DUBLIN--(BUSINESS WIRE)--The "South Africa Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast (2016-2025) - Q2 2021 Update" report has been added to ResearchAndMarkets.com's offering.
According to the Q2 2021 Global Gift Card Survey, gift card industry in South Africa is expected to grow by 16.3% on annual basis to reach US$ 923.2 million in 2021.
Despite near-term challenges in 2021, medium to long term growth story of gift cards in South Africa remains strong. The gift card industry in South Africa is expected to grow steadily in H1 2021 and record a strong growth in H2 2021.
The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 13.9% during 2021-2025. The gift card market in the country will increase from US$ 794.1 million in 2020 to reach US$ 1552.4 million by 2025.
Historically, the gift card market in South Africa has recorded a steady growth with increased adoption in self-use segment. According to the publisher, gift card market growth in South Africa is expected to be impacted across retail and corporate segments due to disruption caused by COVID-19 outbreak. However, certain segments such as self-use which will gain significant market share.
The pandemic induced economic downturn is forcing companies to have an online presence and push their e-commerce offerings which could improve e-commerce growth in the country. The shift from brick and mortar to e-commerce in South Africa has been slow, although half of the population has access to the internet. However, due to the COVID-19 outbreak, the retailers and delivery start-ups have begun selling online and have witnessed an increase in demand as consumers stay away from in-store shopping due to the fear of spread of coronavirus.
Also, online retailers are focusing on strengthening their customer acquisition strategy by offering e-gift cards. Consequently, adoption of e-Gift cards is expected to increase significantly over the next 4-6 quarters.
The rising trend of gift card usage has drawn foreign companies to explore the market in South Africa. For instance, in March 2020, InComm, a payments technology company, launched its gift cards in partnership with Flash and Pepkor Group. The gift cards include gaming, ride-sharing, content, and streaming gift cards via Flash and Pepkor's retail network making these cards available in every South African region.
In South Africa, low youth employment and a weak job market are fueling the growth of its freelance market. In 2020, the freelancers are expected to account for 40-50% of the full-time workforce. Employers are benefiting by the gig model as it helps in the speed of hiring, flexibility, and cost. The trend of gig workers getting paid using gift cards is increasing as these are easy to disburse and use. With the increase in freelancers and gig workers in South Africa, the gift card market will be positively impacted.
Apart from this, corporate spending is also boosting the gift card market in South Africa. Organizations are increasingly making use of gift cards to rewards their employees on popular holidays in the country such as Christmas and New Year.
This report provides a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics in South Africa. With over 200 KPIs at country level, this report provides comprehensive understanding of gift and incentive card market dynamics.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Shoprite Holdings Ltd
- Pick 'n' Pay Stores Ltd
- Internationale Spar Centrale BV
- Wal-Mart Stores Inc
- Woolworths Holdings Ltd (South Africa)
Total Spend on Gifts in South Africa
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in South Africa
- 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 South Africa
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in South Africa
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in South Africa
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in South Africa
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in South Africa
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
- Budget Allocation Trend for 2021
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in South Africa
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in South Africa
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in South Africa
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/zrlpc
