DUBLIN, August 15, 2022 /PRNewswire/ — The report “Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.
australia the gift card industry is expected to grow 11.3% on an annual basis to reach US$6,060.3 million in 2022. Despite the short-term challenges in 2022, the medium and long-term growth of gift cards in Australia stay strong.
The gift card industry Australia is expected to grow steadily in the first half of 2022 and register strong growth in the second half of 2022. The growth momentum is expected to continue to grow over the forecast period, registering a CAGR of 8.8% during the period 2022-2026. The domestic gift card market will grow from US$5,446.5 million in 2021 to reach US$8,504.0 million by 2026.
Major Digital Gift Card Providers Consider Public Issue In Australia
Amid growing consumer demand for digital gift card solutions due to the global pandemic and associated global supply chain crisis, vendors have seen strong growth in recent quarters. . Buoyed by this substantial growth, digital gift card players are also eyeing stock market float in Australia.
Prezzee, a leading digital gift card player in Australia, plans to debut on the stock market as it seeks to capitalize on investor attention in the fintech and payments space. Founded in 2014, AustraliaPrezzee-based Prezzee is expected to issue more than 20 million gift cards in 2021. The company has seen strong growth in particular, with sales up 222% year-on-year.
Prezzee also revealed that the company is on track to process over A$1 billion in corporate and retail cards in its 2022 financial year, up from over A$430 million in 2021. its public issuance, the company also expects to hold a significant share of the global gift card market.
The publisher expects more digital gift card players in the country to consider the public question for their fundraising strategies over the next four to eight quarters as consumer sentiment for the companies of the fintech and payments sector remains strongly positive and at an all-time high.
Traditional banks are buying stakes in digital gift card companies to stay competitive in Australia
As the demand for effective and innovative gift card solutions continues to grow among consumers of Australiaeven banking players are seeking to enter the sector through strategic investments and partnerships.
In October 2021the Commonwealth Bank of Australia (CBA) announced a strategic partnership with AustraliaKarta, a start-up based on digital gift cards. Notably, the strategic partnership between the two business entities is expected to support the gift experience for both consumers and businesses.
Notably, Karta combines gifting experiences with technology, which aims to simplify gift cards for consumers and businesses. This strategic partnership with Karta should help the CBA to strengthen its commercial offer. Additionally, the new partnership will allow consumers to purchase digital gift cards from all participating businesses.
AustraliaGift Card-Based Gift Card Providers Are Growing Globally
While the global gift card market is expected to experience strong growth in the short to medium term, Australia-digital gift card providers are looking to expand their services in the global market.
In November 2021Prezzee has deployed its services in the UK, before the high season of gifts. Likewise, the company plans to expand its activities in other European countries, such as France and Germanyin 2022.
Globally, the company has partnered with 750 retailers, including 120 in the UK. Its expansion into UK builds on strong demand for innovative gift card solutions. According to Prezzee, over 108 million gift cards have been sold in the UK in 2019, for a total of £5 billion. This is set to rise by 25% to £8.8bn by 2025, which the company is looking to capitalize ahead of the festival season in the country.
Apart from Australiathe company is also operational in United States. Its partnership with Macy’s and Uber Eats in United States helped the company increase revenue by 400%. Prezzee has also entered into a strategic partnership with MasterCard to attract more customers. It is estimated that the company will hold more than 5% market share by 2023 due to its agreement with MasterCard.
Reasons to buy
- In-Depth Understanding of Gift Cards and Incentive Cards Market Dynamics: Understand the market opportunities, key trends and drivers along with the five-year forecast (2017-2026) for Gift Cards and Incentive Cards in Australia.
- Develop market-specific strategies: identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift card strategy; assess key market-specific trends and risks.
- Get insights into consumer attitude and behavior in Australia: Understand changing consumer attitude and behavior and increase return on investment. Get detailed insights into retail spend with gift cards for individuals and businesses.
- Get a complete perspective with six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction and value of transactions.
- Distribution channel insights: Understand the dynamics of gift card sales by channel – online vs. offline sales and first-party vs. third-party sales.
Closed Loop Gift Card Market Share by Major Retailers
- Wesfarmers Ltd
- Woolworths Ltd (Australia)
- Metcash Ltd
- Aldi Group
- Harvey Norman Holdings Ltd.
- JB Hi-Fi Ltd
- Apple Inc.
Total spend on gifts in Australia
- By consumer segment (retail and business)
- By product categories (13 segments)
- By retail sectors (7 segments)
Gift Card Market Size by KPIs in Consumption Segments Australia
- Gross load value
- Transaction value
- Unused value
- Average value per transaction
- Transaction volume
- Average value of card purchased
- Number of cards
Gift Card Market Size by Consumer Segment in Australia
- retail consumer
- Corporate consumer (small scale, intermediate, large enterprise)
Digital gift card market size in Australia
- Per retail consumer
- Per Retail Opportunity
- By Corporate Consumer
- By Business Buying Opportunity
- By business size
Gift Card Market Size by Retail Consumer in Australia
- By functional attribute
- By Occasion1. Festivals and special days of celebration
2. Milestone Celebration
- Value by buying channel
Gift Card Spending by Consumer Behavior and Demographics Australia
- 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 in Australia
- By functional attribute
- By Occasion1. Employee incentive
2. Sales incentive
3. Consumer incentive
- By activity scale
Spending on gifts by product categories (disaggregated by individuals and businesses) in Australia
- food and drinks
- Health, well-being and beauty
- Clothing, shoes and accessories
- Books and multimedia products
- Consumer electronics
- Restaurants & Bars
- Toys, children and babies
- Sport stuff
- Home and kitchen accessories and appliances
- Entertainment and games
Spending on gift cards by retail sector (split between retail consumers and businesses) in Australia
- E-commerce and department stores
- Restaurants & Bars
- Supermarket, hypermarket, convenience store
- Entertainment and games
- Specialty stores
Spending on gift cards by distribution channel (split between individuals and businesses) in Australia
- Online gift card sales
- Offline gift card sales
- First party sales
- Sales to third parties
- Increase in sales
For more information about this report visit https://www.researchandmarkets.com/r/6w7i52
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