Market Trends of Middle East Gift Card and Incentive Card Industry
This section covers the major market trends shaping the Middle East Gift Card & Incentive Card Market according to our research experts:
Rise in E-Commerce in the Middle East Region
The strong growth in the e-commerce sector primarily supported the overall gift card industry during 2020, a trend expected to continue over the forecast period. Increasing smartphone penetration and consumers' inclination towards online shopping have positively impacted the e-commerce sector. In Middle-East, the growth in the e-commerce market is one of the factors driving gift card market growth in the country. With growing online sales the spending on gift cards is also likely to increase in the country. Corporates and individual customers have both identified various ways to use Gift cards and Incentive cards over the last several months; from traditional incentives and rewards to sending Eidiya or just helping the ones in need during the pandemic.
COVID-19 Boosted the Adaptation of Digitalization in Middle East
Customers have adapted very quickly to the 'new normal' by redeeming or purchasing gift cards. Due to the closure of restaurants and bars, customers spent heavily on groceries and other supermarket purchases; As work from home and online schooling became the new norm, people had to reorganize their houses in a short span of time; New devices, gaming, and streaming options were, of course, popular; fashion and lifestyle are still listed in the top categories with a clear shift on beauty products. Some categories were seriously impacted: travel, experiences, transportation, jewelry, and F&B. However, in the second part of the year, it can be seen that staycations and experiences are catching up again. The UAE's ex-pat population immediately found the benefits of sending digital gift cards to their relatives in their country of origin with a click of a button and without any fees associated with it. In conclusion, customers were highly adaptive and willing to use gift cards across countries, currencies, and brands.
