Earlier today I received a nice email from Mike “In Toyko” Rogers regarding my post Do Gift Cards Make Any Sense? Is it Time to Ban Christmas Presents Altogether?
Mike writes …
Hi Mish,
In Japan, even though Christmas gift giving is not customary, we do have a custom called “O-Kaeshi” (Honorable Return).
What “O-Kaeshi” means is that when you receive a gift, then you are obligated to give one back. The Japanese take it to extremes as when a gift is given then another is returned and then another given back for the one that was given back and the cycle continues.
I have put my foot down and told my wife and our friends to “Stop!”
It’s really absurd when a Japanese visits a foreign country and then feels obligated to buy some souvenir junk for the folks back at home (I mean, how many Hawaii refrigerator magnets – that are made in China – do we really need?)
When I tell the Japanese that we are to “stop it” (and I can because I have an executive position at work) they seem to always be relieved. Cultural and social pressures are not to be under-estimated.
Anyway thinking that you have to buy presents for the aunt you don’t like or cologne for the uncle you don’t even really know not only a waste of money, but philosophically inane.
It’s Better to buy gold or silver for the immediate family for yourself.
Thanksgiving is a better holiday than Christmas away because, at least, there’s no “socially required” gift giving.
Mike
More on Gift Cards
Reader “EM” writes …
Hello Mish,
The one circumstance under which gift cards make sense for both buyer and seller is if the card is offered at a discount to face value.
For example, I have long been using my local coffee ship’s gift card in lieu of cash there because I can buy a $100 card for $86. When it runs low, I just add another $100, again at a cost discount of 14%. The store owner gets more of my business than otherwise because I spend more when I feel I’m getting good value, and I enjoy the discount and the convenience of not having to worry about having cash in pocket.
Aside from this usage, though, gift cards are a complete racket.
Cheers,
EM
Mike and EM are both correct.
That said, I will point out there is nothing wrong with gift giving as long four conditions hold.
- Exchanging gifts is genuinely mutual as opposed to a social necessity or obligation
- The act of exchanging is not an emotional chore
- No one is financially burdened
- The gifts are appreciated and generally usable
I wonder what percentage one or more of the above is violated. I also wonder when it will be commonplace to discount gift cards.
Although I seldom see gift card discounting now, I suspect it will not be long before the practice is rampant. Once one major store offers discounts, the others will all follow.
Mike “Mish” Shedlock
