Gift cards: an indispensable asset in the fashion and accessories sector
In a highly competitive global environment, the fashion and accessories sector is constantly evolving. Brands face increasing challenges to differentiate themselves and captivate consumers in a landscape saturated with options. Among the effective strategies adopted, the gift card emerges as a particularly powerful commercial tool. Far more than just a present, it offers fashion and accessories brands the strategic ability to meet the varied expectations of consumers while boosting sales and strengthening brand loyalty.
The e-commerce revolution and the future of physical stores in the fashion industry
A necessary coexistence between online and physical commerce
E-commerce has transformed the fashion industry, radically changing the way consumers shop for clothing and accessories. Giants like Amazon Fashion and Zalando have democratized access to a multitude of brands and styles, setting new standards in terms of convenience and delivery speed. In 2020, Amazon Fashion exceeded $40 billion in revenue, illustrating the impact of e-commerce in fashion. In the face of this rise, physical stores must justify their existence. H&M has met this challenge by creating concept stores integrating cafes, co-working spaces, and art exhibitions, thus offering a unique experience beyond mere commercial transactions. According to Deloitte, 67% of European consumers prefer to buy their clothes in-store if the customer experience is enriching. This underscores the importance of the quality of the in-store experience to attract and retain customers. Brands must innovate, adopt technologies such as virtual fittings, and develop mobile applications to facilitate the shopping journey. They must also focus on social and environmental engagement, with sustainable collections and a reduced carbon footprint, thereby attracting customers concerned about the impact of their purchases.
Adaptation and innovation in a specific, evolving market
The ready-to-wear sector is undergoing a transformation with the arrival of new players like SHEIN, which has reshaped the market with its attractive prices. In 2021, SHEIN achieved sales of $16 billion thanks to an optimized supply chain and the use of data to anticipate trends, attracting a young clientele seeking trendy products at affordable prices. Faced with this competition, traditional brands like Naf Naf, Morgan, The Kooples, and Celio have experienced financial difficulties, partly due to their inability to fully exploit the opportunities offered by gift card programs. These programs, as a tool for acquisition and loyalty, can stimulate sales and encourage repeat purchases, especially on platforms like TikTok where influencers use them to promote brands. To adapt to this evolution, French and European brands must improve their online presence and in-store customer experience, while considering new economic models that integrate sustainability and meet the expectations of modern consumers. Gift cards, as a marketing tool and branded currency, play a crucial role in this strategy.
Why have a gift card as a brand in the fashion and accessories sector?
Gift card programs have become a cornerstone of marketing strategies for ready-to-wear brands because they contribute to both sales growth and strengthening loyalty. Initially designed as a simple gift service, these programs have evolved into sophisticated marketing tools, incorporating digital features and partnerships with influencers. This historical evolution reflects how brands have adapted their strategies.
Increasing sales and customer loyalty
In France, 62% of consumers have purchased a gift card, with an average of 3.7 cards per household. The average face value of B2C gift cards is around €101, although this figure has recently dropped to €85 due to economic conditions. This growing adoption demonstrates the importance of gift card programs in attracting and retaining customers. Gift cards allow customers to choose their items, increasing their satisfaction and the likelihood of returning for more purchases. In 2023, they accounted for approximately 7% of total sales in the fashion sector in France, a slight increase from the previous year.
Generating additional sales and increasing traffic
Gift card programs are effective in generating additional sales. About 50% of gift card recipients visit the store or the brand’s website when they initially did not plan to do so, generating extra traffic. Additionally, most consumers spend 1.4 times the amount of the gift card. Nearly 70% of gift cards are used within three months of receipt, often associated with additional payments averaging €57 in B2C and €65 in B2B, thereby increasing retailers' revenue. In 2023, the volume of gift card sales in France reached over €8 billion, with an annual growth rate of 8%.
Optimizing the customer experience and gathering valuable data
The transition to digital gift cards has enhanced their popularity. Digital gift cards offer increased flexibility and ease of use, allowing retailers to collect valuable data on consumer preferences and conduct more targeted marketing campaigns. This shift to digital is crucial to meet the expectations of modern consumers and align with an omnichannel strategy, integrating gift cards into the overall customer experience, whether online or in-store. This technological evolution enables brands to remain competitive and meet new demands for simplicity and speed.
Why is the gift card an ideal tool for second-hand fashion services?
In the current context where sustainable fashion is gaining popularity, buying second-hand clothing is becoming an increasingly attractive option for consumers. Gift cards can play a significant role in this trend by encouraging the purchase of second-hand products and thus contributing to the circularity of fashion.
Gift cards: a strategic lever to encourage the purchase of sustainable second-hand fashion
Entering the second-hand market meets the growing consumer demand for lower prices and reduced environmental impact (-80%). This ecological concern has been reinforced by scandals involving various brands. For brands, second-hand sales increase the profit margin per product by nearly 40% and constitute a new customer acquisition channel, with 60% of second-hand buyers being new or reactivated customers.
For example, online platforms specializing in second-hand fashion, such as ThredUp or Vestiaire Collective, have seen their popularity explode in recent years.
Facilitating transactions and attracting new customers in the second-hand fashion universe
The second-hand market in France is booming, with an estimated value of €14 billion in 2023, representing 8.6% of online sales. Platforms like Vinted and Leboncoin dominate this sector. Many traditional brands, such as Zara and Petit Bateau, have launched their own resale platforms to capitalize on this trend.
A strategic tool to encourage loyalty and support sustainability
The growing popularity of second-hand offers economic and ecological benefits, reducing waste and extending the life of products. Gift cards facilitate transactions by offering compensation in the form of credit to be used in-store or online, thus strengthening customer loyalty and encouraging sustainability. For brands, these programs incentivize consumers to recycle their clothing while continuing to shop at the same store.
