The Impact of Third Party Distribution Channels
What is third party distribution?
You have seen third party distribution when you’ve walked past the gift card displays at your grocery or pharmacy but may not know it by name. Third party is a common term in the B2B Gift Card Industry. It’s the opportunity to sell gift cards in retail locations that are independent of the brand represented on the gift card. By definition, third party sales refer to the three companies involved when selling to the consumer: the brand on the gift card, the company that sells the gift card, and the company that manages the operational component of the transaction. For most gift cards programs, third party represents their largest sales channel and the greatest opportunity for consumer awareness and marketing. Why’s this? Consumer traffic!
CVS Health Brand Exceeds Expectations
CVS/pharmacy posted a 10.3% increase in net revenue in the third quarter. As the economy continues to recover and the pharmacy sector continues to grow, positive returns shouldn't be surprising. However, the numbers CVS Health brand is putting up are almost unprecedented. A major reason for the growth came from the acquisition of Omnicare, which continues to prove the innovation of CVS/pharmacy. Omnicare allowed CVS/pharmacy to expand into the niche pharmacy market for senior living and long-term care facilities and provide care to a population who may never go into a retail pharmacy.
Donating gift cards during the holidays
Saying this time of year is busy is an understatement. While it's easy to get wrapped up in the decorations, music, food and everything else that comes with the holiday season, it's also an important time of year to reflect on what we can do for others. This can mean volunteering your time at a food kitchen, helping collect gifts for needing families, or simply making a financial donation. But before you take out that check book it's important to note the growing trend towards gift cards this holiday season. Many nonprofits are recommending donors give gift cards instead of the standard canned foods or teddy bears so that families are then able to go make the purchases for food or gifts themselves. See how these organization are making a difference in peoples lives with gift cards during the holidays:
2015 Holiday Gift Card Trends
The holidays are rapidly approaching and we have the latest in shopping and holiday gift card trends for this season!
According to the National Retail Federation’s Holiday Consumer Spending Survey, consumers will spend an average of $805.65 on food, decorations, gifts, and more this holiday season, the highest amount in the survey’s 15-year history! Top findings of consumers surveyed showed:
