South Korea Gift Card and Incentive Card Market Intelligence 2024-2028 Featuring Key Retailers - Lotte Group, Shinsegae, Hyundai Department Store, GS Holdings, SK Planet, BGF Retail, Costco Wholesale
South Korean Gift Card and Incentive Card Market
Dublin, Oct. 16, 2024 (GLOBE NEWSWIRE) -- The "South Korea Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The gift card industry in the region is expected to grow by 8.0% on annual basis to reach US$6.9 billion in 2024. The gift card industry in South Korea will continue to grow over the forecast period and is expected to record a CAGR of 7.0% during 2024-2028. Gift card market in the country will increase from US$6.4 billion in 2023 to reach US$9.1 billion by 2028.
This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.
The ongoing shift from physical to digital gift cards, accelerated by the COVID-19 pandemic, has increased demand for convenient gifting options. Expanding gift card categories to include lifestyle experiences and services reflects changing consumer preferences and market trends.
Although there have not been major regulatory changes in the gift card sector over the last six months, the existing framework continues to support market growth. The government's emphasis on e-commerce, consumer protection, and the increasing adoption of digital gift cards positions the South Korean gift card industry for sustained expansion in the coming years.
Key Developments in the Gift Card Sector in the South Korea
Product Launches and Innovations
KakaoTalk Gift Cards: KakaoTalk, a leading social media platform in South Korea, has expanded its digital gift card offerings, allowing users to easily send gift cards through the app. This feature has become particularly popular among younger consumers, contributing to the growth of digital gifting in the country.
Expansion of Retailer Gift Card Offerings: Major retailers like Lotte and E-Mart have broadened their gift card selections to include a wider range of options beyond traditional products and services. New categories now feature lifestyle experiences such as laundry services and language courses, catering to diverse consumer preferences.
Corporate Gift Card Programs: Many companies have launched corporate gift card programs to reward and motivate employees, especially in remote work settings. These programs have gained traction as businesses seek to boost employee engagement and morale.
Strategic Partnerships
KakaoTalk and Digital Gift Cards: KakaoTalk continues to strengthen its leadership in the digital gift card market. The platform has further enhanced its gift card offerings, making sending digital gift cards through the app easier. This integration has made gifting more accessible and convenient, particularly for younger audiences, fueling the overall growth of digital gifting in South Korea.
eXtra and YouGotaGift Collaboration: In a significant partnership, eXtra, a major consumer electronics retailer, partnered with YouGotaGift to launch a branded gift card program. This initiative leverages YouGotaGift's omnichannel processing solution, enabling customers to purchase and redeem gift cards across eXtra stores, enhancing the retailer's digital offerings.
FNP.ae and Merit Incentives Partnership: FNP.ae, an online gifting solutions provider, partnered with Merit Incentives to introduce FNP gift cards in South Korea, Qatar, and the UAE. This collaboration aims to broaden FNP's product offerings and meet the growing demand for digital gift cards, boosting competitiveness in the market.
Corporate Gift Card Programs: Corporate gift card programs have become increasingly popular in South Korea, especially as companies seek new ways to engage employees working remotely. These programs reflect the rising trend of corporate gifting and highlight the growing importance of digital solutions in the workplace.
Retailer Partnerships
Leading retailers, including Lotte and E-Mart, have expanded their gift card portfolios to feature more options beyond traditional products. These include lifestyle experiences, which address diverse consumer needs and enhance the attractiveness of gift cards.
These partnerships showcase the evolving landscape of South Korea's gift card market, which is driven by strategic collaborations between digital platforms and retailers and increasing demand for innovative gifting solutions.
Regulatory Changes
Growth-Enhancing Initiatives: The South Korean government has taken various steps to foster growth in the gift card sector, particularly in response to shifts in market dynamics driven by e-commerce and digital gifting trends. Key factors contributing to this growth include:
Support for E-commerce: The government's promotion of e-commerce as a critical economic component has indirectly supported the gift card market. The growth of online shopping has accelerated the adoption of digital gift cards, which consumers increasingly prefer.
Employee Incentives: The use of gift cards as incentives for remote employees has grown, aligning with government efforts to help businesses adapt to changing work environments.
Consumer Protection Regulations: While there have been no significant new regulations targeting the gift card sector in the past six months, existing consumer protection laws continue to play a vital role.
Consumer Rights: Regulations protect consumers when purchasing and using gift cards. This includes clear guidelines on fees, expiration dates, and redemption policies.
Digital Gift Card Regulations: As digital gift cards gain traction, regulatory bodies are expected to focus more on ensuring compliance with existing financial regulations, including cybersecurity and data protection.
Key Attributes:
Report Attribute | Details |
No. of Pages | 268 |
Forecast Period | 2024 - 2028 |
Estimated Market Value (USD) in 2024 | $6.9 Billion |
Forecasted Market Value (USD) by 2028 | $9.1 Billion |
Compound Annual Growth Rate | 7.0% |
Regions Covered | South Korea |
Scope
Closed Loop Gift Card Market Share by Key Retailers
Lotte Group
Shinsegae Co Ltd
Hyundai Department Store Co Ltd
GS Holdings Corp
SK Planet Co Ltd
BGF Retail Co Ltd
Costco Wholesale Corp
Total Spend on Gifts in South Korea
By Consumer Segment (Retail and Corporate)
By Product Categories (13 Segments)
By Retail Sectors (7 Segments)
Gift Card Market Size by KPIs across Consumer Segments in South Korea
Gross Load Value
Transaction Value
Unused Value
Average Value Per Transaction
Transaction Volume
Average Value of Card Purchased
Number of Cards
Gift Card Market Size by Consumer Segment in South Korea
Retail Consumer
Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in South Korea
By Retail Consumer
By Retail Purchase Occasion
By Corporate Consumer
By Corporate Purchase Occasion
By Company Size
Gift Card Market Size by Retail Consumer in South Korea
By Functional Attribute
By Occasion
Festivals & Special Celebration Days
Milestone Celebration
Self-Use
Other
Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in South Korea
Consumer Purchase Behaviour
Gift Card Buyer by Age Group
Gift Card Buyer by Income Level
Gift Card Buyer by Gender
Gift Card Market Size by Corporate Consumer in South Korea
By Functional Attribute
By Occasion
Employee Incentive
Sales Incentive
Consumer Incentive
By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in South Korea
Food & Beverage
Health, Wellness & Beauty
Apparel, Footwear & Accessories
Books & Media Products
Consumer Electronics
Restaurants & Bars
Toys, Kids, and Babies
Jewelry
Sporting Goods
Home & Kitchen Accessories & Appliances
Travel
Entertainment & Gaming
Other
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in South Korea
Ecommerce & Department Stores
Restaurants & Bars
Supermarket, Hypermarket, Convenience Store
Entertainment & Gaming
Specialty Stores
Health & Wellness
Travel
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in South Korea
Gift Card Online Sales
Gift Card Offline Sales
1st Party Sales
3rd Party Sales
Sales Uplift
For more information about this report visit https://www.researchandmarkets.com/r/91f1id
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900