More consumers are turning to e-gift cards to celebrate special occasions and extend donations following the coronavirus outbreak, according to new data.

Middle East-based YouGotaGift said on Sunday that consumers and corporates in Saudi Arabia have also turned to digital gifting during the holy month of Ramadan, with demand for e-gift cards rising by 35 percent.

“We have seen almost 80 percent rise in online searches compared to last year and the number keeps growing month on month with March and April 2020 showing over 35 percent increase than February 2020,” Husain Makiya, CEO of YouGotaGift, said.

The trend is fueled by changing consumption patterns in light of the coronavirus pandemic. With the authorities encouraging the public to observe social distancing or stay at home to avoid contracting the virus, more and more consumers are opting for the digital option to gift friends and loved ones.

According to the Middle East e-gift card distribution company, there is also a growing trend among corporates and businesses to use digital gift cards to incentivise, reward and motivate employees, customers and trade partners.

Coronavirus cases around the world continues to rise, climbing to more than 3.5 million as of Sunday.

The number of people who are working from home or experiencing economic difficulties due to job losses and salary cuts is increasing. There are now thousands of families in need of assistance to acquire daily essentials.

Amid the growing economic toll of coronavirus, YouGotaGift has also seen strong growth in the use of e-gift cards for humanitarian purposes or help those in need.

Blackhawk Network, a global payment provider, announced in April that e-gift sales were up 44 percent year-on-year, while e-commerce sales increased 43 percent. 

Gift card e-commerce sales also grew 54 percent on Blackhawk’s partner channels.

A study conducted by Blackhawk among more than 1,000 consumers found that consumers are interested in using gift cards and e-gifts for charity or kindness during the crisis. 

(Reporting by Gerard Aoun; editing by Cleofe Maceda)

(gerard.aoun@refinitiv.com)

#COVID19 #RAMADAN #GIFTS #SAUDI

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.


© ZAWYA 2020