Starbucks Capitalizes on Consumer Spending Habits
Finding a gift each year that checks all the boxes – thoughtful, affordable, something they actual want– means a lot of work. The stress of it all often leads us to forgo reason and take the plunge, shelling out big bucks, Forbes says it’s creeping up to an average $173 per person, on boring, meaningless gifts just so we have something put under the tree. This trend towards the impersonal isn’t helped by the fact that almost 60% of Americans rank gift cards at the top of their holiday wish list. See Credit Season’s breakdown of popular wish list items below.
With stats like this, it’s no surprise that major brands have started to take notice and offer opportunities to channel big budgets into exceptionally simple products. Take for example, the release of the limited edition Gilt.com Starbucks Metal Card. Fashioned out of solid stainless steel and only available to the first 5,000 buyers the gift cards retail for $450 – $400 in Starbucks credit, $50 for the card. Just in time for the holidays, Starbucks is leveraging the popularity of gift cards side by side with the exclusivity of luxury or as Gilt.com executive vice president Jason Goldberger stated in USA Today, “Its appeal is exclusivity, when you’re waiting in line at Starbucks, the next person in line won’t have it.” Merry Christmas to you!
So we ask, will the burgeoning sales of gift cards and concepts like Starbucks’ new, hyper-exclusive promotion be a bellwether for other brands who are looking to pad their pockets during the cash-happy holiday season? Or will this be a jump the shark moment for the impersonal gift card market?
Account Executive for the Consumer Practice