Sweden’s GDP expanded by 4.3% in Q3’20 after a slump in Q2’20 due to coronavirus outbreak. However, for full year 2020, the economy is expected to shrink impacting consumer confidence. The economy is likely to recover in 2021 which would have a positive impact on consumer spending and consequently the gift card market.
Though growth of gift card market has been impacted in 2020 due to the COVID crisis, the market is set to grow as retail and corporate customer increase spending on gift cards over the forecast period. Due to COVID-19, there has been shift in demand from brick and mortar retail to e-commerce. The growth in e-commerce will be owing to digitally savvy shoppers which will have a positive impact on the gift card industry in the coming years. Moreover, in October 2020, Amazon extended its presence in Sweden with its new e-commerce site Amazon.se, which could further enhance the e-commerce market in the country.
The growing demand from the millennials and Gen Z population for online gifting options such as e-gift cards is changing the entire dynamics of the gifting industry. People are moving away from the traditional gifting options such as greeting cards or edibles to digital gift cards.
Maintaining long term relationships especially with millennials and Gen Z consumers is becoming a rising concern for retailers. As a result, gift cards are becoming core to retailer’s strategy to gain market share. Retailers are focusing on offering reloadable gift cards and loyalty card programs to engage consumers by giving them periodical credits, adding bonus points, and insisting on reloading. This strategy could help retailers in gaining profits.
Another emerging trend that will boost the growth momentum of the gift card market is the ability to buy bitcoins with gift cards in Sweden.
According to PayNXT360’s Q4 2020 Global Gift Card Survey, gift card industry in Sweden is expected to grow by 0.0% on annual basis to reach US$ 1384.6 million in 2021. Despite near-term challenges in 2021, medium to long term growth story of gift cards in Sweden remains strong. The gift card industry in Sweden 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 0.0% during 2021-2025. The gift card market in the country will increase from US$ 1275.1 million in 2020 to reach US$ 1792.0 million by 2025.
This report from PayNXT360 provides a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics in Sweden. With over 200 KPIs at country level, this report provides comprehensive understanding of gift and incentive card market dynamics.
The report includes raw data along with structured dashboards, charts, and tables in an interactive Excel format.
Below is a summary of country level trend analyses covered across gift card segments:
• Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
• Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate – SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card (e-gift card), and market share by retail sectors.
• Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
• Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories – consumer incentive card, employee incentive card, and sales / partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business)
• Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail – festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards –consumer incentive card, employee incentive card, and sales / partner incentive card). The report also includes digital gift card adoption by company size.
• Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
• Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level.
• Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
• Distribution channel analysis: Provides market share by distribution channel – online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).
