It allows users to send their friends gifts, using their connections on social networks like Facebook. Usually many of these gifts are free, supplied recognised brands looking to gain exposure on social networks.
"We're very excited about launching a social gifting platform in South Africa. Most international companies don't see the benefit of launching here but with its relatively high number of Facebook users, South Africa is a perfect market to launch," said Kevin Tucker, founder of GoGifting.
"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."
GoGifting will allow people to give their friends gifts (initially 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 Africa's favourite brands and retailers. Users will also have the unique ability to pool together as a group of friends and give a group gift card.
Because it uses Facebook to connect users, an added benefit is that it will be easy for the large population of South Africans living overseas to send rand-value gifts back home. For merchants, it offers a unique, performance-based marketing channel for their brand.
The gift card system is a modern way to reach new customers at a considerably lower customer acquisition cost than traditional channels. Research in Sweden has also shown that recipients of gift cards spend upwards of three times the gift card value, in-store or online.
The launch offers value-packed, free offerings from some of South Africa's top retailers, including @home, Edgars, WantItAll.co.za, kalahari.com, Norman Goodfellows, Flowers.co.za and Mantality.co.za. More retailers and brands are in the pipeline. Every day a selection of gift cards is available free of charge.
Tucker founded PriceCheck, South Africa's leading shopping comparison destination in 2006. MIH Internet Africa (a division of Naspers) subsequently acquired it in 2010. While in the MIH environment, he started up the popular, but short-lived daily deal site, Dealify. He believes that social gifting is the next big thing and is excited about bringing the concept to South Africa.
For more information, go to www.gogifting.co.za.
