Dublin, Sept. 15, 2021 (GLOBE NEWSWIRE) -- The "United Arab Emirates 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 Global Gift Card Survey Q2 2021, around 65% of the consumers have been shopping online due to COVID-19. Convenience of contactless payment, as well as speed and safety of online payments were quoted as top reasons for preferring online shopping and payment. This trend is likely to support growth of digital gift cards.
The UAE gift card market has grown rapidly over the recent years as customers increasingly prefer gift cards over conventional gifts. Also, the growth of e-commerce has opened new horizons for the digital gift card market. The e-commerce market is further expected to grow as consumers continue to shop online and as merchants recognize the need for online presence.
Moreover, due to the pandemic, there has been a shift to online shopping. This trend is expected to continue in the long term as consumers prefer more flexible payment options available during online shopping. Retailers are capitalizing on this trend and offering digital gift cards to attract customers and drive revenues.
Gift cards are also being used as payment instrument. For instance, Amazon.ae partnered with du and Etisalat to enable customers recharge their phone using debit, credit or Amazon.ae gift cards.
Moreover, mall based gift cards are also seeing increase in traction. For instance, Landmark Group launched Shukran Gift Card in UAE and several other Middle Eastern countries in November 2020. The card which has 12 month validity can be redeemed at Landmark Group retail stores and F & B, hospitality experiences. The cards can also be used for corporate gifting and is customizable for bulk purchases.
Earlier, in February 2020, Lulu, UAE-based retail group's real estate arm, Line Investments & Property introduced Laka Gift Card that allows customers to shop at outlets across eight shopping malls in Abu Dhabi and Al Ain. Laka 4U gift card is offered in US$14 and US$27 (Dh50 and Dh100) denominations. This move was part of the strategy to increase footfall to these malls and improve customer experience.
The gift card market is competitive with the presence of large number of international players. Recently in August 2020, Amaten, Japan's digital gift card marketplace established its overseas operations in Dubai, UAE. Also, Amazon.ae offers gift cards which are valid for 10 years and in both physical and virtual formats. The e-gift cards are available for upto AED 6,000, while the physical cards are available in various denominations from AED 50 up to AED 1500. The growing presence of international players will further intensify competition in the market.
Entertainment based gift cards are gaining popularity in UAE backed by increasing smartphone penetration as well as the rising popularity of over-the-top (OTT) media or internet streaming services. The OTT traffic has further accelerated in COVID times as individuals are confined to their houses and are spending more time on leisure activities.
In October 2020, Mastercard partnered with Amazon to offer Amazon Prime members in UAE a 20% cashback in form of a gift card during prime day on October 13-14, when paid with Mastercard. Also, customers registering for Mastercard Platinum, World and World Elite Mastercard debit and credit cards issued by banks in the UAE, will be provided an annual Amazon Prime membership. Also, Netflix offers gift card in UAE which can be used to pay for subscriptions. Rising demand for online home entertainment platforms is creating huge opportunity for entertainment-based gift cards as a tool to attract more consumers.
According to the Q2 2021 Global Gift Card Survey, gift card industry in United Arab Emirates is expected to grow by 14.9% on annual basis to reach US$ 1424.9 million in 2021. Despite near-term challenges in 2021, medium to long term growth story of gift cards in United Arab Emirates remains strong.
The gift card industry in United Arab Emirates 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 12.2% during 2021-2025. The gift card market in the country will increase from US$ 1239.9 million in 2020 to reach US$ 2257.1 million by 2025.
Scope
Total Spend on Gifts in United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- 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 United Arab Emirates
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Carrefour SA
- Consumer Co-operative Union (CCU)
- Landmark Group
- Emke Group
- Life Healthcare Group
- Damas International Ltd
- T Choithram & Sons
- Sharaf DG LLC
- Inter Ikea Systems BV
For more information about this report visit https://www.researchandmarkets.com/r/w8frpk
