DropGifts social gifting coming to SA

The DropGifts Facebook gift card service will soon be launching in South Africa

By - March 15, 2012

The Berlin-based startup DropGifts, which allows Facebook users to send gift vouchers to one another, is set to launch in South Africa by the end of Q1 2012.

DropGifts claims that is already the market leader in the UK, France and Germany and said that it is in the second phase of its international roll-out strategy.

“We’re very excited about launching in South Africa. Most international companies don’t see the benefit of launching here, but with the relatively high number of Facebook users, South Africa is, in fact, a perfect market to launch DropGifts,” said Kevin Tucker, MD of DropGifts South Africa.

“The gift card market is already a $100 billion market in the US alone, and in South Africa it really is growing in maturity. We’re seeing all kinds of gifts cards on sale, and now we’re bringing that to Facebook and smartphones (with our DropGifts app),” he added.

DropGifts will allow people to give their friends gift cards for their birthdays and other special occasions using Facebook as a platform.

There will be free gift cards on offer from a variety of South African brands and retailers. Users will also have the ability to pool together as a group of friends and give a group gift card.

Some of the retailers supported at launch will include:

  • Zando
  • Glossybox
  • Sportsmans warehouse
  • Wantitall

DropGifts said that they would like to keep the complete list a surprise for when they launch. “We are also in discussions with a number large retailers which will be confirmed soon,” DropGifts said.

Because DropGifts uses Facebook to connect users, an added benefit is that it will be really easy for the large population of South Africans living overseas to send Rand-value gifts back home.

For merchants, DropGifts pointed out that research in Germany has shown that recipients of gift cards spend upwards of 3 times the gift card value in-store or online.

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