Market Trends of Canada Gift Card and Incentive Card Industry
This section covers the major market trends shaping the Canada Gift Card & Incentive Card Market according to our research experts:
Strong Growth in the E-Commerce Market is Driving the Gift Card Industry
The rapid expansion in the e-commerce sector is one of the key drivers fueling the growth of the gift card market in Canada. On the back of the protracted lockdown restriction and expanding internet and smartphone penetration rate in the nation, the number of customers who switched to online shopping climbed dramatically over the last four to eight quarters.
Young Canadian consumers who purchase mostly on their mobile devices will dominate the online retail business. Notably, over the next four to eight quarters, this expansion in the e-commerce sector will promote the expansion of digital gift cards as well as the entire Canadian gift card market.
Digital gift cards are very popular in the hospitality and spa industry. Many restaurants offer gift cards to their loyal customers as an appreciation for their loyalty. As the effects of the pandemic recede, many small businesses have come forward with a plan to offer gift cards to their customers to get back on track and cover up the pending targets as much as possible. Also, digital gift cards bring in instant cash flow when offered to regular customers.
Greater Adoption of E-Gift Cards is Driving the Market
The e-Gift Card category has shown tremendous growth in recent times, as enterprises and corporates are taking the e-gifting route to engage with their employees and partners to minimize contact in the wake of COVID-19.
Digital gift cards might be one of the most underutilized growth tools in eCommerce. Not only do they require minimal upfront risk, but they can also help boost your brand awareness, drive sales, and build customer loyalty.
Online gift cards are among the most popular choices for holiday shoppers. But the global pandemic has accelerated their sales even beyond seasonal periods.
