b2b news - New research from Archstone Consulting shows that gift cards will continue to remain popular this Christmas season, but their values will be smaller and their use more practical.
Gift card purchases and redemptions are beginning to reflect the hard times many consumers are experiencing. Although the number of gift cards purchased rose in the six months to April 2009, average value was down 11.5% from $52 to $46.
Also the majority of gift cards purchased were pre-paid gift cards that can be used for practical items instead frivolities. Demand for practical gift cards is becoming so great that cards that can even be used toward medical services are in development.
Marketers are turning gift cards themselves into promotions, offering free $10 - $50 cards to consumers to encourage spending in their stores and on their websites, According to the Wall Street Journal.
Dave Sievers, Principal and the Consumer Products and Retail Practice lead at Archstone Consulting said, "Given that the average card price has already trended down by 11.5% and the general strain on consumer buying, Archstone Consulting anticipates that the 2009 Holiday Gift Card market will range between staying flat at $24.9 billion and decreasing by 5%."
