The coronavirus pandemic has disrupted the global supply chain significantly. As the demand for gift items is expected to rise this holiday season, manufacturers and retailers are struggling to manage their product availability. Globally, logistics activities are mainly hampered due to covid restrictions. Container ships are either clogging ports, awaiting cargo, or are unable to get past the gridlock to unload their goods.
These combined factors have created a supply chain crisis; however, it is expected to be a great opportunity for the global gift card industry. During this period, many leading companies experienced financial losses because of supply chain issues. Notably, Apple lost US$6 billion in sales during its fourth quarter of the financial year. With Apple and other global businesses across industry verticals slashing production, giving gift cards has become a fail-safe way to ensure that people are able to gift their loved ones with presents on Christmas.
Apart from the global supply chain crisis, the gift card industry is also expected to benefit from the boost in the spending power of consumers. For instance,
PayNXT360’s Q2 2021 global survey revealed that shoppers are ready to spend more than 40% of their holiday gifting budget on gift cards.Moreover, the survey also revealed that around 80% of the consumers prefer e-gift cards over physical cards for this festive season.
PayNXT360 projects that the e-gift cards market is expected to record strong growth during this holiday season. The market growth is expected to be driven by the comfort and convenience it offers consumers in the global supply chain crisis. Additionally, gift card shopping might also be spurred by increasing online transactions. Mobile wallets are expected to play an essential role in gift cards market growth.
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