Blackhawk Network has revealed that 81% of Australians plan to give their loved ones a gift card instead of a physical gift to combat potential delays in shipping and stock shortages.
With the COVID-19 global pandemic induced global supply chain issues threatening to put a damper on Christmas sales, new research from Blackhawk Network offers insights.
Blackhawk Network’s Christmas gifting survey
Of those buying gift cards, 83% plan to purchase cards that can be used at multiple retailers.
This flexibility gives the gift recipient more options to choose exactly the gifts they want, with 22% of Australian respondents noting that freedom as their prime motivator for giving gift cards and 70% finding the process of returning or exchanging gifts annoying.
The findings are part of the global 2021 Holiday Shopping Forecast that surveyed 11,000 consumers around the globe with 250 respondents from across Australia.
The report found that consumers have shifted their perspective on gift giving, providing retailers with new opportunities to connect with customers.
Marc Cheah, Blackhawk Network’s APAC Senior Marketing Director expounded further.
“The pandemic restrictions, lockdowns and supply issues have led to the giving of gift cards increasing in popularity and coming to Christmas, the trend continues to grow.”
“Since the beginning of the pandemic, more Australians are opting for the convenience and freedom of choice that gift cards offer for both the purchaser and gift recipient.”
“41% of consumers plan to buy more gift cards this year as compared to previous years.”
“They are planning to spend 30% more on gift cards, with an average spend of $206 per person pushing the value of their gift card spend to over 50% of their total gift purchases.”
“For online and in-store retailers, this growth in the appeal of gift cards among consumers presents an opportunity to grow revenue from the sale of gift cards and their redemption after Christmas, plus building customer engagement, brand awareness and advocacy.”
Blackhawk Network is offering gift cards
Among the other findings, 70% of shoppers spend more than the value of the gift card upon redemption with consumers spending an average 40% more than the card’s value.
This is especially beneficial in the post Christmas period when retail sales in Australia traditionally slow down, helping businesses to maintain their revenue into the new year.
The impact of COVID-19 has also seen Australian shoppers become far more inclined to use contact-less digital payment methods for purchasing or redeeming gift cards with the survey noting that 85% of respondents found using a digital wallet made shopping easier.
Furthermore, 69% of Australian consumers shop more frequently at stores that accept digital payments and 54% are likely to spend more if they can use digital payments.
Blackhawk Network is therefore offering Australian consumers The Ultimate gift card range which is readily available at many major supermarket retailers across Australia.