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Kenya Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast (2015-2024) - Covid-19 Update Q2 2020
  • ID: 4751518
  • Report
  • June 2020
  • Region: Kenya
  • 120 pages
  • PayNXT360
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Report Description

This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by Covid-19 outbreak on gift card industry in Kenya.

Historically, the gift card market in Kenya has recorded a steady growth with a CAGR of 21.6% during 2015-2019. However, According to the Q2 2020 Global Gift Card Survey, gift card market in Kenya is expected to be impacted across retail and corporate segments due to disruption caused by Covid-19 outbreak.

Though growth of gift card industry will be impacted due to pandemic, there are certain segments such as self-use which will gain significant market share. Adoption of e-Gift cards is also expected to increase significantly over the next 4-6 quarters. There are interesting trends emerging across various segments, which are expected to fundamentally reshape gift card industry dynamics.

Despite near-term challenges, medium to long term growth story of gift cards in Kenya remains strong. The gift card industry in Kenya will continue to grow over the forecast period and is expected to record a CAGR of 14.9% during 2020-2024. The gift card market in the country will increase from US$ 260.2 million in 2019 to reach US$ 434.8 million by 2024.

The gift card market in Kenya recorded substantial growth in the last few years. As one of East Africa’s largest economies, technological advancements in the payment industry widened the scope of gift card market in Kenya. The market growth has been primarily backed by the rising adoption of gift cards by the millennials and Gen Z consumers, expansion of the retail sector, and growing inclination towards cryptocurrencies.

According to the Kenyan Communications Authority (CA), in 2019, internet penetration was at 90% in Kenya. The increasing demand for internet is growing due to rising smartphone penetration. This trend has supported the country’s leading mobile money service M-Pesa, which has more than 25 million users in Kenya. It is noteworthy to mention that, the rising mobile money services allowed 83% of the Kenyans to access to formal financial services in 2019. Therefore, the rising adoption of alternative payment services such as mobile wallets is expected to create scope for the digital gift cards.

Kenya’s economic expansion during 2019, also supported the country’s retail sector, with supermarkets leading the sector. The growing retail sector is also creating demand for gift cards. For instance, multinational retailer such as, Carrefour offers a wide range of gift cards in Kenya. These gift cards can be recharged and available in Carrefour stores. Moreover, leading domestic shopping malls have been launching and investing in gift card programs. These gift cards, which are also available in digital format allows users to redeem at stores within the mall .

In Kenya, demand for cryptocurrencies are increasing. According to the Blockchain Association of Kenya, during 2018-2019, the total number of Bitcoin transactions measured at US$1.5 million. This trend is alternatively widening the growth of the gift cards. This is due to the ease of buying gift cards with cash and trading them for cryptocurrencies, without revealing the user’s identity.

This report provides a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics in Kenya. With over 200 KPIs at country level, this report provides comprehensive understanding of gift and incentive card market dynamics.

The report includes raw data along with structured dashboards, charts, and tables in an interactive Excel format.

Below is a summary of country level trend analyses covered across gift card segments:
  • Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
  • Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate – SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card (e-gift card), and market share by retail sectors.
  • Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
  • Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories – consumer incentive card, employee incentive card, and sales/partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business).
  • Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail – festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards –consumer incentive card, employee incentive card, and sales/partner incentive card). The report also includes digital gift card adoption by company size.
  • Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
  • Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level.
  • Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
  • Market share by retailer: Provides market share of closed loop gift cards by key retailers in Kenya.
  • Distribution channel analysis: Provides market share by distribution channel – online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).

Total Spend on Gifts in Kenya
  • 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 Kenya
  • 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 Kenya
  • Retail Consumer
  • Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Kenya
  • 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 Kenya
  • 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 Kenya
  • 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 Kenya
  • By Functional Attribute
  • By Occasion
  • Employee Incentive
  • Sales Incentive
  • Consumer Incentive
  • By Scale of Business
  • Budget Allocation Trend for 2020
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Kenya
  • 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 Kenya
  • 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 Kenya
  • Gift Card Online Sales
  • Gift Card Offline Sales
  • 1st Party Sales
  • 3rd Party Sales
  • Sales Uplift
Reasons to Buy
  • In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2014-2023) for gift cards and incentive cards in Kenya.
  • Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
  • Get insights into consumer attitude and behaviour in Kenya: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
  • Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
  • Distribution channel insights: Understand gift cards sales dynamics by channels – online vs offline and by 1st party vs 3rd party sales.