The strong growth in the e-commerce sector primarily supported the overall gift card industry during 2020, a trend expected to continue over the forecast period. Increasing smartphone penetration and consumer’s inclination towards online shopping has positively impacted e-commerce sector. In South Africa, for instance, the growth in the e-commerce market is one of the factors driving gift card market growth in the country. With growing online sales the spending on gift cards is also likely to increase in the country.
The gift card market in Kenya recorded substantial growth in the last few years. As one of East Africa’s largest economies, technological advancements in the payment industry widened the scope of the gift card market in Kenya. The market growth has been primarily backed by the rising adoption of gift cards by the millennials and Gen Z consumers, expansion of the retail sector, and growing inclination towards cryptocurrencies.
Consumers are widely accepting alternative payment options such as mobile wallets and electronic money transfer, instead of cash. The presence of the international brands in the Nigerian mobile payment system such as Visa with mVisa platform makes the mobile payment system more competitive. Moreover, it is expected that the global economic slowdown is unlikely to affect Africa’s economy and the gift card market in the coming years.
The demand for gift cards is also increasing in line with the demand for cryptocurrencies. The trend of converting gift cards into bitcoins and then into cash is gaining popularity among the Nigerians and Kenyans. Cryptocurrencies and gift cards are driving the remittance market in Africa, and more specifically in Nigeria. Key players such as Paxful allow Nigerians to trade gift cards offered by domestic players such as Konga or Blessing Computer for bitcoins. Other notable players offering this service in the country are Cardnosh and Cardtonic. Also, the demand for cryptocurrencies is increasing in Kenya which is alternatively driving the growth of gift cards. This is due to the ease of buying gift cards with cash and trading them for cryptocurrencies, without revealing the user’s identity.
The gift card market in the Middle East region has witnessed strong growth over the last few years. Adoption of gift card has increased across retail and corporate segments with a range of use cases which go beyond “gifting”. One of the factors driving growth is the e-commerce market. Merchants are incentivizing customers for shopping online and offering gift cards to increase sales and drive customer loyalty.
This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by Covid-19 outbreak on gift card industry.
This report includes country level trend analyses across the following gift card segments:
- Total gift market: Detailed view of overall spend on gifts, broken down by retail and consumer segments.
- Gift cards: In-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories.
- Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Corporate incentive & loyalty cards: Market dynamics of corporate incentive cards, broadly segmented in three categories – consumer incentive card, employee incentive card, and sales/partner incentive card.
- Digital gift card analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion.
- Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
- Consumer attitude and behaviour: Key KPIs related to gift card dynamics including spend by age, gender, and income level. In addition, it provides an overview of how consumers are currently using gift cards across key retail sectors.
- Retail spend: Breaks down retail spend across retail sectors to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
- Market share by retailer: Market share of closed loop gift cards by key retailers.
- Distribution channel analysis: Market share by distribution channel – online vs offline sales and 1st party vs 3rd party sales.
- Shufersal Ltd
- Super-Pharm (Israel) Ltd
- Rami Levi Shivuk Hashikma
- Yeynot Bitan Ltd
- Hamashbir 365 Holdings Ltd
- Dor Alon Israel Ltd
- Inter Ikea Systems BV
- Shoprite Holdings Ltd
- Pick ‘n’ Pay Stores Ltd
- Internationale Spar Centrale BV
- Wal-Mart Stores Inc
- Woolworths Holdings Ltd (South Africa)
- BIM Birlesik Magazacilik AS
- Migros Tic AS
- LC Waikiki Magazacilik Hizemetleri Tic AS
- Koc Holding AS
- Teknosa Ic ve Dis Ticaret AS
- Carrefour SA
- A101 Yeni Magazacilik AS
- Yildiz Holding AS
- Consumer Co-operative Union (CCU)
- Landmark Group
- Emke Group
- Damas International Ltd
- T Choithram & Sons
- Sharaf DG LLC
- Savola Group
- Saudi Co For Hardware (SACO)
- Jarir Marketing Co
- United Electronics Co
- Inditex, Industria de Diseno Textil SA
For more information about this report visit https://www.researchandmarkets.com/r/qawncj
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