gift cards market growth

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 to come.

Increasing 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.

Omni-channel 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.

e-Purchase Lifestyle and Continuous Preference Changes among Consumers

The increasing 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 market size.

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Partial redemption feature to encourage consumers to choose a gift card

Consumers have 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.

Online 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