Gift Card Strengthens its Position as the Gift for Family, Friends and Colleagues
Gift Cards Prove to be Corona Proof
Gift cards prove to be a popular gift to give and to receive during the pandemic. Research conducted by GfK Nederland by the Trade Association Gift Cards Netherlands (BVCNL) shows this. For many consumers, gift cards are among their favourite gifts and they even ask specifically for a gift card. The highlight of the season is the Christmas period. A gift card is now the favourite end-of-year gift for 52% of employees.
Many people like to give a gift card. The main reason (57%) is that giving a gift card is more fun than giving cash. Together with the various possibilities that gift cards offer, this is the most important purchase motive. Of course, the wish of the recipient also plays an important role. In 2020, 1 in 5 recipients asked for a specific gift card as a gift.
An Increasingly Personal Gift
32% of people who buy a gift card give it as a birthday present. The tickets are then mainly bought for children (22%), family members (22%) and friends (16%). That makes gift cards a very personal gift. The gift card is by far the favourite of employers as an end-of-year gift. More than half of all employees who have received a year-end present prefer a gift card. This makes the gift card a lot more popular as an end-of-year gift than the Christmas hamper.
Changes due to Corona
In our country, an estimated value of € 1.5 billion in gift cards is bought every year. Logically, there are clear differences in the past year compared to previous years. Gift cards were under pressure in the hospitality industry and culture, while web shops often performed extra well. These differences can also be seen in the places where consumers bought their gift cards. Apart from supermarkets, many of these stores were closed in December – the most important sales period for gift cards. This has also meant that gift cards were increasingly bought and redeemed digitally.
Value and Extra Spending Increases
Gift cards generate extra sales at the location where they are redeemed. 54% of consumers spend more than the value stated on the gift card. The average extra expenditure in 2020 was no less than € 47. An increase of 9% compared to 2019. This makes them important for, among others, local entrepreneurs who need extra turnover. The average value of a gift card increased significantly from € 35 to € 39 last year.
Physical Card Versus Online Code
While online is on the rise as the preferred channel for buying gift cards, 59% still prefer to buy from a brick-and-mortar store. The main reasons for this are that the buyer likes to receive the gift card directly at home and that the cards are nicely packaged.