Hispanic Gift Card use soars 33%.
October 13, 2007
Retailers are seeing an increase in both the cash value amount and use of gift cards among Hispanics.
According to Comdata Stored Value Solutions’ (CSVS) fifth annual gift card survey, Hispanics received gift cards with the highest average value among all ethnic groups at an average balance of $71, compared to $41 for Caucasians and $60 for African-Americans. The Hispanic total was a 33 percent increase over last year.
The study also revealed that 26 percent of Hispanics surveyed report giving gift cards to children as a budgeting tool or in lieu of an allowance.
“Our survey shows us that Hispanics are enthusiastic consumers of gift cards,” said Bob Skiba executive vice president and general managers of CSVS. “Hispanics represent an exciting growth area for retailers.”
Survey highlights include:
— Hispanics are most likely to purchase gift cards for personal use. 40 percent report buying cards for themselves vs. 30 percent of Caucasians and 24 percent of African-Americans.
— 31 percent report purchasing gift cards at gift card malls, which provide a variety of card options at one location.
— Hispanics are most likely to spend more than the value on their cards, adding their own money to increase their purchasing power. 69 percent of those surveyed indicate they spend more than the amount of the card, compared to 52 percent of Caucasians and 44 percent of African-Americans.
— Hispanics are buying cards through several channels: 38 percent from the Internet, 31 percent at gift card malls and 6 percent at charity fundraisers and other events. 90 percent of Hispanics still purchase cards at a specific retailer.
— Hispanics buy cards with higher initial values and are most likely to reload cards. 40 percent buy for themselves and their children vs. 30 percent of Caucasians and 24 percent of African-Americans.
The survey also indicates that many Hispanics like enhanced features and special packaging.
— 24 percent prefer cards that also function as a DVD with music.
— 75 percent appreciate a card that is presented in unusual packaging.
The survey results are based on 800 Internet surveys collected during September 12-18, 2007.
For more information at http://www.comdata.com
