Middle East & Africa Gift Cards & Motivational Cards Market
Dublin, 05 Nov 2021 (GLOBE NEWSWIRE) – The report “Middle East and Africa Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Market Size and Forecast (2016-2025) – Q2 2021 Update” has been added to ResearchAndMarkets.com offer.
The socio-economic environment in Africa is expected to rebound, which could have a positive impact on the gift card market. The Kenyan economy is expected to recover in 2021 with a real GDP increase of 6.9% year-on-year. While South Africa, Africa’s second-largest economy, recorded 13.5% quarter-on-quarter GDP growth in July-September 2020, recovering from the pandemic crash.
Strong growth in the e-commerce sector has mainly supported the entire gift card industry in 2020, a trend that is expected to continue during the forecast period. The increasing penetration of smartphones and the inclination of consumers to shop online has had a positive impact on the e-commerce industry. In South Africa, for example, the growth of the e-commerce market is one of the factors driving the growth of the gift card market in the country. With the growth of online sales, spending on gift cards is also expected to increase in the country.
The gift card market in Kenya has experienced substantial growth in recent years. As one of the largest economies in East Africa, technological advancements in the payments industry have widened the reach of the gift card market in Kenya. Market growth has been primarily driven by the growing adoption of gift cards by millennials and millennials consumers, the expansion of the retail industry, and the growing inclination towards cryptocurrencies.
Nigeria’s e-commerce sector is dominated by national e-commerce companies such as Jumia and Konga. Hence, gift cards from these online retailers are also gaining popularity among Nigerians. Additionally, international grocery retailers such as Spar have a strong presence in the Nigerian gift card market.
Consumers widely accept alternative payment options such as mobile wallets and electronic money transfer, instead of cash. The presence of international brands in the Nigerian mobile payment system such as Visa with the mVisa platform makes the mobile payment system more competitive. In addition, the global economic downturn is not expected to affect the African economy and the gift card market in the coming years.
The demand for gift cards is also increasing along with the demand for cryptocurrencies. The trend to convert gift cards to bitcoin and then cash is gaining popularity among Nigerians and Kenyans. Cryptocurrencies and gift cards are the driving force behind the remittance market in Africa, and more specifically in Nigeria.
Key players such as Paxful allow Nigerians to exchange gift cards offered by domestic players such as Konga or Blessing Computer for bitcoins. Cardnosh and Cardtonic are other notable players offering this service in the country. In addition, the demand for cryptocurrencies is increasing in Kenya, which in turn leads to the growth of gift cards. This is due to the ease of buying gift cards with cash and exchanging them for cryptocurrencies, without revealing the identity of the user.
The gift card market in the Middle East region has experienced strong growth in recent years. Adoption of the gift card has grown in the retail and corporate segments with a range of use cases that go beyond the âgiftâ. One of the growth factors for gift cards is the e-commerce market. Merchants encourage customers to buy online and offer gift cards to increase sales and build customer loyalty. The growth of e-commerce is expected to drive the adoption of digital gift cards.
In the United Arab Emirates, in particular, the e-commerce market grew in 2020, with more consumers buying online due to restrictions on movement due to fears of the spread of COVID-19. Additionally, the need for a greater online presence has supported the growth of e-commerce. As a result, the adoption of digital gift cards has grown rapidly.
Due to the pandemic, consumer behavior has changed. There has been a shift from physical gifts and gift cards to electronic gift cards, due to restricted movement due to Covid-19. Therefore, the penetration of electronic gift cards increased significantly in 2020. During the forecast period, the publisher expects electronic gift cards to continue to gain market share.
Entertainment-based gift cards are gaining popularity in the region, particularly in the United Arab Emirates, thanks to the growing penetration of smartphones as well as the growing popularity of OTT (over-the-top) media or services. Internet streaming. OTT traffic has accelerated further during the COVID era as people are confined to their homes and spend more time on leisure activities.