In 2024, the second-hand fashion market in France continues to grow significantly. It is estimated at around €7 billion, marking a notable increase from previous years. In 2022, this market was already valued at €6 billion, with strong annual growth since 2018, when it represented €1 billion.
Gift cards as a lever for second-hand fashion: Encouraging additional purchases and promoting recycling
Gift cards are ideal for the second-hand market, offering a practical and incentivizing solution for both consumers and retailers. When a consumer sells a used product, they receive a gift card as compensation, which can be used for future purchases in-store or online. This approach encourages the recycling of items while providing tangible value for new purchases. For brands, this fosters loyalty by encouraging customers to return and generates additional revenue, as consumers often spend more than the initial value of the gift card.Les cartes cadeaux comme levier pour la mode de seconde main : Encourager les achats supplémentaires et favoriser le recyclage
Digital revolution: The rise of gift cards on mobile applications
Mobile innovation as a strategic lever to stand out in the saturated gift card market in fashion
In the fashion sector, where competition is intense, using mobile applications for the distribution and use of gift cards allows brands to stand out (30% of digital gift card holders register them on their wallet). Mobile applications offer a personalized shopping experience, essential for attracting and retaining customers. By leveraging mobile features such as gift card management, push notifications, and spending tracking, brands can enhance customer engagement and maximize their revenue.
Growth of mobile transactions and opportunities provided by push notifications for gift cards
Mobile transactions related to gift cards increased by 30% in 2020, representing over $100 billion in revenue. 60% of consumers regularly use a mobile application for shopping. Mobile wallets enable push notifications, offering a new communication channel for brands and more precise tracking of cardholders' spending.
Selling gift cards in the fashion and accessories sector through various distributors
Gift cards offer brands a simple way to penetrate new markets, particularly the professional market. There are two ways to achieve this: direct sales of gift card batches to professionals, or through distributors such as interCSE solutions, incentive programs, loyalty programs, etc. Fashion brands have a great opportunity since there is high demand from distributors in this sector.
Expansion of gift cards in loyalty and interCSE programs
Gift cards in the fashion and accessories sector are experiencing strong growth, primarily through interCSE (Social and Economic Committee) programs. For example, Galeries Lafayette offers its gift cards through these programs, allowing employees to convert their salary allocations into gift cards. By using multiple interCSE solutions, the brand reaches thousands of CSEs and millions of employees. Other fashion brands integrate their gift cards into the loyalty programs of banks and insurance companies, offering cardholders the opportunity to convert their loyalty points into gift cards to update their wardrobes. Cashback programs also allow the conversion of rewards into gift cards. Finally, ready-to-wear brands can extend their presence on various open portals such as marketplaces (Ma carte cadeau, Fnac-Darty, Amazon, etc.), thereby increasing their visibility and sales opportunities.
Maximizing the impact of gift cards: strategies around integration, adaptability, and aggregation
To remain competitive and quickly penetrate distribution networks, an integrated approach is essential. This includes using APIs for seamless integration with sales platforms, offering flexible amounts to meet various consumer needs, and implementing an omnichannel gift card accessible both in-store and online. Additionally, targeted marketing campaigns should be conducted regularly to invigorate the program and maintain customer engagement. Engaging an aggregator is an effective solution to access an established distributor network, simplify accounting and legal aspects, and accelerate the deployment of gift cards in the market. This approach allows for greater responsiveness and flexibility while maximizing the reach and impact of gift card programs.
How to perform with your gift card program in the fashion and accessories sector
To succeed with a gift card program in the fashion sector, it is crucial to implement an effective strategy. This requires establishing a multi-step process.
Smooth ordering and spending process
The ordering and spending process for gift cards should be simple and intuitive. Ensure that customers can purchase gift cards quickly, with personalization options like adding personal messages. Once the card is purchased, the spending process should be frictionless, usable both online and in-store, as practiced by Zara and H&M.
Omnichannel gift cards
Gift cards should be omnichannel, usable both online and in-store, to provide a seamless customer experience. For example, Galeries Lafayette allows the use of its gift cards in its stores and on its online platform. This flexibility enhances the consistency of the customer experience across all sales channels.
Conversion between digital and physical formats
Customers should be able to convert their e-gift cards to physical cards and vice versa, according to their preferences. For instance, an e-card received by email can be converted to a physical card in-store. Registering physical cards in a digital wallet reduces the risk of loss and facilitates their use.
Visibility and marketing campaigns
The visibility of gift cards is crucial. Plan strategic marketing campaigns to reach the target audience at the right time (holidays, birthdays, special events). Use various communication channels, including social media, newsletters, and online advertising. Utilize data analytics to target consumers most likely to purchase gift cards.
Optimizing distribution
Expand the distribution network and optimize the visibility of gift cards at points of sale, especially during key periods. Maximizing the visibility of gift cards as peak times approach (year-end holidays, sales) increases their impact and commercial success.
Leveraging B2B potential
B2B gift card programs offer solutions tailored to business needs. Provide customized ordering pages for professionals, allowing them to order batches of gift cards according to their needs. This approach enables companies to reward their employees, boost sales, and encourage customer loyalty with gift cards suited to their budgets and goals.
Globally, gift cards have evolved into essential strategic tools in the retail sector, particularly for fashion and accessories brands. They offer consumers the freedom to choose from a wide range of products while enabling retailers to boost sales and foster customer loyalty. This trend has strengthened in France, where gift cards play a crucial role in attracting a diverse and demanding clientele, while enhancing the brand image of retailers in a competitive market.
