gift cards market demand
The key drivers in
the gift cards industry are product innovation, increased adoption in the
retail industry, expanded application areas among end-users, and high
smartphone adoption rates. Moreover, the proliferating e-commerce and
m-commerce industry have been also supporting the global Gift Cards Market growth from the last decade. The following are some
of the major trends that will influence gift cards market demand in the years
use of gift cards as promotional tools
One of the key
strategies of market players involves the use of gift cards as a promotional
tool for the company. In addition, they are engaged in partnerships with other
companies to offer their products with gift cards. This strategy has helped
companies increase sales in terms of volume.
The demand for gift
cards in the corporate sector is increasing significantly across the world.
Companies tend to motivate employees in the form of gift cards as a perception
of employee contributions and performance. Gift cards are convenient, secure,
and have proven to be a new way to reward employees for performance.
functions that provide growth opportunities
Most of the major
players in the gift cards market are primarily engaged in offering gift cards
through their online sales channels, physical stores, and third-party
e-commerce parties. Selling gift cards through physical stores and online
channels can help businesses target customers around the world. Thus, the
Omni-channel concept is expected to help companies witness significant growth
in terms of value during the forecast period.
Lifestyle and Continuous Preference Changes among Consumers
adoption of the cash-to-card concept has positively impacted consumer demand
for gift cards. These changes in personal lifestyles have led to the purchase
of gift cards and have significantly boosted the expansion of the gift cards
Request a sample
redemption feature to encourage consumers to choose a gift card
joined loyalty programs to earn gift cards as rewards. They can later use the
prepaid value of these gift cards for purchases which grabs mass attention from
the public. Besides, Gift cards may act as a consumer's budgeting tool, as
consumers could themselves decide only to make purchases that are equivalent to
the amount available on the gift card and do not pay extra from their pockets.
This is a key factor that encourages consumers to choose a gift card option
rather than paying through other means.
Also, some retailers
offer discounts on gift cards for regular customers which again motivates them
to return for making additional purchases. Wide implementation of such
strategies should accelerate the gift cards market trends in the long run.
shopping and self-use of the gift cards an emerging trend
According to the
Blackhawk Company, 51% of consumers can shop online because they can get
discounts, redeem promotions, and earn credit card points. E-commerce sites are
boon to the gift cards industry. And with customers enjoying a high level of
self-use of the gift cards, brands are expected to revamp their e-commerce gift
card strategies to improve the purchasing experience for consumers.
Author Name : Report Hive Research