Ernst & Young recently reported that gift card sales in 2010 grew 4% over 2009.  That’s good news as recent trends have been flat, even down.  Choice, and an increased acceptance of gift cards as a meaningful gift gesture, continues to fuel the gift card market.  Online sales and the use of gift cards to offset a tough economy have also been significant trends in the gift card economy.

According to EY, “the gift card market doesn’t just include physical cards. Website and virtual gift cards are two growing trends that retailers need to keep an eye on.”

We agree.  We’ve firmly established ourselves as the leader in making gift cards even more valuable for consumers and merchants, and we work hard to make them more easily available to you.

Nearly everyone agrees that mis-gifted gift cards just don’t do anyone any good.  But every gift card has a home, and we view it as our job to bring those cards back into the stores and the hands of motivated shoppers.  Remember this video?  It’s as apt today as it was when we put it together more than 2 years ago, and probably more so.

Check out this video:

Plastic Jungle: We Can’t Draw but We Can Sell Discounted Gift Cards

In 2011 we’re pushing the envelope even further.  Our business has grown so fast that we’ve had to adopt new platforms to support the scale.  We’ve created new technology and new operations, expanded our customer service focus and enabled faster delivery. We are now offering better deals and even more ways to get great bargains and real value for cards that go unredeemed.

Here are some cool facts from Plastic Jungle (based on data from January 1 through March 31, 2011):

As always, your feedback is most welcome – please send your thoughts, ideas and criticisms to me at ceo@plasticjungle.com.  I read them all, and every day will make sure that we continue to build our service to best meet your needs.

Fox Business News’s Liz Claman wondered: What do you do when you get a gift card you don’t necessarily want?

On her segment “Off the Rack/Off the Hook” Liz took a look at the “Gift Card Fix” offered by Plastic Jungle in light of the endless getting and gifting this holiday season.

Liz quoted the statistic that about 13% of gift cards go unused, leaving people wondering what to do with the card in their wallet.

“If you’re holding on to a gift card you don’t want anymore, Bruce Bower has the ultimate solution.” That would be Bruce Bower, CEO of Plastic Jungle, who had plenty to say about gift card exchange, and finding the right owner for each gift card.

“You’ve created this place, the land for misfit gift cards, haven’t you.” Bruce agreed it was a fitting analogy, in that what Plastic Jungle does is get the right card into the hands of the person who wants it most, in an easy transaction, in a secure environment, with plenty of options.

Bruce went on to explain that Plastic Jungle also offers an Amazon.com Gift Card or Facebook credits in exchange for gift card redemption, or that Plastic Jungle could even make payment into a PayPal account.

“About $30 million in gift cards goes unused each year. Plastic Jungle aims to make gift card exchange services that are quicker, more convenient, more consumer-friendly and provide more choice for a consumer who wants to exchange their card,” said Bruce.

Bruce Bower and I met thirty years ago as incoming freshmen at college.  Just writing that sentence is pretty staggering to me, not just given the length of time.  We became fast friends and shared many common interests.  It is still incredible to me that we reconnected again years later over a business idea.

Nearly two years ago, over burgers at The Counter in Palo Alto, Bruce and I got together and agreed to take an active role in building Plastic Jungle (PJ) from where it was to where it could be.  I had joined the Board in June 2008 and had stepped in as CEO that November.  As we were out raising our Series A financing, Tod Francis from Shasta Ventures reintroduced Bruce and me, after we had lost touch through the years of different grad schools, several moves and starting families.

We both knew that there was a market need for a set of solutions that would help both consumers and customers benefit from getting the “trapped money” of unspent gift cards moving again.  In the past two years, we’ve had great success in building a strong foundation for the company and growing rapidly.  In fact, PJ is now growing 10-15% every month with great consumer loyalty.

Today, we announced that Bruce will become the company’s CEO, effective October 1, as I return to the Board, this time as Chairman.  I am very happy that Bruce has stepped into the role of CEO to take Plastic Jungle to new heights.  Bruce’s background has been perfect for PJ and he has a strong combination of vision and tenacity to run the company.

