A) Market Overview:
The global gift card market is estimated to be valued at US$400 billion in 2018. According to a new report published by Coherent Market Insights, it is projected to reach a value of US$ (insert market value for 2022) billion/million by 2022, with a compound annual growth rate (CAGR) of (insert CAGR)% from 2019 to 2027. This growth can be attributed to the increasing demand for gift cards in various sectors such as retail, e-commerce, and hospitality.
Gift cards have become an increasingly popular choice for both consumers and businesses alike. They offer convenience, flexibility, and the ability to personalize gifts, making them an attractive proposition in the gifting industry. In addition, digital gift cards have gained significant traction due to their ease of purchase and use. This market overview provides insights into the dynamics, key trends, SWOT analysis and key takeaways of the global gift card market.
B) Market Dynamics:
The gift card market is driven by two main factors: consumer preference for cash alternatives and the rise of e-commerce. Firstly, consumers are increasingly choosing gift cards over traditional gifts or cash due to their convenience and versatility. Gift cards allow recipients to select their preferred products or services, making them more personalized than cash.
Secondly, the surge in e-commerce has boosted the growth of the gift card market. As online shopping becomes more popular, retailers are offering digital gift cards as an option for customers. E-gift cards can be instantly sent via email or mobile messaging, providing a seamless shopping experience.
For instance, Amazon.com Inc., one of the key players in the market, offers various types of gift cards that can be redeemed on their platform, providing customers with a wide range of choices. Retail giants like Walmart and Target also offer their own gift cards, enabling customers to shop conveniently both online and in physical stores.
C) Market Key Trends:
One key trend in the gift card market is the integration of loyalty programs with gift cards. Many businesses are leveraging gift cards to incentivize customer loyalty and retention. By offering rewards points or discounts on future purchases, companies create a win-win situation, encouraging customers to return while increasing brand loyalty.
For example, Starbucks Corporation has successfully implemented its loyalty program, offering rewards and exclusive perks through its mobile app. By incorporating their gift cards into the program, Starbucks has seen a significant increase in customer engagement and repeat business.
D) SWOT Analysis:
Strength: The Global Gift Card Market Growth offers a convenient and personalized gifting solution, attracting consumers seeking unique and flexible options.
Weakness: The market is at risk of being affected by economic downturns and changing consumer preferences, limiting growth potential.
Opportunity: The growing popularity of digital gift cards presents an opportunity for businesses to expand their offerings and reach a wider audience through e-commerce platforms.
Threats: Counterfeit gift cards and fraud pose threats to the market’s credibility and consumer trust. Additionally, increased regulations and restrictions may hinder market growth.
E) Key Takeaways:
Market size: The global gift card market is expected to grow at a CAGR of (insert CAGR)% over the forecast period, driven by increasing consumer preference for cash alternatives and the rise of e-commerce.
Regional analysis: North America is expected to dominate the gift card market due to the presence of major players like Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Walmart Stores, Inc. However, Asia-Pacific is projected to be the fastest-growing region due to the increasing adoption of e-commerce and rising disposable incomes.
Key players: The key players operating in the global gift card market include Apple Inc., Amazon.com Inc., Best Buy Co., Inc., Starbucks Corporation, Target Corporation, and Walmart Stores, Inc. These players are actively expanding their presence in the market and innovating their offerings to cater to evolving consumer needs.
In conclusion, the global gift card market is poised for significant growth in the coming years. The convenience, personalization, and flexibility offered by gift cards, combined with the rise of e-commerce, make this market a lucrative opportunity for businesses. By leveraging key trends, understanding market dynamics, and addressing SWOT factors, industry players can position themselves for success in this thriving industry.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.