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Welcome

Welcome. Andrew Johnson Director General. Natasha Toothill Vice Chairman. Apologies. 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

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Welcome

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  1. Welcome

  2. Andrew Johnson Director General

  3. Natasha Toothill Vice Chairman

  4. Apologies • 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

  5. Welcome – New Members • Days of Your Life – Shaun Powell & Vicki Ling Membership • Issuers - 38 • Service - 34 • Social – 1 • 73 total

  6. Where are we now?The Gift Voucher & Gift Card Market Today Andrew Johnson Director General

  7. 2007 – The Highlights Feedback from the members included: 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

  8. 2007 – The Lowlights Negative Press- BBC interview

  9. 2007 – The Questions? 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?

  10. 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.

  11. 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?

  12. 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

  13. Hot Topics 2008 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?

  14. The Prepaid International Forum Andrew Johnson

  15. Umbrella Association covering whole PrePaid Market • Members across Europe • Affiliation with the NBPCA in USA • Working Groups: • 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

  16. 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?

  17. Negative Balances 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?

  18. IRI Data & New Sales Figures Yvonne West Exec Member

  19. What is IRI & IRI Data? • 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

  20. New Data Current data collected is not reflective of the whole industry Sub committee formed to make proposal to exec Exec agreed sub committee proposal

  21. Agreed Scope • Breakdown sales figures into: • Paper vouchers • £ value of sales • E-vouchers • £ value of sales • Total units sold • Closed loop gift cards • £ value of sales • Total units sold • Restricted loop gift cards • £ value of sales • Total units sold • Open loop gift cards • £ value of sales • Total units sold • Collate sales channel data: • Consumer sales • Direct sales • On line • Gift card centre • Third party • B2B sales • Direct sales • On line

  22. Out of Scope Redemption information Breakage Up-spend Customer data Paper volumes/average

  23. Currently IRI provide graphs on data Total Category Size Total Category Size Year On Year Growth of Total Market, by Category Quarter This Year Vs Quarter Last Year Category Seasonality: Quarter 3, 2005 - Quarter 2, 2006 B 2 C B 2 B

  24. New Format IRI will not manipulate data to provide graphs Data submitted on excel sheet Data issued back to members on excel sheet

  25. All members to be categorised • Split members into following categories: • Retail • Leisure • Agency / Multi-retail

  26. Submit data via spreadsheet

  27. Get back 3 reports

  28. New Format Flexible format of data Compare your sales to 1. total sales, 2. your category sales Not all columns will be completed

  29. 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

  30. The VA Conference 2008

  31. 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

  32. Press Partnerships • Promotions & Incentives • Leading motivation and incentives title in business to business sector • Customer Management • Leading magazine in the call centre market • Retail Systems • Publication for IT decision makers in retail

  33. Agenda • The Retail Landscape • The Gift Voucher & Gift Card Market Today • What is Prepaid and am I in it? • Overview of prepaid • Practical Applications of prepaid cards • 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 • Selling in store • Selling on line • Selling on a gift card centre • Selling to the corporate market

  34. Speakers • 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 • Full agenda at www.the-va.co.uk

  35. Delegate Rates All prices are plus VAT and are quoted per person

  36. Calendar of Events Rachelle Smith Exec Member

  37. VA Calendar

  38. Attendance at Social Events *Bowling may have encouraged more people rather then more companies

  39. 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 sarah@the-va.co.uk

  40. Any Other Business? • PCI Compliance / auditing prepaid debit cards Please let Sarah / Andrew know if you have any advice on software solutions for this problem. • Ccf magazine supplement – October 2008

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