I am excited to go back to a role – in addition to my active Board role at PJ – that is more focused on marketing.  I have a strong passion to help lead a marketing organization again and greatly appreciate the counsel and support from the PJ Board in supporting my decision.  I have greatly enjoyed building the PJ team, forming a great Board and driving our results to date.  I will continue to work with Bruce and the entire PJ team to build our relationships with customers and grow PJ.

Finally, as Bruce and I have been essentially running the company together for the past two years, I know our fellow PJers and customers will not miss a beat.  After all, after thirty years as friends and two years as colleagues, we’re just getting started.

SAN JOSE, Calif. – September 9, 2010 – Plastic Jungle, the Web’s leading gift card exchange, announced today that Bruce Bower will become the company’s new Chief Executive Officer, following the tenure of Gary Briggs who will transition to Chairman of the Board of Directors, effective October 1.

“Bruce, who has served as president since April 2009, will continue to move Plastic Jungle forward along the exciting trajectory Gary set,” said Tod Francis, Managing Director of Plastic Jungle investor Shasta Ventures, and a member of the Plastic Jungle board. “It’s great that Bruce and Gary will continue to build the company together. Bruce brings many years of experience in the gift card space and Gary was senior at eBay and PayPal. This is an excellent combination to take Plastic Jungle forward.”

In his more than 20 years of management experience, Bruce has led early and mid stage technology enterprises and has been actively involved in the payments, media, education, and alternate energy markets. Prior to Plastic Jungle, Bruce served as Senior Vice President at Blackhawk Network, the largest third-party distributor of gift cards in the world.

“Bruce is very experienced in this sector and will be a tremendous asset to the business as CEO,” said Gary. “In many ways, his vision and prescience have made Plastic Jungle what it is today. We are well funded, we have a winning strategy and a topnotch team, and we are growing rapidly.”

He added, “In returning to the Board, where I started my Plastic Jungle career, I’ll be closely involved with our continued expansion as I pursue my longtime passion in marketing.”

Gary joined the Board of Plastic Jungle in May 2008 and was appointed CEO in November 2008. He came to Plastic Jungle after a successful career at eBay, where he was Senior Vice President and Chief Marketing Officer. He will succeed Lou Ryan, CEO of St. Bernard Software, as Chairman of the Board.  Lou will remain on the Plastic Jungle Board.

“Our business is very strong, which is a great time for this transition,” said Bruce. “Gary has played a central role in growing Plastic Jungle into the leading gift card exchange, and I look forward to continuing our work together. The next year will be an exciting one for Plastic Jungle. Stay tuned.”

About Plastic Jungle

Plastic Jungle (www.plasticjungle.com) is the Web’s leading gift card exchange, offering the best way to sell, buy or donate gift cards in a trusted environment. Consumers can save money at their favorite stores with discounted gift cards up to 30% off, and Plastic Jungle buys unwanted gift cards for up to 92% of the unused balance. The company’s mission is to bring liquidity to the estimated $30 billion unredeemed gift card economy for the benefit of consumers, retailers, and other ecommerce companies. Based in San Jose, California, Plastic Jungle is privately held, with venture backing from Shasta Ventures, Redpoint Ventures, First Round Capital, Bay Partners, Harrison Metal, and Western Technology Investment.

Contact:

Lana Gersten | 212-784-5714 | lgersten@groupgordon.com
Brielle Rajkovich | 408-832-0254 | Brielle@plasticjungle.com

Plastic Jungle’s CEO, Gary Briggs, shares how to exchange gift cards on Plastic Jungle.

Check it out… Gary’s segment was #8 on FOX Business’ top 10 most-viewed videos from March 12-March19.

At Plastic Jungle, we are laser focused on helping shoppers get the most from their gift cards through our innovative, convenient, and safe gift card exchange.  We want to provide the biggest savings with discounted gift cards and pay top dollar for your unwanted gift cards.  In short, we hope to help you save money in a whole new way.

