Commentary

Better To Give Than To Receive?

According to CEB TowerGroup research, holiday gift cards were predicted to surpass $124 billion in sales last year, with 77% of Americans giving a gift card in the last year says CardCash. But Bizrate Insights survey has found a 15 point gap between desire to give and receive gift cards for the holidays, with 61% of online buyers hoping to receive a gift card, but only 46% who plan on giving gift cards as Holiday gifts.

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 Hayley Silver, VP of Bizrate Insights, says “… this dichotomy… wanting to receive but not to buy gift cards… presents a strong opportunity for retailers to market gift cards as the perfect gift… ”

The study also found some generational differences in attitudes about gift cards. "While every generation has a greater preference to receive gift cards than to give them, Gen Y has the largest gap at 29 points," says Ms. Silver.

Ms. Silver goes on to say that “… recipient demand is strong, but… appears to be a stigma plaguing the purchasing of gift cards… should be surmountable… ”

Percent of Online Buyers Hoping To Receive Gift Card vs. Those Who Plan To Give Gift Cards (% of Cohort)

Cohort

Hope to Receive

Plan to Give

Gen Y

72%

43%

Gen X

66

52

Boomers

54

47

Seniors

42

40

All respondents

61

46

Source: Bizrate Insights, November 2015

Robert Passikoff, founder and president of Brand Keys, predicts that “… gift cards have become as universal as greetings cards… 96% of those surveyed… will buy at least one this year… a $33 billion windfall for the industry… “

Percent of Online Buyers Hoping to Receive Holiday Gift Cards (% By Age)

Cohort/Age

% Hope To Receive

GenY

 

   18-24

76%

   25-29

71

   30-34

70

Gen X

 

   35-39

68

   40-44

66

   45-49

66

Baby Boomers

 

   50-54

59

   55-59

53

   60-64

50

Seniors

 

   65 and over

42

Source: Bizrate Insights, November 2015

 This report is based on 11,067 online buyers, ages 18 and over, in the U.S. and Canada, from data collected between November 1, 2015 and November 8, 2015 via an online survey presented immediately after completing a purchase at one of over 5,000 ecommerce retailers.

For more information about the study, please visit here.

 

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