DUBLIN: The "Saudi Arabia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in Saudi Arabia is set to grow over the forecast period to record a CAGR of 7.4% during 2024-2028. Saudi Arabia's gift card market is forecast to increase from US$1.5 billion in 2023 to reach US$2.2 billion by 2028.
Key Developments in the Gift Card Sector in the Saudi Arabia
Strategic Partnerships
- eXtra and YouGotaGift Collaboration: In September 2023, eXtra, a major consumer electronics and home appliance retailer, partnered with YouGotaGift to launch a branded gift card program. This initiative leverages the YOUProcess solution across all eXtra stores, providing customers convenient gifting options and expanding digital gift card availability.
- FNP.ae and Merit Incentives Partnership: In October 2023, FNP.ae, a leading online gifting platform, collaborated with Merit Incentives to introduce FNP gift cards in Saudi Arabia, Qatar, and the UAE. This partnership aims to diversify offerings and meet the rising demand for digital gift cards, strengthening market competitiveness.
- Emerging Online Gifting Platforms: A notable trend of online gifting platforms entering the gift card sector is driving innovation and competition. These platforms are expanding their services to include gift cards, catering to the growing consumer preference for digital gifting.
These partnerships underscore the ongoing evolution of the gift card market in Saudi Arabia, which is driven by collaborations between retailers and digital payment providers and increasing demand for convenient gifting solutions.
Regulatory Changes
There have been no major new regulations or policies specifically targeting the gift card sector in Saudi Arabia over the last six months. However, the existing regulatory framework continues to influence the market:
- Compliance with Regulatory Requirements: Various regulatory and compliance obligations govern the gift card and incentive card market in Saudi Arabia. Industry participants must adhere to these regulations to avoid potential legal issues and operate within the legal framework.
- Central Bank of Saudi Arabia (SAMA) Oversight: The Central Bank of Saudi Arabia (SAMA) oversees the financial sector, including gift card issuance and use. SAMA's regulations aim to ensure financial stability, indirectly impacting the gift card market.
- Consumer Protection Laws: Saudi Arabia's consumer protection laws govern transactions, including gift card purchases and redemptions. They ensure that consumers are treated fairly and have recourse in case of disputes or unfair practices.
- Taxation Policies: Gift card transactions in Saudi Arabia are subject to applicable taxes, such as value-added tax (VAT). Taxation policies may influence the pricing and adoption of gift cards.
While no major policy changes have been made recently, the government's ongoing efforts to regulate the financial sector and protect consumer rights continue to shape the operational environment for gift card providers and retailers in Saudi Arabia.
The gift card market in 2023 was driven a wide range of factors, which supported growth across retail and corporate segments. The primary factors included growth of ecommerce, increased adoption to incentivize employees working remotely, digital gifting, and initiatives undertaken by government, hospitality, and travel industries to revive growth.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
Companies Featured
- eXtra
- YouGotaGift
- FNP
- Merit Incentives
- Savola Group
- Landmark Group
- Saudi Co For Hardware (SACO)
- Inter Ikea Systems BV
- Jarir Marketing Co
- United Electronics Co
- Inditex, Industria de Diseno Textil SA
Report Scope
Total Spend on Gifts in Saudi Arabia
- By Consumer Segment (Retail and Corporate)
- By Product Categories (13 Segments)
- By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in Saudi Arabia
- Gross Load Value
- Transaction Value
- Unused Value
- Average Value Per Transaction
- Transaction Volume
- Average Value of Card Purchased
- Number of Cards
Gift Card Market Size by Consumer Segment in Saudi Arabia
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Saudi Arabia
- By Retail Consumer
- By Retail Purchase Occasion
- By Corporate Consumer
- By Corporate Purchase Occasion
- By Company Size
Gift Card Market Size by Retail Consumer in Saudi Arabia
- By Functional Attribute
- By Occasion
- Festivals & Special Celebration Days
- Milestone Celebration
- Self-Use
- Other
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Saudi Arabia
- Consumer Purchase Behaviour
- Gift Card Buyer by Age Group
- Gift Card Buyer by Income Level
- Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in Saudi Arabia
- By Functional Attribute
- By Occasion
- Employee Incentive
- Sales Incentive
- Consumer Incentive
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Saudi Arabia
- Food & Beverage
- Health, Wellness & Beauty
- Apparel, Footwear & Accessories
- Books & Media Products
- Consumer Electronics
- Restaurants & Bars
- Toys, Kids, and Babies
- Jewelry
- Sporting Goods
- Home & Kitchen Accessories & Appliances
- Travel
- Entertainment & Gaming
- Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in Saudi Arabia
- Ecommerce & Department Stores
- Restaurants & Bars
- Supermarket, Hypermarket, Convenience Store
- Entertainment & Gaming
- Specialty Stores
- Health & Wellness
- Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in Saudi Arabia
- Gift Card Online Sales
- Gift Card Offline Sales
- 1st Party Sales
- 3rd Party Sales
- Sales Uplift
Reasons to buy
- Comprehensive comprehension of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for gift and incentive cards in Saudi Arabia.
- Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.
- Learn about the attitudes and behaviours of consumers in Saudi Arabia: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.
- Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.
- Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales.
For more information about this report visit https://www.researchandmarkets.com/r/1s10fk
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Fonte: Business Wire