Shuja Jashanmal, Group CEO, Jashanmal National Company, on gift cards as the future of gifting
Shuja Jashanmal, Group CEO, Jashanmal National Company, on the rise of gift cards, which have emerged as a modern, flexible, and thoughtful alternative to traditional presents, is reshaping the future of gifting.
The rise of gift cards, which have emerged as a modern, flexible, and thoughtful alternative to traditional presents, is reshaping the future of gifting. Gone are the days of hastily wrapped presents that risk missing the mark. Today, gift cards are stepping into the spotlight, offering a blend of convenience, personalization, and sustainability that resonate with modern consumers. With advancements in AI and blockchain, tomorrow’s gift cards will be more immersive, secure, and deeply personalized. Imagine a card that curates products based on the browsing history of a recipient - a frontier we are actively exploring. These innovations are redefining how we think about gifting in the digital age. For UAE retailers, this shift is more than a trend; it is a strategic opportunity to redefine customer loyalty and drive growth in a fiercely competitive market.
While gift cards have long remained a staple of the retail ecosystem, offering customers a convenient gifting solution and ensuring enhanced cash flow to retailers, brands must now rethink traditional gifting models to cater to the evolving needs of customers.
As part of the UAE’s Vision 2030, the country is embracing digital transformation, with the retail sector playing a key role in driving this change. This is further accelerating the adoption of gift cards across the region. Leading brands are contributing to this shift by introducing innovative gift card solutions that combine convenience, luxury, and personalization. Some notable examples include premium gift solutions offered in stylish packaging, reloadable options, and extended validity periods, making them ideal for special occasions and corporate gifting. These gifting solutions allow recipients to choose from a wide range of premium products across categories like fashion, home decor, travel, and electronics. By aligning with the UAE’s digital and sustainability goals, gift cards are not only enhancing the gifting experience but also catering to the growing demand for eco-conscious solutions.
According to GlobeNewswire, the UAE gift card market is expected to grow at a CAGR of 10.2%, reaching USD 3.3 billion by 2029. This surge is driven by digital transformation and increasing demand for convenient gifting options. In addition, the government’s push for a cashless economy through initiatives, such as the Dubai Cashless Agenda, is also contributing to this shift. Businesses are leveraging gift cards for employee rewards and client retention, while a majority of tourists opt for them as souvenirs.
Retailers in the region are adopting these trends, leveraging gift cards to enhance overall consumer engagement and maximize sales, particularly during peak shopping periods like Ramadan. During this time, when consumers seek thoughtful gifts, gift cards emerge as a practical solution. Retailers have reported a 50% increase in gift card sales during this period due to the convenience offered by them. Businesses are now integrating gift cards into loyalty programs that reward repeat usage. These solutions remain a popular choice for seasonal and personal occasions like Eid or weddings.
Innovation and personalization are key drivers shaping the future of the gift card market in the UAE. Brands now offer recipients unparalleled flexibility, with gift cards widely accepted across various stores and even countries. Retailers are not only offering in-house gift cards but also providing gift solutions from franchise partners, allowing customers to choose from a wide range of their favorite brands of choice. Beyond generic plastic cards, luxury brands are introducing personalized options, such as gift cards with tailored messages and customizable designs, adding a thoughtful touch to the gifting experience.
As the UAE continues to embrace sustainability and digitization, the gift card market is poised for sustained growth. Retailers and brands that prioritize convenience, personalization, and innovation will stay ahead of the curve.
The UAE’s gift card revolution is more than a market shift; it is emerging as a cultural reset. With retailers in the UAE adapting to this trend, they are not only enhancing the shopping experience but also aligning with the country’s vision for a digital and eco-conscious future. Looking forward, gift cards will continue to gain prominence as an essential weapon in the strategic arsenal for retailers vying for customer loyalty amidst the UAE’s intensifying competitive landscape. The future of gifting lies in blending tradition with innovation, ensuring tomorrow’s gift cards feel as thoughtful as a handwritten note, yet as cutting-edge as the metaverse.
