The impact of Gift Cards in the Cosmetics and Perfumery sector in 2024

Overview of gift cards in the beauty and perfumery sector

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In the cosmetics and perfumery sector, gift cards continue to play a crucial role as a flexible and highly appreciated gifting solution for consumers.

With an average value remaining stable at €58, gift cards reflect purchasing habits in this industry, where average basket sizes tend to be lower compared to other sectors.

The most popular denominations remain unchanged, with €50, €30, and €100 being the preferred amounts. Additionally, 15% of redeemed gift cards generate an additional payment averaging €23, a slight decline from 2023 (when 20% of cards were supplemented). This may be due to the sector's purchase structure, where consumers often fully utilize their card balance without exceeding it.

A positive trend has emerged: the expiration rate of gift cards has decreased to 9% (compared to 12% in 2023), reflecting improved activation and consumer engagement. However, the average value of expired cards has significantly increased, reaching €34, up from €18 in 2023.

Finally, digitalization is accelerating: 89% of sales now involve e-gift cards, while only 11% are physical cards, confirming the growing importance of digital solutions in consumer purchasing behaviors.

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Seasonal impacts and the potential of Gift Cards

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Gift cards continue to play a significant role in beauty retail and e-commerce, particularly during key shopping periods.

• 41% of annual sales occur in December, with a peak between December 20 and 24.
• 42% of May sales coincide with Mother’s Day, marking a significant increase in this period.
• 34% of November sales are linked to Black Friday.
• 23% of February sales are driven by Valentine’s Day.

These insights highlight the need for a well-structured marketing strategy aligned with key seasonal trends.

Another notable trend is the decline in the value of free gift cards (issued for promotional purposes or as customer service compensation), which dropped from €112 in 2023 to €77 in 2024. These cards generate an average additional spend of €19, accounting for 17% of the total basket size.

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The power of B2B Gift Cards for Cosmetics and Perfumery brands

The B2B gift card service segment remains a key growth driver for brands in the sector.

• The average number of gift cards per order has increased slightly, from 120 to 129 in 2024.
• The face value per card remains stable at €69, with an average order value of €4,500.
• 87% of transactions are completed via bank transfer, while 11% are paid by credit card, mainly for smaller orders.
• Discount pressure is increasing, with 32% of orders now including a discount, though the average discount remains stable at 10%.
• 28% of B2B sales are concentrated around Christmas, reinforcing the strong seasonality of the sector.

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Gift Card Distribution via Third-Party Partners

Distribution through third-party networks (such as employee benefits programs, loyalty programs, and marketplaces) is gaining traction:

• The average distributed gift card value increased from €49 in 2023 to €61 in 2024.
• 57% of total gift card flows come from employee benefits programs, which use them as an employee perk.
• Nearly one-third of sales originate from company-funded loyalty programs.
• 84% of gift cards spent via third-party distributors result in additional payments, averaging €12 per transaction for a total basket of €75.
• Commissions in this channel range between 13% and 16%, making it attractive but highly competitive.

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In summary…

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Key Takeaways…

Gift cards in the cosmetics and perfumery sector continue to solidify their position as a strategic growth driver in 2024.

• The average gift card value remains stable at €58, while digitalization accelerates, with 89% of sales coming from e-gift cards.
• The expiration rate has decreased to 9%, but the average value of expired cards has risen to €34.
• Seasonality remains strong, with sales peaking in December (41%), May (42%) for Mother’s Day, and November (34%) for Black Friday.
• B2B and third-party distribution channels are expanding, providing brands with diversification opportunities and revenue stability.

Strategic Priorities for Brands:

✅ Encourage additional spending to maximize basket size.
✅ Develop year-round strategies to balance sales beyond peak seasons.
✅ Strengthen digital presence, particularly via social media and e-commerce.
✅ Optimize distribution channels, balancing direct sales with third-party partnerships.
✅ Maximize post-redemption conversion, encouraging customers to spend more than their card’s face value.

By leveraging these strategic levers, brands can enhance the impact of gift cards on revenue growth while meeting evolving consumer expectations for flexibility and personalization.

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