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
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