DUBLIN, Sept. 16, 2020 /PRNewswire/ — The “South Korea Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Market Size and Forecast (2015-2024) – Covid-19 Update Q2 2020” report has been added to ResearchAndMarkets.com‘s offering.
The gift card market in the country will increase from US$ 4,563.5 million in 2019 to reach US$ 7,045.6 million by 2024.
This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by Covid-19 outbreak on gift card industry in South Korea.
Historically, the gift card market in South Korea has recorded a steady growth with a CAGR of 15.2% during 2015-2019. However, According to the Q2 2020 Global Gift Card Survey, gift card market in South Korea is expected to be impacted across retail and corporate segments due to disruption caused by Covid-19 outbreak.
Though growth of gift card industry will be impacted due to pandemic, South Korea has done well to control the outbreak. As a result, impact on gift card industry is expected to be much less, as compared with most other countries globally. Adoption of e-Gift cards is also expected to increase significantly over the next 4-6 quarters. There are interesting trends emerging across various segments, which are expected to fundamentally reshape gift card industry dynamics.
Despite near-term challenges, medium to long term growth story of gift cards in South Korea remains strong. The gift card industry in South Korea will continue to grow over the forecast period and is expected to record a CAGR of 10.0% during 2020-2024.
In Korea, gift cards have gained importance as payment method during the last five years. The growth of the market is primarily attributed to the wide acceptance of gift cards by the individual and corporate consumers. Moreover, technological advancement in the payment industry has expanded the prepaid card market growth which also supported the gift card market in Korea.
Personalized digital gift cards are gaining popularity in the country. Leading retailers such as Homeplus, Shinsegae, and Lotte have been offering gift cards integrated with mobile application to incentivize customers. Lotte which operates Lotte Departmental Stores, Lotte Mart, and Lotte Hi-Mart offers its gift cards through its mobile application. Moreover, Starbucks Coffee Korea has integrated company’s personalized e-gift cards and e-gift items ordering system with Siren Order, Starbucks’s mobile order and payment system .
The presence of domestic and international gift card issuers makes the Korean gift card market more competitive. Leading domestic prepaid card issuers such as Korea Prepaid Card offers a wide range of gift cards for corporate and retail customers. The company is also the authorized distributor of Google Play gift cards in the country.
The South Korean gift card market is also expanding due to the rising trend of trading gift cards for buying bitcoins and other altcoins. Some of the key players include paxful.com and bitrefill.com offer cryptocurrency trading through gift cards. The market for cryptocurrency is growing in the country which will support the gift card market over the period.
Additionally, Koreans are also making use of gift certificates to order food through food delivery apps in the country.
Reasons to Buy
- In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2014-2023) for gift cards and incentive cards in South Korea.
- Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
- Get insights into consumer attitude and behaviour in South Korea: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
- Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Distribution channel insights: Understand gift cards sales dynamics by channels – online vs offline and by 1st party vs 3rd party sales.
Companies Mentioned
- Lotte Group
- Shinsegae Co Ltd
- Hyundai Department Store Co Ltd
- GS Holdings Corp
- SK Planet Co Ltd
- BGF Retail Co Ltd
- Costco Wholesale Corp
- GS Homeshopping Co Ltd
- Samsung Corp
- CJ O SHOPPING Co Ltd
- CJ Cheiljedang Corp
- LG Corp
For more information about this report visit https://www.researchandmarkets.com/r/hy6g5d
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