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Gift Card Buying Trends Increasing in Hispanic Market October 23, 2008

Posted by jyu in Uncategorized.

Gift card buying trends continue to increase each year. The gift card industry has been taking off for several years and each year shows a steady increase in number of cards purchased and the average amount spent per gift card. Also, surveys show that more people are eager to receive a gift card, which was once seen as an impersonal gift, than ever before. Over 50% surveyed said they wanted gift cards this season according to the National Retail Federation.

The gift card buying trends are also increasing rapidly in the Hispanic market. According to Comdata Stored Value Solutions, Hispanics, on average, received gift cards with the highest average value, $71. Comparatively to African-Americans and Caucasians, this is considerably higher with African-Americans averaging $60 and Caucasians receiving an average of $41.

“Our survey shows us that Hispanics are enthusiastic consumers of gift cards,” said Bob Skiba executive vice president and general managers of CSVS. “Hispanics represent an exciting growth area for retailers.”

The study also shows that 40% of Hispanics report buying gift cards for personal use, compared to 30% of Caucasians and 24% of African Americans. Another interesting note is that 69% of Hispanics surveyed reported spending more than the amount on the gift card. Hispanics also give gift cards to children more than Caucasians and African Americans for the purposes of rewarding their children as well as teaching them the value of money. Instead of giving children their weekly allowance, parents can use gift cards to reward their kids on monthly basis and feel a sense of responsibility by have a prepaid credit card, which looks the exact same as mom and dads’ bank card.

The numbers are certainly showing a very excited market for gift cards and specifically a rapid increase in buying from the Hispanic market. With gift card purchasing still climbing, these numbers will certainly continue increase.



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