Market Trends

Soaring Growth Anticipated in Asia-Pacific Gift Card Market Amid New Player Entry

DUBLIN, March 27, 2024 /PRNewswire/ -- An enlightening report dubbed "Asia Pacific Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" has been recently incorporated into the vast repository of ResearchAndMarkets.com. This comprehensive analysis unfolds quintessential insights into the burgeoning gift card industry within the Asia-Pacific region.

Unveiling the Gift Card Market Surge

The Asia-Pacific gift card industry is riding a wave of exponential growth with anticipated annual increases of 8.3%, propelling the market to a staggering US$235.7 billion by 2024. This upward trajectory is predicted not only to sustain but also excel with a compound annual growth rate (CAGR) of 7.2% during the period of 2024-2028. The proliferation from US$217.7 billion recorded in 2023 signifies a phenomenal surge, eyeing a market size goal of US$310.7 billion by 2028.

Companies are strategically aligning through partnerships and diving into product innovations aimed at meeting the diverse needs of various consumer demographics. Gift card platforms are not hesitating to introduce cutting-edge functionalities designed to expedite transactional processes. In light of these developments, the upcoming year is expected to witness an intensification of competition due to the advent of new market participants across the Asia Pacific ambit, thus catalyzing medium-term market growth.

Strategic Partnerships Shaping the Future

A trend that is gaining momentum is strategic collaborations that serve as a cornerstone for the expansion and innovation within the industry. One key example is the partnership between Qwikcilver, a subsidiary of Pine Labs, and the renowned food service delivery company, foodpanda. In December 2023, they announced the inception of foodpanda Gift Cards, which initially catered to foodpanda's corporate clientele in Singapore and Thailand.

However, the scope of this initiative is not limited, as plans are in motion to extend these gift cards across all 11 countries where foodpanda maintains a footprint. Given foodpanda's influence in over 400 cities and its prominence in the online food delivery and grocery segment, this collaboration is poised to fortify Qwikcilver's stature as a preeminent gift card provider in Asia Pacific.

The expectation set by industry analysts is for Indian gift card purveyors to forge ahead with myriad strategic partnerships in 2024. This strategic foresight is not merely to sharpen competitive edges but also to underpin the gift card market's expansion over the succeeding years.

Innovation Accelerating Gift Card Transactions

On a constant quest to innovate, industry players are developing and deploying unique features to satiate the growing consumer hunger for quick and easy transactions. Take, for instance, Tbay, the Singapore-based global gift card platform, which unveiled a Quick Sell Mode in December 2023. This innovation is anticipated to slash the gift card transaction time frame by a significant 20%.

In recent times, a barrage of security-centric strategies has been rolled out, aiming to bolster the secure transaction of gift cards—one of the industry's most crucial pain points. By imposing stringent requirements like extensive vendor experience and solid credit histories, these maneuvers ensure enhanced transaction security.

As we step into 2024, the online gift card marketplace is set to flourish through the adoption of such pioneering features and fortified security checks, thereby reinforcing user trust in gift cards and propelling the general market advancement for years to come.

Vietnam: A Budding Market for Gift Cards

Vietnam's gift card sector is thriving, driven majorly by a burgeoning middle-class and amplified consumer expenditure. The shift towards embracing gift cards is expected to further steam ahead in 2024, heralding an accelerated growth phase for providers in this domain.

Got It, an early entrant in the sector, has been charting a remarkable growth trajectory. To illustrate, the company witnessed revenue touches of US$6.3 million in 2022—a notable 26.8% jump from the previous year. The company is setting its sights higher for 2023, forecasting a near 49% revenue uptick within the 12-month frame.

The company attributes such growth to its foundational presence in the market since 2015. Expanding its offerings from mere offline store vouchers to encompassing web and app experiences of partner brands, Got It is venturing into the peer-to-peer gifting domain this coming year, aiming to sustain and further fuel its revenue momentum.

In the previous year, the gift card market's robust growth was propelled by a confluence of factors—an ecommerce boom, remote work employee incentives, the rise in digital gifting, and strategic initiatives spearheaded by government and industries like hospitality and travel aiming for a rebound.

Reports Tailored for Deeper Insights

Encompassing a wealth of knowledge, this bundled offering consists of one regional and ten individual country reports. Each report drills down into the fine intricacies of the gift card market at the country level:

• Regional Report - Asia Pacific Gift Card and Incentive Card Market Intelligence.
• Country Reports - Covering Australia, Indonesia, Philippines, Singapore, Thailand, China, Japan, India, South Korea, and Malaysia.

Deeper within the report's scope, detailed segments highlight various aspects such as total spend on gifts split by consumer segment (retail & corporate), product categories across 13 segments, and breakdown by seven retail sectors. The report sheds light on key performance indicators like gross load value, transaction value, unused value, and others that paint a vivid picture of the market dynamics.

The report segments the market size not only by consumer type but also by business scale, offering an acute perception of the corporate consumer's role in the digital gift card landscape. It provides a comprehensive view of gift card spends by product categories and retail sectors, both of which are further dissected to reflect retail and corporate consumer contributions. The unique behaviors and demography of gift card buyers such as age group, income level, and gender are also dissected for a thorough understanding.

Furthermore, the distribution channel's dissection reveals a segmentation split by retail and corporate consumers, selling modes, and estimated sales uplift. The report also bestows a spotlight on key retailers such as Amazon, Aldi, Woolworths, and many more that play a crucial role in the market.

For individuals and entities craving comprehensive analysis and forecasts of the Asia Pacific gift card and incentive card market, a perusal of this report promises enlightenment on the potential for strategic growth and investment. The report is accessible through a direct link: Research and Markets Report.

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In summary, as consumer preferences evolve and the digital economy continues its inexorable growth, the Asia Pacific gift card market surges ahead, fortified by strategic alliances and technological innovations that promise a flourishing trajectory. This achievement not only bolsters economic vitality but also underscores the potential for savvy players within this spirited realm.

SOURCE: Research and Markets