Welcome
Welcome
New Members
Guests
• American Express Advanced
Services Europe Ltd
• Incahoot Ltd
• Transactor Technologies
• Intotheblue.co.uk
• Limonetik
• The Silver Crane Company
Limited
• Ikea
UKGCVA Sales Data
2012
Andrew Johnson
Director General
Year On Year Sales – Members Only
Total Sales £bn
Total Sales £bn
+3%
+12%
2.28
+7%
+14%
+0%
+6%
£bn
+9%
+4%
1.36
1.41
1.54
+2%
1.64
1.64
1.91
2.37
2.04
1.68
Sales reported by UKGCVA members who represent approx 50% total market
2003
2004
2005
2006
2007
Year
2008
2009
2010
2011
2012
Total Market Estimate
Total Sales £bn
5
4.5
4
3.5
£bn 3
2.5
2
1.5
1
0.5
0
Total Sales…
Total market estimate 2012 at £4.74bn
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
% Breakdown Consumer v B2B
%
year
Paper v Plastic?
%
Paper v Plastic?
2012
B2B only: 40% paper, 60% plastic
Consumer only: 38% paper, 62% plastic
• In 2011 paper accounted for 51% of B2B sales,
increases in open loop and closed loop cards in B2B
have pushed plastic above paper in B2B for the first
time at 40% paper, 60% plastic
• The consumer sector remains fairly static at 38% paper
and 62% plastic
• The UKGCVA does not currently collate digital voucher
data but it is estimated at single digit %
Billions
Dollars Loaded on Closed-Loop Retail Gift Cards:
In-Store Gift Segment, 2003–2012
$120
$97.3
$100
$92.7
$84.6
$76.9
$80
$68.3
$66.1
$60.5
$60
$51.8
$48.4
$40.0
$40
$20
$0
2003
2004
2005
2006
2007
2008
2009
9
© 2012 Mercator Advisory Group
2010
2011
2012 (f)
% Breakdown of Loads on
Consumer v. B-to-B Closed-Loop Cards
10
© 2011 Mercator Advisory
Group
Plastic is Still the Dominant Form Factor
Form Factor
Average Percent of Loads
Plastic
98%
Virtual
2%
Mobile
0%
This table does not mean no one reporting using virtual or mobile cards, but
the average numbers for those cards are so small as to be negligible. For a
few individual respondents, virtual cards were extremely important. Mobile
cards still remain almost unused.
The Internet Is Still Not An Active Distribution Channel
Distribution Channel
Average % of Total
Sales
Median % of Total Sales
In-Store
50%
56%
Business-to-Business
Sales
23%
16%
Card Malls
17%
18%
Issuer Web Site
5%
2%
Third Party Web Sites
2%
0%
Social Media Sites
0%
0%
•We know there are active programs and companies for third-party online distribution and social
media distribution, but these products are still nascent. These do not total to 100 because of the
independence of the segments across issuers.
Average card load was $42.59, up 28 percent from $33.16
Irish Gift Card & Voucher Association
• Engaged with Retail Ireland
• Following discussions with RI and Exec agreed to put
plans on hold for Irish Association
UKGCVA Social
Event
Joanne Peake & Kevin Lake
UKGCVA Exec
UKGCVA Alternative Awards
•
•
•
•
•
Social event planned for July
Follows success of the ‘UKGCVA Legends Dinner’
Informal evening in London restaurant
Opportunity for networking
Short list of nominees will be suggested by the Exec
then members get to vote via online voting
• More details to follow
Gift Card & Voucher Week 2012
10th – 17th November 2012
© Copyright Clareville Communications 2012
Objectives
What did we set out to do?
