The Australian gift market has recorded a CAGR (compound annual growth rate) of 29.6% from 2015 to 2019. From 2020 to 2024, it is expected to have a market turnover of 19.6% CAGR, achieving AUD 3249.5 million in the country. While physical gift cards are still available in stores, the prevalence of e-commerce has resulted in a greater preference for e-gift cards.
Have a problem selecting a gift for loved ones? Cannot choose a gift even after spending hours together deciding on it? There is something called a digital gift as well. One can save precious time by using them. They are electronic gift cards that replicate traditional gift cards online. Customers can purchase gift cards of a particular value and receive them electronically within a few minutes. These cards can be used to buy products or services in relevant retail stores and businesses.
Everyone likes to give things to their loved ones on special occasions. For last-minute buyers, it might be challenging to find the right present, which makes gift cards their best choice. The purchases are highest during the holiday season. When a company provides digital gift cards, it is an uptick for the business as people readily invest in them for their convenience and easy availability.
With digital cards, the company gets two customers in one. One is the buyer providing immediate revenue, and the other is the receiver who does not necessarily know the company or brand. It is an opportunity for companies to grab new customers through e-mail marketing and social media marketing. It makes a sincere effort to keep them wanting to return to the store.
Physically given gifts can be stolen or damaged. Digital cards provide trust regarding the gift or the money invested as both are safely stored online. This factor automatically builds trust towards the brand or company.
Physical cards result in unpleasant expenditure to the business as they must invest in physically printing the cards and maintaining them. With digital gift cards, the cost of production, maintenance, and sales is low.
A company with a digital storefront uses these cards to boost its physical store presence. For example, if a customer who uses gift cards wants to check the products offline, they would visit a nearby store to make their purchase.
All the purchases made using electronic gift cards are easily traceable, making the workload lesser for the companies. They can have a hunch about their future inventory well in advance.
Everyone likes personalized gifts compared to generic ones. Gift cards can range from restaurant cards to free steam cards aiming at clothing, accessories and electronic gadgets. E-commerce websites allow customers to personalize gift cards by providing them with the option to write something or add graphically pleasing images on the card. Whatever is on the gift card is out of love or care towards the receiver, making the gift unique.
There are fewer chances to present gifts in person in today’s world. Without any contact, one can express their love towards the recipient they care for regardless of the circumstance. Instant delivery to the inbox is sure to bring an automatic smile on their faces.
Buying unwanted gifts is not just awkward it also is a waste of time, money, effort, and resources. The gift card allows the recipient to buy what they need and avoid disappointments.
Author: Siddhi Chothani