With an estimated $30 billion of unredeemed gift cards out there, it seems this idea is catching on!  In our recent Jungle Update, we reported seeing a 250% increase in unique visitors selling gift cards since Christmas.  And the average PJ sale generated $85 for the gift card holder.

Did you receive a gift card for a restaurant not close enough to dine in?  Or a home goods store out of your price range?  Maybe you returned a gift and received a store merchandise credit?  We’re here for you! We will buy your unwanted gift cards for up to 90% of the unused balance (the price is driven by a variety of factors, primarily the brand of the card).  Trade in for an Amazon.com Gift Card and receive even more.  Or start 2010 off with a good deed, and donate your gift card to charity.

WalletPop summarized why gift card trade is so hot, “For the sellers, it’s obvious: They get a quick hit of cash in their pocket, even if they take a loss on the value of the card…. some sellers liquidate their gift cards to pay off holiday debts.  After all, you can’t pay a MasterCard bill with a Starbucks card.”

Leading into the holiday, the increase in average daily unique visitors interested in buying discounted gift cards was also up 180%.  And the average PJ purchased saved our buyers $10.  If you were one of those savvy shoppers, did you combine that with other coupons, sales, or promotions to save even more?

The most coveted this season were Macy’s Gift Cards, accounting for 10% of total holiday gift card purchases.  Retailers rounding out the top ten were Walmart, Best Buy, Target, The Home Depot, Land’s End / Sears / Kmart, Lowe’s, Starbucks, FYE and Barnes & Noble.

View the complete complete Jungle Update press release and learn which states buy and sell gift cards the most.

And check back often for news on new gift cards in our inventory and even bigger discounts on select merchants!

One of the things you think about when working at or running a company is what is it that your company does that no one else can do.  This is important for two reasons, I think. First, it provides a reason for a consumer to do business with you.  Second, it also provides a reason for employees to work with you.

So, to the question: Why we’re here. It’s actually pretty simple: We’re here to help people free up money trapped on their gift cards so that they can get cash, save when they shop or donate to a cause.

The gift card industry is pretty interesting, actually. And that’s something I certainly didn’t think I’d be saying a little more than a year and a half ago when I first got involved in Plastic Jungle. Tina Henson, our company Founder, had a friend who had a gift card with a large balance on it and she didn’t want to use it at the store it was for.  What to do?  Well, sell it to someone who wants it and create a market for people who have the same issue.

What’s unique about PJ (as we call it internally) is that we verify every transaction.  So, unlike other places where you might trade gift cards online, we make sure every card is valid before it’s sold and guarantee the transaction when the card is bought.  Trust is key to growing a market and we really like the growing part of running a business.

I used to work at eBay and one of the things we used to say about eBay was that we made inefficient markets efficient.  And that is certainly what we’re doing at PJ.  Every year, more than $80 Billion is spent on gift cards and they are given away about 95% of the time (I’ll explain the other 5% to you over a beer sometime.).  And, not surprisingly, sometimes someone gets a gift card for a store that they’re, for whatever reason, not into very much.  So, that card sits in the proverbial sock drawer and doesn’t get spent.  About 8-10% of cards meet this fate every year.  That adds up.  For retailers, most now realize that it would be a good thing to get more users in the door spending these sock-drawer-trapped gift cards.  That gets back to why we’re here:  Money trapped on a gift card.  Free that money through Plastic Jungle.

So far, we’ve been growing well and as people find out about us they seem to really like what we’re doing.  I certainly have found that once someone understands how much money they have sitting on gift cards in their sock drawer and that they can get cash for or donate that card, that person is thinking that PJ is a good idea, too.

We’re still learning about what our users want and how to make PJ better.  I don’t think that will ever stop.  A great part of growing a company is just learning more every day.  But we will remain focused on why we’re here:  Freeing up money for the benefit of our consumers and retailers.  It’s a simple idea and, from what we see so far, a great one, too.