• To create a focus on gift cards and vouchers in the pre-Christmas period
• To promote awareness of gift cards & vouchers at the key selling and
gifting time
• To promote acceptance of gift cards & vouchers amongst gift givers
• To bring together several brands pooling financial and promotional
resources to make a real impact
© Copyright Clareville Communications 2012
Activity
What we did
• Created a brand – plus logo, website and social media
channels
• invited issuers to become supporters
• selected and agreed media partners
• planned and implemented a consumer survey
• ran a business to business media relations PR campaign
• Ran a consumer PR campaign
• ran a consumer media promotions campaign
supporters
Activity
National survey – 1,000 respondents
• National and regional newspaper coverage
• 49 radio interviews broadcast
• Online media and social media coverage
© Copyright Clareville Communications 2012
Activity
Radio interviews & promotions
• 49 interviews
• Presenter led promotions on 100 local radio stations
offering gift cards and vouchers as prizes
© Copyright Clareville Communications 2012
Activity
National newspaper competitions
•
•
•
•
•
Mirror group as national newspaper media partner
In paper, online
Daily Mirror and Record
Each supporter had an exclusive day
6 days of coverage and over 62,000 unique visitors to the web
site
© Copyright Clareville Communications 2012
Activity
Consumer magazines & TV
• competitions in consumer magazines – print & online
• The Wright Stuff Channel 5
© Copyright Clareville Communications 2012
Activity
Regional newspaper competitions
• competitions placed in 47 regional newspapers
© Copyright Clareville Communications 2012
Business audience
• coverage in key b2b media
© Copyright Clareville Communications 2012
The initiative over indexed against all KPI
measures that we had set. The coverage,
impact and PR value hitting the levels that
they did meant that, through our
participation, we secured the highest ROI of
all campaigns run in 2012; a definite repeat
activity for 2013.”
.
This was probably the
best promotion for gift
cards and vouchers for
many years – definitely
repeating for this year
Supporters
comments
“Gift Card and Voucher Week
presented an ideal opportunity to
highlight both our brand and Gift
Card to the consumer market at the
key trading time in the retail year.
In a relatively crowded marketplace
raising profile and awareness of the
brand and offering is vital”
274 pieces of coverage
•
•
•
•
•
•
•
Business media coverage – print & online
National newspaper coverage –print & online
Regional newspaper coverage – print & online
TV coverage
Radio coverage
Online, social & digital media coverage
Tens of thousands of entries to the competitions
© Copyright Clareville Communications 2012
•
•
•
•
•
•
•
24 pieces of business press coverage
42 pieces of national media coverage
59 pieces of regional coverage
49 radio interviews – live & syndicated
100 radio competitions
62,290 visits to the Mirror competitions online
Website and social media engagement
Summary
Coverage & value
Total impacts
52,290,284
Total advertising equivalent
£263,627
PR value
£527,254
9th – 16th November 2012
© Copyright Clareville Communications 2012
•
•
•
•
•
Maximum 10 supporters
National and regional media coverage
New survey
Mix of editorial and promotional PR activity
Online and social media
Keeping Us On Our Toes!
• The British Media spent 2012 ‘exposing’
expiry dates..........
• ………and 2013 trashing gift cards when a
retailer goes into administration
Press Coverage – Printed and
Broadcast Media
UKGCVA Plan
Crisis Management
Reputation Management
Negative
Positive
Reactive
Proactive
Strategy
Crisis Management:
What we are dealing with
How the media drive crises
• Intense competition to get story first and best
• Copy and out-do each other
• Rush to judgement
• Desire to pin blame
• Quote critics
• Keep story running
• Reluctant correction, if any
PROPOSAL
Strategy
Crisis Management:
Always available for
comment
Crisis communication strategy
• Preparation is everything: silence and confusion are unforgiven
• Company is judged not on the crisis but by how it communicates
• No hiding place: 24/7 Internet/ twitter
• A small crisis can rapidly escalate
PROPOSAL
The cost of crisis
Reputation Management
‘It takes 20 years to build a reputation and 5 minutes
to ruin it.’
‘If you lose money for the firm I will be understanding.
If you lose reputation I will be ruthless.’
By: Warren Buffett, renowned
businessman and philanthropist
PROPOSAL
UKGCVA
Plan
Reputation Management
• White Paper – Administrators, benefits of gift
cards & vouchers
• White Paper – Guidance for consumers
• White Paper – Guidance for retailers/issuers
facing potential administration
• White Paper – Best Practice Guidelines for
Members
• Engage with retailer CEO’s
• Proactive Activity through the year
UKGCVA
Plan
Reputation Management
Proactive Activity through the year
• Gift Card & Voucher Week
– Build on the success of 2012
• Gift Card & Voucher Redemption Weekend
– Success in USA in 2011 & 2012
– January weekend
– Added value for redeeming your gift card over the weekend
• Christmas Gift Card Campaign
– Sponsored by SVS
UKGCVA
Plan
Reputation Management
Proactive Activity through the year
• Gift Card & Voucher Week
– Build on the success of 2012
• Gift Card & Voucher Redemption Weekend
– Success in USA in 2011 & 2012
– January weekend
– Added value for redeeming your gift card over the weekend
• Christmas Gift Card Campaign
– Sponsored by SVS
Proactive Activity will require financial support from members.
