Forget e-cards, gift cards are the new flavour this festive season

Indians have spent Rs 1,800 crore in the last 12 months on gift cards alone

Consider this: Indians spent Rs 1,800 crore in the last 12 months on gift cards alone. By gift cards the reference here is to cards that look much like debit or credit cards, but act as gift vouchers. That is, you can use them against a purchase you make at the retail outlet that has issued the gift card to you. So if I am a movie buff, for instance, I can get a gift card from say PVR and swipe it every time I purchase a movie ticket or choose to buy popcorn or cold-drink at the multiplex. I can also actually gift the card to anybody I choose to, which is why the name.

Unlike loyalty programmes, where the consumer also uses a card but the scope of operating it is wider, with gift cards, the scope is limited both in terms of the time frame and where it can be used.

Even then the concept is gaining ground in India. Why? Because of the ease of use. Gift vouchers, which are typically issued during the festive period or by corporates wanting to reward their employees or partners are cumbersome to carry with the consumer having to tender the exact amount if he or she is making a purchase. Not so with gift cards. They are easy to use, but there is no danger they will get lost or damaged.

Sensing the opportunity therefore that gift cards present, retailers, according to QwikCilver, a Bangalore-based company that provides the technology to operate these cards, are increasingly opting to issue these during the festive period.

QwikCilver is working with 45 retailers currently including names such as Titan, Madura Garments and Shopper's Stop to support their gift card programmes, say company executives.

According to experts, gift card programmes this festive are likely to be rolled out in over 4,000 stores, across 300 towns in India. In addition to retail demand, corporate houses are also jumping onto the bandwagon as part of their 'smart' HR policies.