This festive season, Afterpay, the leading Buy Now, Pay Later (BNPL) provider and Spotify are transforming gift-giving with the launch of the Gift Generator. This in-app experience harnesses Spotify’s streaming intelligence to craft the ultimate gift list tailored to each user’s preferences. By merging the power of music personalisation with seamless shopping experiences, the Gift Generator offers a unique solution to the age-old problem of unwanted gifts.

 

According to new research from Afterpay (via Ideally Insights Platform), almost half (48%) of Australians receive at least one unwanted gift over the holiday season. The impact of these unwanted gifts is significant with more than a third ( 37%) of Australians admitting to feeling awkward as they pretend to like an unwanted gift, 11% feel disappointed, and almost a fifth (16%) feel misunderstood by the gift giver and 18% stating it adds clutter to their lives.

 

The Gift Generator addresses these concerns by offering curated gift recommendations and a customised playlist customised by the user’s "Grinch Factor" - based on how festive they’re feeling. 

Inspired by Spotify experiences like daylist, the Gift Generator analyses listener behaviour—favourite artists, genres—and asks a series of questions to personalise gift suggestions. Customers can also explore lifestyle preferences; whether they identify as a Beauty Guru, Trendsetter, Thrill Seeker, or Treasure Hunter. In an Australian-first, the experience is enhanced by haptic technology, allowing users to shake their phones to unlock their gift box and proceed to purchase.

 

"We are proud to collaborate with Spotify on the Gift Generator, a unique initiative that combines music personalisation with seamless shopping experiences," said Kevin Azzopardi, Trade and Partner Marketing Director, ANZ. "This partnership empowers consumers to discover and purchase perfect gifts, helping them to avoid last-minute purchases that can lead to overspending. By integrating Spotify's streaming intelligence with Afterpay's flexible payment options, we’re able to enhance the joy of gift-giving while supporting responsible spending habits during the festive season."

 

Spotify Head of Sales - AUNZ, Adrian Bingham, said: “We’re thrilled to partner with Afterpay on this innovative campaign, just in time for the holiday season. The Gift Generator taps into what Spotify does best – using music to create deeply personalised experiences. Paired with the convenience of Afterpay, it’s a fun, interactive way to celebrate the spirit of giving, and we can’t wait to see how our users engage with it.”

Survey results further reveal that 46% of Australians feel stressed about receiving unwanted gifts, primarily due to concerns about hurting the giver's feelings. However, 72% believe that personalised gifts show more thought and care. With nearly half  (47%) of respondents interested in using technology to create personalised gift lists, the Gift Generator is poised to meet this growing demand.

 

Key Findings from the 2024 Gifting survey:

These insights underscore the importance of personalisation and the potential for innovative solutions like the Gift Generator to enhance the shopping experience.

Frequency of Unwanted Gifts: Almost half (48%) of Australians receive at least one unwanted gift at the festive season.

Actions on Unwanted Gifts: Re-gifting and donating are popular options, each chosen by a third (33%) of respondents. Returning or exchanging unwanted gifts is less common, selected by one fifth (20%), while discarding them is the least favoured option (7%).

Time Spent on Returns:  Almost a third (31%) spend up to an hour returning unwanted gifts, while the younger generation is more likely to spend time on returns.

Stress Factors: Almost half (46%) worry about hurting the giver's feelings, while more than a third (37%) feel awkward pretending to like a gift. A further one in three (31%) cited feeling guilt about not appreciating the gift, with that figure jumping to 41% of those aged 18-34.

Importance of Personalisation: 72% of respondents consider personalisation important, with younger and female respondents placing a higher emphasis on this aspect of gift-giving.

Interest in Personalised Gift Services: Almost half (47%) are likely to use a personalised gift list service, with significantly higher interest (71%) among younger generations (18-34 yos).

Usage of Personalised Gift Services: 79% have never used such a service, indicating potential growth opportunities, especially among younger respondents where their interest is high.