What can be achieved in your own stores as well as working together?
Government Intervention
• The recent administrations have not just
sparked the press
• Department for Business, Innovation & Skills
(BIS)
• Potential for self-regulation/’Code of Conduct’
• Imposed regulation unlikely, but possible
• Across the whole industry – from local hair
salons to multi-national retailers
• Ring-fenced funds
Government Discussions
• Education on the industry
• ‘Code of Conduct’ backed by OFT
• Is this a problem big enough for government
to be concerned?
• Level playing field within Europe
After the break we are joined by BIS representatives:
Julie McLynchy & Stephen Childerstone
Followed by panel discussion and questions from members to panel & BIS
The Government’s
View and Options
Julie McLynchy & Stephen Childerstone
Department for Business, Innovation & Skills
Julie McLynchy
Deputy Director
Consumers and Markets
Consumer and Competition Policy Directorate
46
Gift Cards & Gift Vouchers
• Here to learn more about the industry – e.g. value;
participants; structure & relationships
• Particularly interested to hear views on:
– Ways to protect consumers’ funds in the event of
insolvency:
• e.g. bonds; ring-fencing; voluntary codes of practice?
– Expiry dates on gift vouchers:
• why do some issuers include these and others not?
The Panel
Richard Gyselynck
Acorne Plc
Arun Glendinning
CashStar
Stuart Lawrence
B&Q
Tony Rich
Halfords
Robert Courtneidge
Locke Lord
VAT
Jim Wilkinson
PWC
www.pwc.com
Taxation of vouchers
March 2013
Reminder
• EU proposal for Council Directive on vouchers
• To be implemented from 1 January 2015
• Aim to harmonise VAT treatment of vouchers across EU
• Compromise text to be agreed by mid-2013
• Domestic legislation required in 2014
PwC
March 2013
Slide 50
Main Proposals
• Single Purpose Vouchers – tax due on issue
• Multi Purpose Vouchers – tax due on redemption
• Discounts through the supply chain treated as “distribution services”
• Discount Vouchers – third party reimbursements to be treated as
taxable services
PwC
March 2013
Slide 51
Developments since June 2012
• Meeting with Treasury in July 2012 and HMRC
• Examples of voucher treatment produced by European Commission
• Meeting with Treasury and Arthur Kerrigan (DG Tax UD) in
September 2012
• UKGCVA meeting and workshops in November 2012
• UKGCVA meeting with Treasury/HMRC – 27 March 2013
PwC
March 2013
Slide 52
Issues to discuss
• Meaning of “Nominal Value”
• SPV’s – Breakage
• MPV’s – Impact on margins when sold via intermediaries
• MPV’s – impact on Corporate sales
• Discount vouchers – over-turning Elida Gibbs ECJ ruling – major
issue for retailers selling zero-rated goods
• Cash-flow: tax on distribution service paid on issue rather than
redemption of voucher
• Place of supply – possible requirement for overseas VAT registrations
• Administrative burden – invoices for distribution services
PwC
March 2013
Slide 53
This publication has been prepared for general guidance on matters of interest only, and does not
constitute professional advice. You should not act upon the information contained in this publication
without obtaining specific professional advice. No representation or warranty (express or implied) is
given as to the accuracy or completeness of the information contained in this publication, and, to the
extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not
accept or assume any liability, responsibility or duty of care for any consequences of you or anyone
else acting, or refraining to act, in reliance on the information contained in this publication or for any
decision based on it.
© 2012 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to
PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a
member firm of PricewaterhouseCoopers International Limited, each member firm of which is a
separate legal entity.
New Digital World
John Weaver
Giftango
Arun Glendinning
CashStar
Clive Williams
SVM Digital
Christophe Bourbier
Limonetik
Next Meeting: Wednesday 12th June 2012