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Social Gifting

  1.  SOCIAL  GIFTING 30  September  2012  -­‐  Louis  Hatzis  -­‐
  2.      Social  Gi1ing  -­‐  What  is  it? • Social  gi>ing  is  the  latest  trend  in  retail. • People  on  Facebook  and  other  social  networks  buy  each  other  gi>s. • People  can  give  away  a  gi>  using  a  smartphone. • Friends  buy  each  other  gi>  cards  from  parGcipaGng  retailers  either   individually  or  by  teaming  up,  which  they  can  store  on  their  mobile   devices  and  redeem  either  online  or  inside  physical  stores.          
  3.      Social  Gi1ing  is  the  intersec<on  of  3  major  trends • Gi>  cards:  Big  brands  like  them  because  they  don't  "cheapen"  the   brand/product  in  the  mind  of  consumers  (contrary  to  daily  deals).   • Social  networks:  People  love  to  share  and  let  others  know,  and  giving  is   social  by  nature • Mobile:  Our  mobile  phones  are  with  us  all  the  way  through  our  path  to   the  purchase  counter.        
  4.      Some  Stats • e-­‐gi>ing  accounted  just  for  $1  billion  of  the  $100  billion  gi>  card   industry  last  year.  Of  that  $1  billion,  social  gi>ing  made  up  only  about   5%  or  $50  million.  (1) • Since  November  2011  more  than  165,000  acGve  users  have  given  over   1.4  million  gi>  cards  that  can  be  redeemed  in  some  50  major  retail   stores  across  Europe.  (2) • Starbucks  is  expecGng  social  gi>ing  to  take  up  as  much  as  one  fi>h  of  all   its  gi>ing  revenues  in  the  very  near  future.  (3)        Sources:  CEB  TowerGroup  (1)  (2)    Starbucks  (3)
  5.      US.  Gi1  Card  Spend        Sources:  CEB  TowerGroup
  6.      Why  do  Retailers  Like  it? • Costs  retailers  almost  nothing!  All  the  markeGng  cost  is  handled  by  the   social  gi>ing  company.  No  cards  have  to  be  printed  because  it’s  all   handled  digitally. • Gives  brick-­‐and-­‐mortar  retailers  new  &  more  efficient  ways  to  drive   sales  into  stores  without  diluGng  their  brands. • Provides  retailers  an  opportunity  to  reach  out  to  their  target  buyers  and   promote  their  brands  at  almost  no  extra  cost. • Offers  a  social  markeGng  acquisiGon  channel  that  increases  the   frequency  of  engagement  with  exisGng  customers,  and  ulGmately   increases  traffic  to  their  physical  store  locaGons.   • In  conclusion,  with  Social  gi>ing  there  is  lihle  markeGng  costs  for   retailers,  and  customers  end  up  buying  more  once  their  inside  the  store.        
  7.      Retailers  Survey   • 65  percent  of  retailers  believe  eGi>s  are  a  successful  tool  in  building   loyalty  and  establishing  online  relaGonships  with  customers. • Nearly  half  of  the  retailers  surveyed  plan  to  improve  the  mobile   shopping  experience  for  their  customers  in  the  next  year. • 60  percent  of  retail  partners  agreed  that  it  is  important  for  eGi>  Card   delivery  to  be  instant. • 45  percent  of  retail  partners  surveyed  agreed  that  a  combinaGon  of   personalized  video,  text,  photos  and  mulGple  design  opGons  are   important  features  for  eGi>.          CashStar's  Annual  Digital  Gi>ing  Retailer  Roundtable,  July  2012
  8.      Group  Buying  vs.  Social  Gi1ing • Group  Buying  made  waves  by  providing  online  deals  to  customers  from   various  retailers.  It  rode  on  the  euphoria  around  “gemng  something  for   free.” • Group  Buying  brought  new  business  to  many  retailers.   • Some  retailers  saw  a  decrease  in  online  raGngs  due  to  these  deals,   while  others  did  not  see  repeat  business  materialize.   • In  some  cases,  retailers  lost  money.  For  example  a  bakery  lost  $20,000   because  they  did  not  plan  for  the  surge  in  customers  and  had  to  hire   addiGonal  help  to  manage  the  increase  in  demand. • In  contract,  Social  gi>ing,  does  not  place  pressure  on  retailers  in  the   same  way  (Note:  The  broad  idea  of  Wrapp’s  marke6ng  scheme  was   a;ained  from  Groupon.  However,  Wrapp  does  not  charge  the  retailer   unless  the  transac6on  has  been  completed).      
  9.      Amazon  granted  patent  on  Electronic  Gi1ing  (May  2012)     GeekWire:  hhp:// US  Patent  Office:  hhp://
  10.     A  Swedish  company  that  has  raised  $10.5  million.  AcGve  in  8  countries,   including  the  US.
  11.      Karma  (     Acquired  by  Facebook  earlier  this  year.
  12.      Facebook     Facebook  launches  Gi>s  Se0  28,  2012.
  13.      Boomerang  (     Backed  by  Lightbank,  the  investment  fund  created  by  Groupon  founders   Eric  Letofsky  and  Brad  Keywell.
  14.     Raised  $2.5  million.  Users  can  instantly  send  gi>s  like  a  coffee,  cupcake  or   a  cocktail  to  friends  on  their  mobile  devices  in  mere  seconds.
  15.     raised  $5.5  million  in  Series  A  funding  for  their  customized  gi>  plavorm,   which  acts  as  a  personalized  gi>  card
  16.     An  australian  based  start-­‐up.  Formely  known  as  Gri>less.
  17. Allows  gi>  drives:  many  people  collecGvely  buy  a  gi>  for  a  friend.
  18. Acquired  by  eBay.  Offers  a  white  label  soluGon  for  social  gi>ing  for  online   retailers,  marketplaces  and  gi>  stores.
  19.      Shopycat  ( A  service  by  Walmart.  Finds  and  analyzes  your  friends'  likes  and  dislikes   and  suggests  gi>s.  Its  a  Facebook  App.
  20. Allows  users  to  set-­‐up  gi>  drives.
  21. Launched  at  TC  Disrupt  2012.  Lets  users  buy,  save,  redeem  and  share  gi>   cards  using  an  iPhone.  Integrated  with  Apple’s  Passbook  app  in  iOS  6.
  22.      Jifi<.com        A  gi>ing  plavorm  that  allows  users  to  spot,  share  and  redeem  gi>s   while  walking  through  their  favorite  stores.
  23. An  Australian  social  gi>ing  service.
  24. A  German  service  that  offers  social  gi>ing  on  and  off  Facebook.
  25. A  German  service  with  a  presence  in  11  countries,  including  the  US.  Its  a   venture  by  the  Samwer  brothers.
  26. Lets  users  send  any  kind  of  gi>  to  a  friend  or  family  member,  without   having  to  go  through  a  merchant.
  27. A  2011  Y  Combinator  grad,  is  a  simple  P2P  digital  gi>ing  service  that  lets   users  send  and  receive  digital  gi>  cards  via  email.
  28. Digital  eGi>  Card  for  naGonal  &  local  restaurants  and  retail  stores.
  29. A  Dutch  social  gi>ing  app.
  30.  THANK  YOU! Louis  Hatzis  -­‐  -­‐  -­‐  -­‐