Commentary

Gifts Cards A Phenom in The Hispanic Market

Gifts Cards A Phenom in The Hispanic Market

According to Comdata Stored Value Solutions fifth annual gift card survey of US consumers, Hispanics received gift cards with the highest average value, $71, compared to $41 for Caucasians and $60 for African-Americans. In addition, 26% of Hispanics surveyed report giving gift cards to children as a budgeting tool or in lieu of an allowance.

Other survey highlights related to Hispanics:

  • 40% of Hispanics report buying cards for themselves vs. 30% of Caucasians and 24% of African-Americans
  • 31% of Hispanics report purchasing gift cards at gift card malls, which provide a variety of card options at one location, compared with 26% of Caucasians and 33% of African-Americans
  • Hispanics add their own money to increase their purchasing power. 69% of those surveyed say they spend more than the amount of the card, compared with 52% of Caucasians and 44% of African-Americans
  • 38% of Hispanics buy cards via the internet, 31% at gift card malls and 6% at charity fundraisers and other events

And, considering gift cards among the entire population for the 2007 holiday season, the study includes these highlights:

  • The average gift card purchaser expects to spend $203 on gift cards for the 2007 holiday season, up from $186 in 2006
  • 38% of those surveyed who have never purchased a gift card are very or somewhat likely to purchase gifts cards this holiday season, representing an 81% increase in new card users
  • 53% of card users often or always spend more than the amount originally loaded onto their cards, and are most likely to redeem their cards over two visits, increasing store traffic
  • 85% purchase gift cards because they want the recipient to be able to select their own gift, while 57% don't know what to buy
  • Department stores are the most popular place to purchase a card, followed by clothing and book stores, then restaurants

The children's gift card market was measured last year, and showed that:

  • One-third of all gift cards purchased last year were purchased for children or teens
  • 4% of cards purchased were for children under the age of five
  • Of those who have purchased gift cards for children, 35% were the child's parents, followed by 30% who are aunts or uncles

For more information from Comdata, please visit here.

Next story loading loading..