In October 2020, Mastercard partnered with Amazon to offer Amazon Prime members in the UAE 20% cash back as a gift card on the main day, when paid with Mastercard. In addition, customers signing up for Mastercard Platinum, World and World Elite Mastercard debit and credit cards issued by banks in the United Arab Emirates received an annual subscription to Amazon Prime.
Changing socio-economic conditions mainly due to the coronavirus pandemic are changing the overall retail ecosystem. Sustainability has become of primary importance to manufacturers and retailers during the ongoing pandemic. Therefore, retailers are focused on expanding their reach and building long-term relationships with manufacturers and consumers. It’s important to note that the new trend in the retail ecosystem is creating substantial growth opportunities for hyperlocal retailing and co-branding gift cards.
Additionally, given the current situation, companies have focused on motivating and inducing their employees through digital gift cards. Plus, multipurpose cards help businesses provide employees with a flexible gift option.
Growing consumer interest in cryptocurrencies is also driving the growth of the gift card market. In Israel, for example, consumers can buy bitcoin and other altcoins through gift cards or vice versa. It has also enabled third-party players such as paxful.com and bitrefill.com to allow consumers to exchange bitcoin for gift cards.
This report details the impact of the economic downturn as well as changes in business and consumer confidence due to the disruption caused by the Covid-19 epidemic on the gift card industry.
Although the growth of the gift card industry has been affected due to the pandemic, some segments will gain market share. Interesting trends are emerging in various segments that are expected to fundamentally reshape the dynamics of the gift card industry. Despite the short term challenges, the medium to long term growth of gift cards remains strong.
This offer is a bundle, combining 8 country reports (Egypt, Israel, Kenya, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates).
This bundle offers the following detailed gift cards market opportunity at country level
Total spending on gifts
- By consumption segment (retail and business)
- By product categories (13 segments)
- By retail sector (7 segments)
Gift Card Market Size by KPI in Consumer Segments
- Gross load value
- Transaction value
- Unused value
- Average value per transaction
- Volume of transactions
- Average value of the card purchased
- Number of cards
Gift Card Market Size by Consumer Segment
- Retail consumer
- General public (small scale, intermediate, large company)
Digital Gift Card Market Size
- By retail consumer
- By retail purchase occasion
- By the corporate consumer
- By business purchase opportunity
- By company size
Gift Card Market Size by Retail Consumer
- By functional attribute
- By Occasion
- Festivals and special days of celebration
- Milestone celebration
- Value by purchasing channel
Gift card spending by consumer behavior and demographics
- Consumer buying behavior
- Gift card buyer by age group
- Gift card buyer by income level
- Gift card buyer by gender
Gift Card Market Size by Company
- By functional attribute
- By Occasion
- Employee incentive
- Sales promotion
- Consumption incentive
- By activity scale
- Trend in budget allocation for 2021
Spending on gifts by product category (broken down by retail and corporate consumers)
- food and drinks
- Health, wellness and beauty
- Clothing, shoes and accessories
- Books and multimedia products
- Consumer electronics
- Restaurants and bars
- Toys, children and babies
- Sport stuff
- Home and kitchen accessories and appliances
- To travel
- Entertainment and games
Gift card spending by retail industry (broken down by retail and business consumers)
- E-commerce and department stores
- Restaurants and bars
- Supermarket, Hypermarket, Mini-market
- Entertainment and games
- Specialty stores
- To travel
Gift card spend by distribution channel (broken down by retail and corporate consumers)
- Online sale of gift cards
- Offline gift card sales
- First party sales
- Sales to third parties
- Sales increase
Closed Loop Gift Card Market Share by Major Retailers. The main retailers covered include:
- 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 Inc stores
- 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
- Union of Consumer Cooperatives (CCU)
- Landmark Group
- Emke Group
- Damas International LtÃ©e
- T Choithram & Fils
- Sharaf DG LLC
- Savola Group
- Saudi Co for material (SACO)
- Jarir Marketing Co
- United Electronics Co
- Inditex, Industria de Diseno Textil SA
For more information on this report, visit https://www.researchandmarkets.com/r/1jy0zt