Supply chain crisis, gift cards become the "rescue product" for the European and American holidays?

Faced with severe shortages of goods , retailers are considering gift cards as an alternative to holiday gifts .

Affected by the supply chain, some large companies choose to charter ships to transport goods or start promotional activities in advance, but for most companies, such methods are too costly and obviously not feasible.

Gift cards have always been popular in the U.S. , with an estimated market value of $160 billion, according to retail analytics firm Incisiv. The National Retail Federation says gift cards have been the most popular gift for nearly 15 years. This holiday season, gift cards have become even more important as shipping delays and labor shortages loom, according to industry associations and service providers. As a response , retailers are increasingly considering offering gift cards on their websites , as well as personalized offers to replace out-of-stock gifts .

"We are seeing increased efforts to ensure gift card inventory is secured early to meet increased demand," said a spokesperson for the Retail Gift Card Association. " The expected increase in demand is driven in part by consumers purchasing gift cards because of shortages of desired products or gifts . "

Gift cards are No. 2 on the list of top shopping categories for 2021, behind only apparel, with 54% of holiday shoppers planning to buy them, according to a survey by coupon site RetailMeNot. They're attractive to shoppers 65 and older (75% of the demographic plans to buy) and those aged 55 to 64 (64%) . That number drops to 50% among those aged 35 to 44 and 44% among those aged 25 to 34.

Theresa McEndree, global marketing director at Blackhawk Network, a prepaid gift card and payment provider that works with retailers like Amazon, Apple and Nordstrom, said some types of gift cards are outperforming others. “The trend we’re seeing is branded gift cards, which are leading all the gift card categories ,” she said . These include gift cards that are bundled with brands for special occasions, like graduations, or for specific groups of people.

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Supply Chain