Why gift cards are gaining traction?

The custom of gifting is intrinsic to Indian culture. Gifts have always been an integral part of traditional occasions such as religious festivals, anniversaries and weddings. Now, they have also become a significant part of contemporary celebrations such as Valentine’s Day, Mother’s Day, Father’s Day and a host of other such occasions. However, certain issues such as the persons personal preferences, logistic issues like sending big bulky gift etc. have prompted people to offer gift card voucher. As not only it allows freedom at the hand of the receiver of the gift card voucher to buy product of his / her choice but they actually also enjoy the pleasure of Shopping themselves

No more cash

Gift card voucher is like a Brand Currency, it is a mode payment and accepted by the Brand as any other payment method Cash, Bank Cards etc. Gift card voucher are used for in Employ R&R ( Reward and Recognition ) programs for making payouts in channel and dealer incentive programs and consumer loyalty programs. So may it be a employee of a company or its dealer or the customer’s Gift card voucher can be used instead of Cash as it saves close to 10 % to 20 % cost. The best part being this does not involve cash hence no tax lability , and recipients can purchase service or products from certain outlets or shops within a particular geographic location as specified on the gift card voucher. These days person to person gifting is also catching up a lot and, there are E-Gift Cards of various entailers as well which can be used for various purchases. For example, with a Myntra voucher you can buy any product from their website for a particular amount.

How a gift card voucher works?

This card has become the new-age cash envelope during marriage and other ceremonies in India. The card is basically used for shopping, dining, entertainment or any other purpose the recipient may deem fit. The gift card also carries an expiry date before which the card has to be utilized.

Benefits of gift card vouchers

  1. The transaction method makes it easier for the card holder to make his payments after buying certain products. A person does not have to carry cash while shopping.
  2. The gift card voucher minimizes the cost of printing new notes for the government of a country to some extent.
  3. The system runs on electronic technology that is very secured and traceable as compared to cash payments. Even if your gift card gets lost or stolen, it will not create any problem since it can be blocked.

Factors driving the usage of gift cards

Increase in occasions for celebrations

These days apart from regular occasions, there are some new ones as well. For example, Valentine’s Day, Father’s/Mother’s Day and Thanksgiving etc. During these occasions, e-retailers like Myntra introduce sales and discounts on their products on offer and their voucher can be used to avail these. Gift cards are perfectly suited for these new-age occasions and are very much customized to suit people’s requirements.

Apt for formal events

Gift cards can be very handy during formal occasions and parties, where guests do not know what the host would prefer as gifts. Industry events and corporate parties are occasions where people want to give expensive gifts that will make the recipients very happy. A well selected gift card sent with the right message serves the purpose perfectly.

Change of preferences

Gift items have also changed with time. Jewellery, cash and household items are considered passé these days. There is a new range of innovative and customized articles, which are being preferred today. Gift card voucher for health spas and salons, movie tickets, sponsored honeymoon packages and healthcare visits are some of the new services, which are slowly and steadily gaining traction in India. Gift card vouchers are ideal to avail these services than cash.