Will Branded Gift Card Sales' Rise?

The Network Branded Prepaid Card Association seems to think so.

In their latest survey, the association discovered that more people will purchase gift cards this holiday season.

“The survey revealed that branded gift cards will remain popular because they are practical gifts that help consumers stay on budget and provide flexibility, security and choice for the recipient," the association wrote in a news release.

Of the 1,000 adults surveyed, 52% reported that they plan to give more practical gifts this year. Of those who had given or received a branded gift card in the past, 17% percent plan to give more branded gift cards this year, while 43% plan to give the same number.

Is this true? Will consumers give more practical gifts? And will they be given by way of gift cards? I can't speak for others, but personally, I know I won't be making any practical purchases this holiday season.

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Replies to This Discussion

Permalink Reply by Victoria Fierson on November 19, 2008 at 11:47am: Well Mary, it looks like there are others who share your position on practical gift giving....

TowerGroup research projects that overall gift card sales will decline 9% for the 2008 holiday season, due to lack of consumer confidence in retailer-sponsored gift card products and the shift to financial institution branded products Payments News reports.

TowerGroup projects a 14.4% decline in private label (closed loop) gift cards. Interestingly, financial institution-branded cards will grow slightly at 5.6%. Overall consumer confidence is still low, but it may be a positive indicator that consumers are gravitating towards bank offered products. Maybe a positive step in the right direction, though a small one.; ▶ Reply to This

Permalink Reply by Mary Wisniewski on November 21, 2008 at 2:25pm: I hear you, Victoria. But, then again, I'm not practical.

Financial institution-branded cards do seem to be the hot-ticket item.; ▶ Reply to This

Permalink Reply by Joann Lucas on November 24, 2008 at 11:25am: There is this chain email going around (I've received it twice already) telling the recipient NOT to buy gift cards this season. It lists about 30 or so retailers who are reportedly closing branches after the first of the year and says these retailers are trying to get consumers to purchase gift cards for stores that are closing so the gift cards will be worthless...based on the number of people I know who believe these crazy kinds of emails I would say gift cards sales might go down this year. :); ▶ Reply to This

Permalink Reply by Mary Wisniewski on December 1, 2008 at 9:36am: Coinstar is partnering up with Overstock.com in an effort to give gift certificate sales a boom.

Consumers pay no coin-counting fee when converting their change into an Overstock.com eCertificate.

Coinstar also offers eCertificates for other nationally branded gift cards.; ▶ Reply to This

Permalink Reply by Victoria Fierson on December 5, 2008 at 9:32am: American Express launched a new Logo Gift Card for Businesses to give to employees and clients.

The American Express-branded gift card offers businesses customized options like adding their own logos to the cards . Card amounts range from $25 - $3,000 and can be redeemed at variety of merchants and restaurants that accept American Express.

Read the release here.; ▶ Reply to This