The year 2020, as trying and unpredictable as it has been, has shed light on social constructs and the way Canadian citizens, businesses and governments interact with one another. As is usually the case in this peaceful and wealthy nation, a theme of mutual aid has surfaced and those with resources have rallied to help the less fortunate. Between March and August 2020, Gift Card Warehouse (GCW) observed a rise in gift card volume for the purpose of assisting those in need of essential goods and services during the COVID-19 outbreak. As the pandemic continues to shape societal behaviours and anchor them into the collective consciousness, it’s no surprise that the global gift card market is poised to grow by USD 527.11 billion from 2020 to 2024, progressing at an increase of over 14% during the forecast period.
Gift Card Market - Growth Factors
Growth of the e-commerce sector and the increasing popularity of the gifting culture are the major factors driving the trends. As consumers adapt to social distancing measures and known health risks for certain segments of the population, the way people help others and shop has morphed. If gift cards were a well-established commodity before, they are so now, more than ever.
Gift Cards to Secure Essential Goods and Services
Businesses deemed essential services like grocery stores and pharmacies have been critical to society during these times. Gift cards for these types of establishments have been a lifeline for many Canadian households who otherwise would have struggled to make ends meet during this financially arduous period. Retail e-commerce sales have also soared to an all-time high, with Statistics Canada recording numbers that have more than doubled as compared to last year. Aid groups have adapted and equipped their clients with gift cards from both the well-known e-commerce giants, as well as from other retailers who are traditionally brick and mortar but who are now offering e-commerce experiences, allowing people to acquire basic necessities from the safety of their own homes.
How Aid Groups Have Adapted
Companies, government bodies, food banks, social, family and child services as well as charity groups have rapidly utilized this technology to support those under their purview. As COVID-19 has forced many of these organizations to reduce their business hours and staffing capacities to protect their teams and clientele, gift cards have become a practical alternative to physical, more traditional donations and disbursements. They also present a simple option for management as their procurement and delivery are conveniently orchestrated by gift card distributors, who understand the industry and can make educated recommendations based on market trends.
As uncertainty linked to COVID-19 keeps looming, gift cards will remain a top choice for helping those in need. GCW is committed to providing access to essential services gift cards and will gladly support organizations in their scoping and acquisition process. Contact our experts today to craft a custom solution, suited for your unique clientele. We’ll all get through this together!