Transcript Coinstar Inc. - UK Gift Card & Voucher Association

Welcome
Andrew Johnson
Director General
Natasha Toothill
Vice Chairman
Apologies
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Leisure Vouchers - Darren Ziff
Debenhams - Matt Howe
Experience More - Peter Clayton
Comet - Danielle Noakes & Jane Shepard
Globoforce - James McNeil
Tesco - Steve McArdle
Hemingways - Andrew Johnson
Comdata (SVS) – Adrian Boyt
Welcome – New Members
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Days of Your Life – Shaun Powell & Vicki Ling
Membership
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Issuers - 38
Service - 34
Social – 1
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73 total
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Where are we now?
The Gift Voucher & Gift Card
Market Today
Andrew Johnson
Director General
2007 – The Highlights
Feedback from the members included:
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Gift Card Centres / Malls are seen as effective channels and are being more effectively managed.
M&S Launch
Maturing Markets
Number of new issuers and brands with cards
Consolidation of the gift card market
Retailers still perceive cannibalisation risk as being serious
Gift Card Centres will help the whole market grow
Gift ‘Vouchers’ being replaced by ‘Gift Cards’
Launch of Prepaid Open Loop Cards
Launch of new Multi-Retailer B2B Cards
New Channel Breakthrough for retailers
For some, consumers are not demanding gift cards
B2B continue to want Gift Vouchers
2007 – The Lowlights
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Negative Press- BBC interview
2007 – The Questions?
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Did gift card sales overtake gift voucher sales as
forecast in 2005?
Did those companies issuing paper vouchers only
see any cannibalisation from gift cards?
What innovations did we see in marketing and
merchandising?
Who instigated marketing campaigns to promote gift
cards and vouchers as opposed to merchandise?
Not Just Retail Hitting the
Headlines
Economics of gift vouchers
By Ruth Alexander
More or Less, Radio 4
Gift vouchers might seem like the easiest and safest Christmas present if you're not sure of
someone's tastes. But why are they often worth less than their face value?
"It is more blessed to give than to receive," especially when you can exchange hours of pacing up and down
the High Street with a quick bulk purchase of gift vouchers.
It's estimated we spend about £3bn a year on gift cards and vouchers in the UK - that's about 1% of everything
we spend in the shops.
But the British Retail Consortium says it is thought about a quarter of these vouchers and cards never get
redeemed. In terms of actual money spent, about eight per cent is wasted, according to the Vouchers
Association.
The News, Christmas 2008
 What
good things about Gift Cards
and Vouchers will be in the news?
 What negative press are we in
danger of receiving?
Hot Topics 2008
‘Such cards (gift and prepaid cards) are the icing on a
more substantial, highly topical cake: the credit
crunch.’
‘Prepaid cards in general, contactless payment cards
and the new reloadable mobile cards not only signal
the ongoing flight from credit, but could herald the
beginning of the end of cash’
Michael Poyner, Chief Retail Advisor,
PricewaterhouseCoopers writing in Retail Week
Hot Topics 2008
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Cross Border Redemption
Clarification of Emoney regulations
VAT on Vouchers – harmonisation across Europe
The Payment Services Directive
The True Benefits of Gift Cards
Open Loop v’s Closed Loop
Increase competition from new entrants to the market
Potentially negative PR
Tough year for retail
Contactless payments
GROWTH IN THE MARKET?
The Prepaid International
Forum
Andrew Johnson
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Umbrella Association covering whole PrePaid Market
Members across Europe
Affiliation with the NBPCA in USA
Working Groups:
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Business models – Rachelle Smith
Legal & Regulatory – available
Consumer & Education – Andrew Johnson
Updates in Voom!
PIF newsletter from VA office – includes profiles of
the Prepaid market in other European Countries
More info on PIF website
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Working on a standard Code of Conduct for all prepaid products including
gift cards
Looking to work this Code of Conduct into The VA Code of Conduct
Coordinating industry knowledge on Negative Balances – how prevalent
are they and who is liable – the consumer, the retailer or the issuer?
Starting new working group on prepaid card applications in transport
Other working groups are Consumer, Business Models, Legal &
Regulatory
VA sit on all WG’s, two representatives per group. Vacancies for Legal,
Business Models and Transport – interested?
Negative Balances
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Off line transactions
Gift cards and prepaid cards go into debit
Could this happen on your system?
How prevalent?
Who is liable – the consumer, the retailer or the
issuer?
IRI Data & New Sales
Figures
Yvonne West
Exec Member
What is IRI & IRI Data?
