Why People Prefer Gift Cards Over Other Presents

GFGC - Prefer Gift Cards Over Other Presents

The Good Food Gift Card can be used for any occasion, season, and cuisine. Find the perfect location to use the gift card here.

Throughout the year and especially by the end of it, buying presents can be an exhausting ordeal. Frantic shopping centres and queues can drive anyone crazy – not to mention all that time spent looking for a present that you think the other person would like (with no guarantee).

It can be truly exhausting to spend hours racking your brain to think of the perfect present. There's a magical solution to this problem, though: gift cards.

Many Aussies turn to gift cards as a way of simplifying their lives. And the ones that receive the gift card? They're loving it just as much!

The gift card market

According to the Australian Government Treasury, the size of the Australian gift card market is estimated at between $1.5 billion and $2.5 billion annually. In a survey of 1,000 consumers, conducted by the Australian National Retailers Association (ANRA), 20% of respondents indicated that the bulk of their Christmas spending would be on gift cards – an increase from previous years that suggests gift cards are becoming a more popular choice at Christmas.

A separate online survey of 1,295 adults conducted by Retail Decisions Australia found that 62% of respondents had received a gift card in the last year, while 69% had purchased one.

People prefer gift cards over presents

GFGC - Prefer Gift Cards Over Other Presents (2)

Some people feel that buying a gift card isn't as personal or dedicated as choosing the perfect physical gift for someone.

But this couldn't be further from the truth.

A gift card is one of the most thoughtful and personal presents there is – it's saying to that someone that you appreciate them, and you want to gift them something. Something they'll like, something they'll use, and something that will give them the freedom to choose. Is it easier buying a gift card than spending hours in the shopping centre frantically trying to choose something? Absolutely. But does that mean a gift card is any less of a present? Absolutely not.

People appreciate what a gift card means, and relish in the chance to go and pick out what they really want to spend their card on.

But don't take our word for it… Statistics also back claims that gift cards are now one of the most preferred gifts of recipients. Results from a First Data Corp. survey revealed that 93% of respondents would prefer a gift card valued at $25 over an item valued at $25. And what was even more interesting was that almost 50% also said that they would rather get a $25 gift card rather than an item valued at $50.

Research by global data and insights company Pureprofile found that the top gift that women would like to receive (aside from money) is a gift card (34%), followed by clothing (27%), and jewellery and fragrance (both at 24%).

Another survey, conducted by Swagbucks, revealed that 76% of gift card recipients don't feel that such a gift is impersonal, because the one gifting still needs to know the kind of thing the recipient likes to spend money on, where they like to shop, or where they like to dine.

More importantly, a gift card can gift something you can't otherwise give: an experience they'll never forget, or a dinner out in a nice restaurant – something they wouldn't normally do or spend money on.

GFGC - Prefer Gift Cards Over Other Presents

Why gift cards are a better present

There are plenty of benefits to giving gift cards, not least of which is avoiding receiving an unwanted present. Anyone who's ever given someone a gift they already own or seen one of their gifts 'regifted' can attest to the importance of this. Not to mention the waste of resources and money on items that end up discarded or collecting dust in the back of a cupboard!

Instead, a gift card gives your recipient the opportunity to take a little time to decide what they really want to spend it on (and who doesn't love spending free money?), and then enjoy receiving your gift all over again when they make their decision. And if you're gifting an experience, your present will be remembered forever.

Give the gift of freedom

Gift cards are personable and thoughtful presents that have tonnes of benefits, for both the person who buys the gift card and the person who receives the present.

Got a couple of foodies in your life, or just someone who deserves to treat themself? A Good Food Gift Card is the perfect gift.

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Mireille Kilgour

Mireille Kilgour

Mireille Kilgour has been an entrepreneur for 35 years in the hospitality sector. French born, she has been an accomplished business owner and operator for a number of Sydney venues. Leading the industry with high profile institutions such as Lamrock Café Bondi, she has endless passion for the industry, and now has the pleasure of supporting restaurants to fill their tables with the new Good Food Gift Card program.