welcome
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Welcome. Chair’s News Round. New Name for Association. From 1 st January the association has been renamed ‘ UK Gift Card & Voucher Association ’ Principally for external reasons, particularly with PR Still confusion about The Va Change cost very little - PowerPoint PPT PresentationTRANSCRIPT
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Welcome
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Chair’s News Round
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New Name for Association
• From 1st January the association has been renamed ‘UK Gift Card & Voucher Association’
• Principally for external reasons, particularly with PR
• Still confusion about The Va
• Change cost very little
• Objective ‘does what it says on the tin’
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Congratulations
• Sainsbury’s for winning Best Card Design at The Card Awards last week
• PPT (PrePay Technologies) launched a new company this week, a partnership with MasterCard International and PPT parent company Accor. New company will be Prepay Solutions.
• Helen Child, G-T-P, new executive member as John Davis has stepped down
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Business News
• 20 retailers went into administration last year; high profile Woolworths & zavvi
• BRC Retail Sales Monitor for December showed the worst figures for 14 years
• BRC Retail Sales Monitor for January reported like for like sales up 1.1% (best performance since May) – heavily driven by food sales
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Deloitte’s 14th annual consumer & retail sector survey
• In Deloitte’s survey issued just before Christmas, gift cards & vouchers were 6th on people’s Christmas shopping lists, slightly down from 4th position in 2007.
• In the survey women stated their most wanted present is gift cards & vouchers – for men it was clothes!
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Gift Cards less popular (USA)
• Many of the surveys ran in the US prior to Christmas were forecasting reductions in gift card spend.
• This was mainly due to the increasing popularity of open loop cards & general economic situation in the US.
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Changes to P&I
• P&I magazine published final printed copy in January 2009.
• P&I and Brand Republic among others will now be purely online.
• They will be clustered together headlined by Marketing.
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Changes to P&I continued
• Benefits include Marketing doing supplements through year, such as Voucher Essays (Jan 09).
• Next Voucher Essay comes out on day of conference, currently in talks about potential link.
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The Retailer
• The Retailer is the British Retail Consortium’s (BRC) publication.
• The Retailer is planning several features with UKGCVA in the coming 12 months
• The next feature will be regarding B2B strategies.
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The Current Economic Climate – Challenges for 2009• Press issues particularly focused on retailers
in administration
• Legislation not on Government Agenda
• How will this affect the industry going forward?
• As an industry what should be doing?
• Need to be mindful of all stakeholders, issuers, agents, third party resellers, etc
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Background to data analysis
• One of the key objectives of The VA is to gather & collate industry data.
• Every new member has to submit historical sales data for the last three years.
• The VA has collated data on behalf of members for over 6 years to build a picture of the market & help assess trends for the future.
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Headlines – Q4
• Total Sales – gift cards 52%, paper vouchers 48%
• Consumer Sales – gift cards 66%, paper vouchers 34%
• Corporate Sales – gift cards 21%, paper vouchers 79%
• Total Sales – 68% consumer, 32% corporate
• Card Sales Consumer – 97% in store, 2% gift card centre, 1% online / other third party
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Total Sales Consumer v Corporate
Consumer / Direct68%
Corporate32%
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Consumer v Corporate
45% 45% 44% 32%
55% 55% 56% 68%
0%20%40%60%80%
100%
Q1 Q2 Q3 Q4
Consumer
Corporate
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Product Channels % Share Total Sales
Retailer71%
Agency26%
Leisure3%
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Product Channels % Share Total Sales
14%
18% 15% 26%3% 3% 3%3%
83% 79% 82% 71%
0%10%20%30%40%50%60%70%80%90%
100%
Q1 Q2 Q3 Q4
Retail
Leisure
Agency
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Product Channels % Share
Agency33%
Leisure2%
Retailer65%
Agency22%
Retailer74%
Leisure4%
CorporateCorporate ConsumerConsumer
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Sales By Product – Total Sales
Paper48%
Gift Cards52%
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Sales By Product – Total Sales
50% 52% 50% 48%
50% 48% 50% 52%
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4
Gift Card
Vouchers
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Sales By Product
Paper79%
Gift Cards21%
CorporateCorporate
Paper34%
Gift Cards66%
ConsumerConsumer
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Sales By Product - Consumer
24% 27% 25% 34%
76% 73% 75% 66%
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4
Gift Card
Vouchers
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Sales By Product - Corporate
82% 82% 80% 79%
18% 18% 20% 21%
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4
Gift Card
Vouchers
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Sales – Cards Only
Closed Loop97%
Open Loop1%
Restricted Loop2%
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Sales – Cards Only
2.50% 3.00% 3.00% 2.00%0.50% 1.00% 1.00% 1.00%
97% 96% 96% 97%
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4
Closed LoopRestricted LoopOpen Loop
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Sales – Cards Only
Direct Sales99.95%
Online0.05%
Direct Sales97.0%
Gift Card Centres
1.0%
Other Third Party and Online
2.0%
CorporateCorporate ConsumerConsumer
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Card Sales By Channel - Consumer
91%
98% 97% 97%1%
1%1% 1%
6%
1%1% 1%2%
0% 1% 1%
86%
88%
90%
92%
94%
96%
98%
100%
Q1 Q2 Q3 Q4
3rd Party
Gift Card Centre
Online
Direct Sales
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Andrew Johnson
Director General
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Update on Payment Services & Emoney Directive• Payment Services Directive changes have
been agreed by Parliament and will apply from November 2009.