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Information Resources International (IRI)
Confidential data collection agency
No members of VA or the secretariat see individual
members data
IRI figures are sales from all Issuers members
Split into Corporate / B2B Sales & Over the Counter
Sales
Data submitted every quarter
New Data
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Current data collected is not reflective of the
whole industry
Sub committee formed to make proposal to exec
Exec agreed sub committee proposal
Agreed Scope
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Breakdown sales figures into:
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Paper vouchers
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£ value of sales
Total units sold
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£ value of sales
Total units sold
Open loop gift cards
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£ value of sales
Total units sold
Consumer sales
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£ value of sales
Total units sold
Restricted loop gift cards
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£ value of sales
Closed loop gift cards
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Collate sales channel data:
E-vouchers
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Direct sales
On line
Gift card centre
Third party
B2B sales
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Direct sales
On line
Out of Scope
 Redemption
information
 Breakage
 Up-spend
 Customer
data
 Paper volumes/average
Currently IRI provide graphs on data
Total Category Size
CORP
TOTAL
Q1 2004
Q2 2004
Q3 2004
Q4 2004
Q1 2005
Q2 2005
Q3 2005
12.0
Q3/05
16.3%
Q3/05
16.0%
11.0
9.1
8
6.9
5.4
2.0
599,500
Category Seasonality: Quarter 3, 2005 - Quarter 2, 2006
STORE
CORP
TOTAL
20
911,000
Q2 2006
Year On Year Growth of Total Market, by
Category Quarter This Year Vs Quarter Last
Year
22.0
Q3 2005 to Q2 2006
241,500
546,000
Q1 2006
Q3 2004 to Q2 2005
96,500
235,000
145,000
95,000
140,000
Q4 2005
580,000
885,000
847,000
480,000
310,000
244,000
98,000
225,000
146,000
90,000
225,000
90,000
135,000
135,000
470,000
300,000
245,000
100,000
212,000
145,000
84,000
206,000
128,000
82,000
124,000
Q4 2003
19.0
STORE
CORP
Q3 2003 to Q2 2004
Q3 2003
1,510,500
1,465,000
1,393,000
790,000
770,000
735,000
455,000
280,000
240,000
STORE
TOTAL
100,000
140,000
Total Category Size
6.16.5
7.2
7.9
6.5
4.7
4
2.0
-1.4
8.88.5
5.8
4.5
1.9
8.2
3.0
1.3
7.47.27.3
5.6
4.4
3.7
Q2/06
15.9%
Q4/05
52.7%
Q2/06
16.1%
Q4/05
51.8%
0.5
-0.6
-3.1
Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q203/Q3- 03/Q4- 04/Q1- 04/Q2- 04/Q3- 04/Q4- 05/Q1- 05/Q2- 05/Q3- 05/Q4- 06/Q1- 06/Q202
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03
03
03
03
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04
04
04
05
05
Q1/06
15.4%
B2C
Q1/06
15.8%
B2B
New Format
 IRI
will not manipulate data to
provide graphs
 Data submitted on excel sheet
 Data issued back to members on
excel sheet
All members to be categorised
 Split
members into following
categories:
Retail
Leisure
Agency / Multi-retail
Submit data via spreadsheet
Get back 3 reports
New Format
 Flexible
format of data
 Compare your sales to 1. total sales,
2. your category sales
 Not all columns will be completed
Next Steps
All members asked to submit new format of
data for whole of 2007
 Those members who contribute to the detailed
report will be asked to contribute old style data
for Q4 2007
 Requests for data from next week
 Data back to you by week 2 March
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The VA Conference 2008
The VA Conference 2008
Date: Tuesday 22nd April 2008
Venue: Marriott, Grosvenor Square, London
 All day conference followed by networking supper &
Café Jazz
 Mini exhibition running alongside
conference
 Special rates for VA members
Press Partnerships
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Promotions & Incentives
 Leading
motivation and incentives title in business to
business sector
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Customer Management
 Leading
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magazine in the call centre market
Retail Systems
 Publication
for IT decision makers in retail
Agenda
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The Retail Landscape
The Gift Voucher & Gift Card Market Today
What is Prepaid and am I in it?
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Overview of prepaid
Practical Applications of prepaid cards
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Transport
General Purpose Spending Cards
Product Specific Cards
Corporate Benefit Cards
Foreign Exchange & Money Transfer
Legal & Regulatory Issues
Focus on the Customer not the Technology
Gift Cards – Not Just for Traditional Retailers?
Developing Sustainable Sales & Marketing Strategies
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Selling in store
Selling on line
Selling on a gift card centre
Selling to the corporate market
Speakers
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Marilyn Bochicchio, President Paybefore & former President NBPCA
(USA)
Jamie King – IDT Fiance
David Tymms – EROS card
Simon Barnett – PizzaExpress
Keith Brand – Tefisto
Chris Grace – Coinstar
Tim Bishop – lastminute.com
Tony Craddock – Giftex Prepay
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Full agenda at www.the-va.co.uk
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Delegate Rates
Members
1 place
2 places
3 places +
Conference
Only
£310
£285
£260
Conference &
Supper
£360
£335
£310
Conference
Only
£365
£310
Conference &
Supper
£415
£360
Non-Members
All prices are plus VAT and are quoted per person
Calendar of Events
Rachelle Smith
Exec Member
VA Calendar
Attendance at Social Events
Event
2007
Bowling*
78
Windsor
Races
Vinopolis
Wine Tasting
77
2008
?
66
*Bowling may have encouraged more people rather then more companies
Social Function Idea?
Feedback from meeting
 Liked the fun feel of the bowling event
 Would like events to be cheaper so that more
people per company can come
 Suggestions for a VA Supper Club?
 email your ideas to [email protected]
Any Other Business?
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PCI Compliance / auditing
prepaid debit cards
Please let Sarah / Andrew
know if you have any advice
on software solutions for
this problem.
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Ccf magazine supplement –
October 2008