Monday 28 January 2019

Survey finds gift card usage gaining ground in non-metros

Survey finds gift card usage gaining ground in non-metros 
PUNE: Qwikcilver Solutions, which runs online gifting platform Woohoo, said gift cardusage in nonmetros doubled in 2018 from the previous year and that the average value of a gift card in non-metros increased 20% to Rs 3,000.

Across India, the market for gift cards grew two and a half times in 2018, as per a survey conducted by Woohoo. Among non-metros, the fastest growing cities included Ahmedabad, Patna, Indore, Agra and Bhubaneswar which grew three to five times during this period.

“The growing demand for gift cards in non-metro cities is a reflection of the widespread acceptance of gift cards as a preferred form of gifting,” said Pratap TP, cofounder, Qwikcilver Solutions. “The proliferation of smartphones in tier- II cities and beyond has certainly played a significant role in getting consumers across geographies to use gift cards.”

The gift card market in India is expected to grow more than threefold in the next four years from about Rs 10,000 crore a year, with non-metros likely to account for 40% of it within two years, according to Qwikcilver.

“The top 150 brands across 30 consumer categories have focused on driving their respective gift card category adoption by their consumer base. This straddles the offline and online categories. Segments such as department stores, travel, hospitality, fashion, grocery and personal accessories have contributed to their growing adoption and consumer preference,” said Pratap.

Survey finds gift card usage gaining ground in non-metrosWhile physical gift cards grew one and a half times over 2017, 90% of the card purchase transactions were done via mobile phones. E-gift cards saw higher demand in non-metros, with 95% transactions done digitally. The top three categories – ecommerce, grocery and fashion – grew fourfold, threefold and twofold respectively in a year.

According to the survey, 85% of the gift card users were aged below 35 years and half of them were under 24. In non-metros, nearly 90% were below 35 years old and 55% below the age of 25. Significantly, half the buyers across India were below

24. “While millennials have been key influencers of gift cards so far, the coming years will see acceptance among a wider age group of consumers,” said Pratap.

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