been discussed in detail. The segmentation of gift cards has been offered on the basis of type, and merchant. Every segments have been analyzed in detail, and data pertaining to the growth of each segment has been included in the study.
The gift cards market research report includes a competitive landscape that provides a dashboard view of key competitors operating in the market. Some of the market players profiled in this section include -
Gift Cards Market: Key Questions Answered
The research study offers inclusive insights about the growth of the gift cards market in the most comprehensible manner for the better understanding of readers. Key insights offered in this report answer some of the salient questions that assist stakeholders in gauging all emerging possibilities.
Gift Cards Market: Research Methodology
A unique and promising research methodology forms the base of the gift cards market during the forecast period. The report has been prepared after a comprehensive analysis of market happenings, and riveting insights have been compiled meticulously. The research methodology for the gift cards market is a two-step process comprising of primary and secondary researches. Key stakeholders, including gift card products suppliers and manufacturers, and experts of several designations, including executive vice presidents, directors, service engineers, technical advisor, GM marketing professionals, and sales professionals have been interviewed.
The secondary sources referred to garner report findings include investor presentations of manufacturers, banking industry report, VISA, MasterCard, and many other credible sources.
Company Profiles – Open loop
Company Profiles – Closed loop