SOCIAL
GIFTING
30
September
2012
-­‐
Louis
Hatzis
-­‐
louishatzis@tsoonami.com

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.

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.

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)
Wrapp.com
(2)
Starbucks
(3)

US.
Gi1
Card
Spend
Sources:
CEB
TowerGroup

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.

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

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).

Amazon
granted
patent
on
Electronic
Gi1ing
(May
2012)
GeekWire:
hhp://bit.ly/QCvJ6N
US
Patent
Office:
hhp://1.usa.gov/W377EV

Wrapp.com
A
Swedish
company
that
has
raised
$10.5
million.
AcGve
in
8
countries,
including
the
US.

Karma
(getkarma.com)
Acquired
by
Facebook
earlier
this
year.

Facebook
Facebook
launches
Gi>s
Se0
28,
2012.

Boomerang
(rang.com)
Backed
by
Lightbank,
the
investment
fund
created
by
Groupon
founders
Eric
Letofsky
and
Brad
Keywell.

Treater.com
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.

WanUul.com
raised
$5.5
million
in
Series
A
funding
for
their
customized
gi>
plavorm,
which
acts
as
a
personalized
gi>
card

Givable.co
An
australian
based
start-­‐up.
Formely
known
as
Gri>less.

Gi1socially.com
Allows
gi>
drives:
many
people
collecGvely
buy
a
gi>
for
a
friend.

Gi1sproject.com
Acquired
by
eBay.
Offers
a
white
label
soluGon
for
social
gi>ing
for
online
retailers,
marketplaces
and
gi>
stores.

Shopycat
(facebook.com/shopycat)
A
service
by
Walmart.
Finds
and
analyzes
your
friends'
likes
and
dislikes
and
suggests
gi>s.
Its
a
Facebook
App.

Socialgi1.com
Allows
users
to
set-­‐up
gi>
drives.

Gy1.com
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.

Jifi<.com
A
gi>ing
plavorm
that
allows
users
to
spot,
share
and
redeem
gi>s
while
walking
through
their
favorite
stores.

Flikgi1.com
An
Australian
social
gi>ing
service.

Gi1sToFriends.de
A
German
service
that
offers
social
gi>ing
on
and
off
Facebook.

DropGi1s.com
A
German
service
with
a
presence
in
11
countries,
including
the
US.
Its
a
venture
by
the
Samwer
brothers.

Gi1ly.com
Lets
users
send
any
kind
of
gi>
to
a
friend
or
family
member,
without
having
to
go
through
a
merchant.

Gi1Rocket.com
A
2011
Y
Combinator
grad,
is
a
simple
P2P
digital
gi>ing
service
that
lets
users
send
and
receive
digital
gi>
cards
via
email.

CashStar.com
Digital
eGi>
Card
for
naGonal
&
local
restaurants
and
retail
stores.

PayPool.nl
A
Dutch
social
gi>ing
app.

THANK
YOU!
Louis
Hatzis
-­‐
louishatzis@tsoonami.com
-­‐
twiher.com/louishatzis
-­‐
facebook.com/louishatzis
-­‐
linkedin.com/in/louishatzis