DUBLIN, May 19, 2022 /PRNewswire/ — The “Asia Pacific Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
Loyalty Programs Market in Asia Pacific is expected to grow by 12.9% on annual basis to reach US$ 48138.9 million in 2022
In value terms, the Loyalty Programs Market in Asia Pacific has recorded a CAGR of 13.3% during 2017-2021. The Loyalty Programs Market in Asia Pacific will continue to grow over the forecast period and is expected to record a CAGR of 12.5% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 42622.8 million in 2021 to reach US$ 76982.1 million by 2026.
Loyalty and reward programs are gaining market share in the Asia Pacific region. A large population, rapid digitalization, and consumers’ inclination towards rewards programs primarily supported the strong market growth in this region.
In the last two to three years, key economies such as India, China, Indonesia, and Singapore witnessed substantial demand for loyalty and rewards programs. Moreover, rising fintech start-ups are also expanding their market share through innovative product launches in this category. Consequently, the publisher expects the market to record strong growth in 2022.
In the last two to three years, the e-commerce market experienced rapid growth in China, and along with the growth of the online market, the loyalty and rewards programs industry also surged significantly in the country. Notably, e-commerce platforms across different product categories started offering loyalty programs to gain increasing market share and revenue. These programs provided good results to e-commerce players when compared to western standards.
As the trend in online shopping continued to gain momentum during the last decade, the adoption of loyalty and rewards programs also gained widespread popularity in the country. This trend is expected to continue as global and local brands continue to seek loyalty and rewards programs as a differentiation factor in their strategy further.
Quick-service restaurants are launching green rewards programs to expand their market share in China
To promote a more sustainable lifestyle and attract consumers who are driven by eco-friendly brands, quick-service restaurants are launching green rewards programs that incentivize consumer behaviours.
- In December 2021, KFC China announced that it is launching a three-week green rewards program that encourages and incentivizes the behavior of consumers that helps in reducing carbon reduction. Some of the actions for which KFC China is rewarding customers include mobile ordering, opting out of using disposable cutlery, waste ordering, reducing food waste, and in-store pickup.
- For these actions, KFC China is offering green points that customers can use for receiving special coupons. Notably, the quick-service restaurant launched the rewards program in all of the 7,900 stores across China and was accessible to the more than 320 million KFC members in the country. During the three-week campaign in December 2021, over 28 million members participated in the rewards program, which helped in a total carbon reduction of 145 tons of CO2 equivalent.
In India, loyalty and reward programs have been used as strategies by brands and organizations, especially in the hospitality, tourism, aviation, and retail sectors. Presently, with the global economic slowdown, businesses, in order to retain their customers and ensure profit generation, have adopted customer relationship management techniques with a more aggressive approach to sustain profitable long-term relationships. Therefore, loyalty programs are gaining popularity due to their ability to establish relationships with customers, drive product usage, repeat sales, and, most significantly, customer retention in India.
Credit card providers are partnering with grocery stores to launch loyalty programs
With the shift in lifestyle preferences and increasing disposable income, consumers are looking for premium products and experiences. Therefore, premium cards are being launched, signifying a significant share in overall spending, which is an indication of consumers’ increasing affinity toward the premium lifestyle.
- In March 2022, SBI Card entered into a partnership with an Indian premium grocery store brand, Nature’s Basket, to launch ‘Nature’s Basket SBI Card.’
- Through this card (all variants), customers will earn up to 20 Reward Points on every Rs. 100 spent at Nature’s Basket stores and up to 10 Reward Points on every Rs. 100 spent on dining, movies, and international travel.
- Together with this, the cardholders will be able to enjoy benefits such as complimentary BookMyShow movie tickets, Taj gift vouchers, Nature’s Basket welcome gift vouchers, and also access to higher tiers of the Nature’s Basket loyalty program.
- Additionally, Nature’s Basket SBI Card Elite offers customers exclusive check-out counters at Nature’s Basket stores and concierge assistance to address customers’ requirements around flower delivery, gift delivery, and online doctor consultation.
The publisher expects that since India’s premium consumer segment is showing strong potential for growth, the exclusive benefits for the SBI card loyal customers are likely to be retained by the company over the longer run.
With the global shakeups due to Covid-19, many businesses had to embrace different strategies to retain their customers and expand their market share in Indonesia. Moreover, According to the Q1 2022 Global Loyalty and Rewards Market Survey, around 60% of these businesses invested substantially in their digital transformation and customer retention strategies in Indonesia. Consequently, loyalty and programs became one of the most used techniques during this period. Additionally, loyalty programs also went through a digital transformation over the last two years, just like the businesses.
Indonesian B2B rewards and loyalty providers are attracting investments
With the businesses seeing all-time lows, companies are hyper-focused on loyalty programs to capture new customers and retain the existing customers. Therefore, loyalty and CRM management companies are attracting funds in the country.
- In March 2022, Aldmic Technology, an Indonesia-based digital voucher start-up, raised Series A funding from South Korea-based Coop Marketing, the company behind Kakao Gift.
- Notably, the company provides gifts vouchers that can be purchased by companies and distributed to their employees as part of a loyalty program. Specifically, this company, through its expertise, helped develop Samsung Gifts Indonesia, the rewards program of the company.
With the loyalty programs helping keep customers engaged and turning positive ROI for companies, the publisher expects these B2B loyalty companies to attract more investments over the next four to eight quarters in the country.
Country reports in this bundled offering provide in-depth analysis of social commerce
Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026
- Point-based Loyalty Program
- Tiered Loyalty Program
- Subscription Loyalty Program
- Perks Loyalty Program
- Coalition Loyalty Program
- Hybrid Loyalty Program
Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors, 2017-2026
- Financial Services
- Healthcare & Wellness
- Restaurants & Food Delivery
- Travel & Hospitality (Cabs, Hotels, Airlines)
- Media & Entertainment
Loyalty Spend Market Size and Future Growth Dynamics by Retail, 2017-2026
- Diversified Retailers
- Department Stores
- Specialty Stores
- Clothing, Footwear & Accessories
- Toy & Hobby Shops
- Supermarket and Convenience Store
- Home Merchandise
Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
For more information about this report visit https://www.researchandmarkets.com/r/t8bc0p
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