• The key area for us is ‘Limited Network’
• Emoney Directive is now under consultation (closes 14 April)
• GCVA met with Treasury and FSA yesterday
• ‘Limited Network’ is biggest issue here also
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Update on Payment Services & Emoney Directive• Currently the definition of Limited Network will
transfer from PSD to EMD
• However, some EU countries are questioning the broad definition and this needs to be ratified:– It should apply to specific pre-paid instruments, not
fungible designed to address very precise needs– The commission shall adopt measures to ensure
convergent application of the provisions referred to under paragraphs 3
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Update on Payment Services & Emoney Directive
• Fungible – – cluefungible |ˈfənjəbəl|adjective Law(of goods contracted for without an individual specimen being specified)
able to replace or be replaced by another identical item; mutually interchangeable : money is fungible—money that is raised for one purpose can easily be used for another.DERIVATIVESfungibility |ˌfənjəˈbilətē| |ˈfəndʒəˈbɪlədi| |-ˈbɪlɪti| nounORIGIN late 17th cent.: from medieval Latin fungibilis, from fungi‘perform, enjoy,’ with the same sense as fungi vice ‘serve in place of.’
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Update on Payment Services & Emoney Directive• And this means….?
– Limited Network open to interpretation
– Other countries want clearer definition
– Lack of understanding about the market (especially from mainland Europe)
• Action– Agreed in association with Salans (our lawyers) to
draft a list of product models and submit them to Treasury
– All members can feedback into the consultation
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Update on Payment Services & Emoney Directive• Payment Services Directive Seminars by FSA
on:– 23 March, Birmingham
– 25 March, Canary Wharf
– 26 March, Bradford
– 31 March, Canary Wharf
– 01 April, Edinburgh
– Details from Andrew
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VAT – harmonisation on vouchers across Europe – the story so far
Toby O’Reilly
Ernst & Young
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Toby O'Reilly Ernst and Young
• Commission working on EC proposal
• Draft proposal available April/May 2009
• Proposal is not an EU priority
• Opportunities to influence
• UK Government starting ‘informal’ consultation process
• Lots to do to reach consensus
• Implementation unlikely to be 2012 or earlier
VAT and vouchers - EC proposals
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Toby O'Reilly Ernst and Young
• More detailed update
• Focus on opportunities to influence
• Can we shout with one voice?
• Who cares?
• Understand what you want
• Consider VA strategy and next steps
This afternoon
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Conference 2009
Arun Glendinning
Vice Chair – The VA
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Conference 2009
• Wednesday 29th April 2009• Queen Elizabeth II Conference Centre
• G-T-P title sponsor
• 1 remaining sponsorship opportunity and some exhibitions stands available
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Sponsors & Exhibitors
• Other Sponsors & Exhibitors are:– Smith & Ouzman– Cognitronics– PrePay Technologies– Stored Value Solutions– Thames Card– Kalamazoo– DX Group– CPI Card Group– The Gift Card Centre– Canvey
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Agenda & Speakers
• Speakers– Stephen Robertson, BRC– James Quilter, P&I– Leigh Anne Ambrose,
Marriott USA– Carman Wenkoff, Subway
USA– Florian Welsch, cadooz,
Germany
• Agenda– Incremental sales analysis– Business to Business– USA & European markets– Gifting and Loyalty– Legal & Regulatory– Contactless Payments– Open Loop Gifting– Research on new
technology
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Events
• Association Events:
– Social Event, Wednesday 18th March, Pub Quiz, TigerTiger, London. £30.
• Non-Association Events:– Card Awards –
congratulations to Sainsbury’s winning Best Card Design
– Prepaid Card Expo, Orlando, Florida. 9-11th
March