Our Views on the Market
How Buoyant is the current UK Gift Card market?
It is reported that 29% of people in the UK purchased a Gift card in 2007 and nearly half the UK population received a Gift card at some point.
***DATA BASED ON A STUDY CONDUCTED IN OCTOBER 2007 SPONSORED BY THE VA
These figures are still quite low relative to North American markets who have reported a contrasting 76.6% rate of purchase in the US and a 56.8% level of purchase in Canada.
Predictions for 2008
The UK Gift card market will undoubtedly experience yet another substantial incline in both sales revenue and card volumes.
Why?
Firstly, many retail giants including Marks & Spencer have recently confirmed that they are to move over to Gift Cards in favour of the traditional voucher to enhance sales, brand awareness, purchase frequency etc. The va predicts that the UK markets can expect modest growth of around 25% growth based on consumer forecasting.
We at Nitecrest believe that due to third party distribution through gift card centres and the introduction to POS display stands at many leading UK retailers, it is possible to be far greater than predictions suggest. And with the relatively new introduction to Pre-Paid Gift banking cards who knows what 2008 could bring.
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