Philippines Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update

The gift card industry in the region is expected to grow by 10.8% on annual basis to reach US$0.7 billion in 2024.

The gift card industry in Philippines will continue to grow over the forecast period and is expected to record a CAGR of 9.0% during 2024-2028. Gift card market in the country will increase from US$0.7 billion in 2023 to reach US$1.0 billion by 2028.

Key Developments in the Gift Card Sector in the Philippines

Product Launches and Innovations.

Qwikcilver Partners with Foodpanda to Launch Gift Cards: In December 2023, Qwikcilver, a subsidiary of Pine Labs, partnered with foodpanda to introduce foodpanda Gift Cards. Initially available to corporate customers in Singapore and Thailand, the gift cards are expected to expand across all 11 markets where foodpanda operates, including the Philippines, shortly.

PLDT's TINBO Marketplace Launches Gift Vouchers and Online Shopping Features: In December 2023, PLDT Inc. enhanced its online marketplace, Tindahan ni Bossing (TINBO), which serves overseas Filipino workers (OFWs), by adding gift vouchers and online shopping capabilities. This move aligns with PLDT's strategy to better meet OFWs’ needs and drive higher growth and sales for the platform.

Parañaque City Government Distributes Christmas Gift Cards to 15,000 Individuals with Disabilities: In December 2023, the Parañaque City Government distributed Christmas gift cards valued at ₱2,000 each to 15,000 individuals with disabilities. These cards can be redeemed at grocery stores, restaurants, and other food establishments.

These product launches highlight the growing prominence of gift cards in the Philippines. Government programs, online platforms, and strategic collaborations are contributing to the sector's innovation.

Strategic Partnerships

Qwikcilver and foodpanda Partnership: In December 2023, Qwikcilver, a Pine Labs subsidiary, formed a strategic partnership with Food Panda to launch Food Panda Gift Cards. Initially targeted at corporate customers in Singapore and Thailand, the cards will eventually be rolled out across all 11 Food Panda markets, including the Philippines. This collaboration aims to strengthen Qwikcilver's market presence across the region.

PLDT Inc. and Tindahan ni Bossing (TINBO): In December 2023, PLDT Inc. expanded its Tindahan ni Bossing (TINBO) platform by launching gift vouchers and online shopping features. This initiative focuses on addressing the needs of OFWs while aiming to boost sales and customer engagement. The vouchers are available on major e-commerce platforms like Lazada and Shopee, increasing their accessibility.

Government Disbursement Programs: In December 2023, the Parañaque City Government initiated a gift card disbursement program, providing 15,000 individuals with disabilities with Christmas gift cards worth ₱2,000 each. This initiative not only supports the local community but also underscores the government’s role in encouraging the use of gift cards as a form of financial aid.

These partnerships and initiatives illustrate the growth of the gift card sector in the Philippines, driven by private-public collaborations that enhance the reach and utility of gift cards across various applications.

Regulatory Changes

Government Disbursement Programs: In December 2023, the Parañaque City Government distributed Christmas gift cards valued at ₱2,000 each to 15,000 individuals with disabilities, redeemable at grocery stores, restaurants, and other food establishments. Such initiatives are expected to be replicated by other regional governments in 2024, supporting underserved communities and boosting the growth of the gift card industry in the Philippines in the short to medium term.

DTI Guidelines on Gift Checks, Certificates, and Gift Cards: The Department of Trade and Industry (DTI) in the Philippines has implemented guidelines regulating the issuance, usage, and redemption of gift checks, certificates, or gift cards in line with Republic Act No. 7394 (Consumer Act of the Philippines). Key provisions include:

• Prohibition on expiry dates for gift checks, certificates, or cards issued from July 1, 2012. All such instruments with no expiry dates remain redeemable until fully used.
• Suppliers may refuse to honor gift certificates, checks, or cards only if they are lost due to no supplier fault or so damaged that security and authenticity features cannot be identified.
• Suppliers are mandated to ensure fair consumer transactions, preventing undue deprivation of consumers’ money.

These policies and regulations highlight the Philippine government’s commitment to consumer protection, promoting ethical business practices, and supporting the responsible growth of the gift card industry.

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.

Scope

Total Spend on Gifts in Philippines

• 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 Philippines

• 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 Philippines

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size in Philippines

• 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 Philippines

• 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 Philippines

• 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 Philippines

• 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 Philippines

• 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 Philippines

• 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 Philippines

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

• SM Retail Inc
• Puregold Price Club Inc
• Rustan Group of Cos
• Seven & I Holdings Co Ltd
• Hutchison Whampoa Ltd
• Metro AG
• San Miguel Corp

Reasons to buy

• Comprehensive understanding 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 Philippines.
• 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 Philippines: 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.