South Korea Loyalty Program Market Information Report


Dublin, May 16, 2022 (GLOBE NEWSWIRE) — The “Databook on market intelligence and future growth dynamics of loyalty programs in South Korea – Over 50 KPIs on loyalty program trends by end-use sectors, operational KPIs, product dynamics of Retail and Consumer Demographics – Q1 2022 Update” report has been added to from ResearchAndMarkets.com offer.

South Korea Loyalty Programs Market Expected to Grow 12.0% YoY to US$6,307.7 Million in 2022

In terms of value, the loyalty program market in South Korea recorded a CAGR of 12.5% ​​during the period 2017-2021. The South Korea loyalty program market will continue to grow during the forecast period and is expected to register a CAGR of 11.4% during the period 2022-2026. The loyalty program market in the country will grow from US$5631.6 million in 2021 to reach US$9703.7 million by 2026.

As consumer needs have become more diverse over the past two years, brands and retailers in different industries have started offering loyalty points to their customers in South Korea. This has led to strong growth in the loyalty program industry in South Korea, and the trend is expected to continue in the country in the short to medium term.

From e-commerce platforms to offline retail stores and automakers, more and more brands are taking advantage of South Korea’s growing loyalty program landscape. Amid this strong growth in the loyalty program industry, along with the rise of new technologies such as blockchain, companies are launching innovative blockchain-powered rewards programs for their customers in the country.

South Korea’s loyalty and rewards industry is one of the most mature compared to some of the other Asian markets, such as India. The publisher expects many more innovations to occur in the South Korean loyalty landscape over the next four to eight quarters, which will subsequently drive the growth of the loyalty programs industry. and awards in the country.

In South Korea, Dodo Point, the loyalty platform of South Korean startup Spoqa, is one of the major players in the loyalty and rewards program industry. Launched in 2012, the platform has more than 25 million users. Available in 20,000 offline affiliate stores, the loyalty platform targets retail stores to gain more market share in the country.

Through its innovative loyalty platform, the company aims to simplify the process of redeeming loyalty points by eliminating the need for physical loyalty stamps. Apart from Dodo Point, several other South Korean brands, such as Samsung and Hyundai, also offer their respective loyalty programs not only in the country but also in global markets.

Loyalty Platforms Turn to Blockchain, Allowing Members to Earn Crypto in South Korea

To make the loyalty platform more rewarding for consumers in South Korea, the companies are partnering with a blockchain project whose goal is to return control of privacy and data monetization to consumers in the country.

  • In July 2020, Dodo Point announced that it had entered into a strategic collaboration with Carry Protocol, the blockchain project that aims to return control of privacy and data monetization to consumers. As part of this strategic collaboration, consumers who share their data with Carry Protocol are rewarded with CRE tokens, which can then be exchanged for commodities or cashed out through a crypto exchange.

The publisher expects loyalty platforms to enter into more such strategic partnerships over the next two to three years, which will make their platforms more attractive to consumers in South Korea.

Blockchain-powered rewards startups strike strategic partnerships to expand market share in South Korea

A growing number of startups have started adopting blockchain technology to develop and launch innovative products. In South Korea, startups are also using blockchain technology to develop reward platforms. These startups are now entering into strategic partnerships to reach millions of consumers and boost their growth.

  • In May 2020, MiL.k, the blockchain-based rewards platform, announced that the company had entered into a strategic partnership with Shinsegae Duty Free, a Seoul-based luxury retail chain, to ensure compatibility and management of loyalty points. The strategic collaboration will allow Shinsegae customers to connect their existing rewards accounts to the mobile application offered by MiL.k.
  • Once users have connected their accounts, consumers can redeem their Shinsegae loyalty points for MLK cryptocurrency, which can then be redeemed for reward points from other partner vendors, including Yanolja, one of major travel accommodation platforms in South Korea. Similar trends were seen in the global market, where Japan’s Rakuten allowed its customers to redeem loyalty points for three major cryptocurrencies – Bitcoin, Ether, and Bitcoin Cash.

Government stimulates consumer spending with cashback programs

The global pandemic outbreak has meant that consumers have taken a conservative approach when it comes to spending on products and services. However, this consumer spending behavior has had a direct impact on the South Korean economy. To spur economic recovery in the country, the government has launched a cash back program that encourages consumer spending.

  • In September 2021, the South Korean government announced a cash rewards program for card spending in October 2021. Notably, the government launched the campaign with the aim of boosting private spending amid the fourth wave of Covid -19.
  • The cashback rewards program launched by the government for a period of two months will allow consumers to receive up to 100,000 won per month if their card spending exceeds 3% of their average monthly usage in the second quarter of 2021. For the program rewards, the government has allocated 700 billion won in its budget.

Scope

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Functional Areas, 2017-2026

  • Loyalty programs
  • Loyalty platforms

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Loyalty Program Type, 2017-2026

  • Points-based loyalty program
  • Tiered Loyalty Program
  • Subscription Loyalty Program
  • Loyalty program
  • Coalition Loyalty Program
  • Hybrid Loyalty Program

South Korea loyalty spending market size and future growth dynamics by channel, 2017-2026

South Korea loyalty spending market size and future growth dynamics by key sectors, 2017-2026

  • Retail
  • Financial services
  • health and wellbeing
  • Restaurants and food delivery
  • Travel and hospitality (taxis, hotels, airlines)
  • Telecoms
  • Media and Entertainment
  • Others

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Retail, 2017-2026

  • Diversified retailers
  • Department stores
  • Specialty stores
  • Clothing, shoes and accessories
  • Toy and hobby stores
  • Supermarket and Convenience Store
  • home products
  • Other

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Accessibility, 2017-2026

  • Access by card
  • Digital access

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Consumer Type, 2017-2026

  • B2C consumers
  • B2B consumers

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026

South Korea Loyalty Spending Market Size and Future Growth Dynamics by Software Platform, 2017-2026

  • Custom built platform
  • Ready-to-use platform

South Korea Loyalty Spending Market Size and Forecast by Demographics and Consumer Behavior, 2021

  • By age group
  • By income level
  • By gender

Reasons to buy

  • In-depth understanding of Loyalty Programs market dynamics: Understand market opportunities and key trends along with forecast (2017-2026).
  • Overview of Opportunities by End-Use Sectors – Obtain market dynamics by end-use sectors to assess emerging opportunities in various end-use sectors.
  • Develop market-specific strategies: identify growth segments and target specific opportunities to formulate a retention strategy; assess key market-specific trends, drivers and risks in the industry.

For more information on this report, visit https://www.researchandmarkets.com/r/19jw16


        
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