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Social Gifting
Social gifting is the latest trend in retail where people use social networks like Facebook to buy gifts for each other. It combines the trends of gift cards, social networks, and mobile devices. Though still a small portion of the gift card industry, social gifting is growing rapidly. Retailers benefit from social gifting because it drives in-store sales at little marketing cost to the retailers. Major companies like Facebook, Amazon, and Starbucks are entering the social gifting space.
Social Gifting
- 1. SOCIAL GIFTING 30 September 2012 -‐ Louis Hatzis -‐ louishatzis@tsoonami.com
- 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) Wrapp.com (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://bit.ly/QCvJ6N US Patent Office: hhp://1.usa.gov/W377EV
- 10. Wrapp.com A Swedish company that has raised $10.5 million. AcGve in 8 countries, including the US.
- 11. Karma (getkarma.com) Acquired by Facebook earlier this year.
- 12. Facebook Facebook launches Gi>s Se0 28, 2012.
- 13. Boomerang (rang.com) Backed by Lightbank, the investment fund created by Groupon founders Eric Letofsky and Brad Keywell.
- 14. 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.
- 15. WanUul.com raised $5.5 million in Series A funding for their customized gi> plavorm, which acts as a personalized gi> card
- 16. Givable.co An australian based start-‐up. Formely known as Gri>less.
- 17. Gi1socially.com Allows gi> drives: many people collecGvely buy a gi> for a friend.
- 18. Gi1sproject.com Acquired by eBay. Offers a white label soluGon for social gi>ing for online retailers, marketplaces and gi> stores.
- 19. Shopycat (facebook.com/shopycat) A service by Walmart. Finds and analyzes your friends' likes and dislikes and suggests gi>s. Its a Facebook App.
- 20. Socialgi1.com Allows users to set-‐up gi> drives.
- 21. 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.
- 22. Jifi<.com A gi>ing plavorm that allows users to spot, share and redeem gi>s while walking through their favorite stores.
- 23. Flikgi1.com An Australian social gi>ing service.
- 24. Gi1sToFriends.de A German service that offers social gi>ing on and off Facebook.
- 25. DropGi1s.com A German service with a presence in 11 countries, including the US. Its a venture by the Samwer brothers.
- 26. Gi1ly.com Lets users send any kind of gi> to a friend or family member, without having to go through a merchant.
- 27. 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.
- 28. CashStar.com Digital eGi> Card for naGonal & local restaurants and retail stores.
- 29. PayPool.nl A Dutch social gi>ing app.
- 30. THANK YOU! Louis Hatzis -‐ louishatzis@tsoonami.com -‐ twiher.com/louishatzis -‐ facebook.com/louishatzis -‐ linkedin.com/in/louishatzis