Gift Focus inc Attire Accessories - July/August 2020

10 SELF GIFTING SOARS AMIDST COVID-19 PANDEMIC UK consumers are increasingly purchasing gift cards to spend on themselves, according to the latest industry research from the Gift Card & Voucher Association (GCVA), in partnership with research and data specialist GlobalData. The Valuing the Gift Card Industry 2020 research, supported by incentives and benefits provider Blackhawk Network, surveyed 2,000 UK consumers and found that self-use, referring to when a gift card is purchased to be used specifically by the purchaser, rather than as a gift, is now among the most prominent drivers of gift card purchasing. Self-use now represents 21.8% of consumer spend on gift cards – a value of just over £1 billion. The rise in self-gifting is said to be reflective of the growing prominence of shoppers purchasing gift cards – typically at discounted rates – through B2B channels, such as employer programmes, rather than waiting to receive them from a friend or family member. Other drivers of this trend include the rise of gift card and loyalty card hybrids, as well as the growth of categories such as video gaming, of which weekly sales have risen by as much as 63% during lockdown. In this industry the gift card is the primary mechanism for online purchases, which is due to gift cards often being seen as a more secure alternative to storing payment details on shared devices. According to the report, the boost may have also been further augmented over the past few weeks by a new gifting trend termed “sunny day gifting”, which refers to when a gift – usually a gift card – is purchased with the intention of being used at a later date once everyday life has returned to normal. This new means of gifting has already been adopted positively throughout the retail and hospitality industries, with consumers across the UK purchasing gift cards for their favourite shops, bars and restaurants, to support these businesses throughout the pandemic. Across the rest of the gift card market, gifting for others, such as friends and family, remains the most popular purchase driver of gift cards, making up 70.8% of the market. The list is rounded out by company bosses purchasing gift cards for staff to recognise loyalty and hard work, which makes up 5.8% of the total market – equating to £270 million. Gail Cohen, director general of the GCVA, commented: “Our gifting habits continue to evolve over time, as evidenced by our latest research which reveals that, sometimes, we just like to treat ourselves, for which gift cards are the perfect solution. “Gift cards’ versatility, despite the name, in fact extends far beyond being used as a gift for others. Whether rewarding key workers, helping to provide free school meals to schools or even just being used to pay for the weekly shop, gift cards have emerged as the safe, flexible payment option of choice throughout this pandemic. Given this, the continued rise of gift cards for self-gifting, at a time when we all need a little lift, comes as little surprise. “We would expect this shift in shopper behaviour to only grow over time, presenting an interesting opportunity for retailers and providers that will need to adapt their offering to cater for this growing trend.” As of the most recent valuation, the gift card industry as a whole is now worth £6.9 billion* – up from the previous estimated value of £6 billion. For more information, visit www.gcva.co.uk BHETA’S RETAILER NETWORKING FORUM PROVOKES INTERESTING INSIGHT INTO BUYING TRENDS, PRODUCT DEVELOPMENT AND PACKAGING BHETA’s latest retailer networking forum, which took place in February, combined a glimpse into Wayfair’s category expansion in the UK with a significant focus on sustainability in both housewares and DIY – in terms of buying trends, product development and packaging. The event featured a presentation from Joseph Bill, associate director of online home décor and housewares retailer, Wayfair. He outlined the company’s significant growth to its current position as premier online home retailer in the UK and its planned expansion into DIY/garden categories, alongside its successful housewares and small domestic appliance offering. Joe presented an insight into Wayfair’s history, growth and philosophy. Of particular interest for both BHETA’s supplier delegates and Wayfair’s European buying team were the categories in which Wayfair wished to expand and its process for engaging with suppliers. Joe outlined the categories, the key criteria for becoming and succeeding as a Wayfair supplier and the process for new or existing partnership. Phil Pond of trend forecaster Scarlet Opus also did a presentation and covered sustainability, eco-friendly goods and the advances in technology, which are leading to manufacturing innovation, material recovery and product design. He also explored the implications for suppliers of increasing consumer frustration at the business world’s perceived slowness to own the challenge of sustainability. Quoting Mark Carney as stating that “firms ignoring climate change will go bankrupt”, Phil looked at the commercial potential of alternative – but commercially available – materials for product and packaging manufacture. For more information about future BHETA events and the benefits of BHETA membership contact BHETA’s member services manager, Nicola Adams on na@bheta.co.uk