Digital Gifting: Trends and Bends
The new trend is setting in!
When we think of expensive gifts, the first thing that comes to mind is that they should be precious or heavy, like a small diamond ring or a big box full of surprises. However, as the trend shifts post-pandemic, so does the gifting style. Honestly, gifting can sometimes be tricky, as the other person might not like your gift and then ask for the payment slip to exchange the article, as we have all experienced. As a result, digital gift cards can save you from embarrassment and time waste. Further, if you are busy or can’t attend a wedding or party, you can simply forward the gift card with an apology.
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A digital gift includes any type of gift that you cannot simply grab in your hands or wrap around. With the passing time, the digital items are increasing, which may include digital cards, e-gift vouchers, online subscriptions, purchasing objects in gaming apps, sending paid stickers to your favourite influencers, or simply buying some online courses.
A Short Timeline
The idea of gifting vouchers dates back to the 1930s, when the trend of issuing gift certificates became popular in American department stores. However, in the 1970s, it gained large popularity when the famous food chain McDonald’s began giving away gift certificates for celebrating Christmas. These cards are still available today in the form of ‘arch cards’ and can be redeemed both physically and digitally. Despite this, the video rental chain “Blockbuster” would still always remain at the top of the race as the marketing champion of gift cards, as the blueprinting of the concept initially began in 1994 and was officially launched in 1995 for customers to avail of this off-the-chart offer.
Brands and their Market Shares
According to the National Retail Federation (NRF), sales of digital cards for gifting have surged by an unprecedented 200 percent. Digital gift card sales rose to approximately $15 billion. Therefore, it is evident from this report that e-cards are profitable for both consumers and sellers.
Famous brands and outlets have all introduced digital cards. Brands like Amazon, Nike, and Apple have all launched this scheme to meet the needs of their customers. For instance, Nike gift cards can be emailed or mailed to a postal address as per your choice, but the benefit of emailing is that the receiver won’t have to wait and can enjoy the online shopping spree as soon as the card is downloaded. Similarly, one can redeem Apple gift cards at the Apple Store, Apple TV, and Apple Book Store collectively. Furthermore, Netflix has also stepped into the online gifting business venture, and you can simply buy subscriptions for your friends or family members by taking advantage of this offer while enjoying the perks of sitting anywhere in the world.
The Future of Digital Gift Cards
In the near future, as all payments shift to digital mode, retailers can benefit by easily gathering data on gifters and recipients of the gift cards and can stay updated about consumers spending patterns. The data algorithm can further assist companies build unassailable gifting systems according to the personalised preferences of people.
