Dublin, May 16, 2022 (GLOBE NEWSWIRE) -- The "South Korea 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 South Korea is expected to grow by 12.0% on annual basis to reach US$ 6307.7 million in 2022
In value terms, the Loyalty Programs Market in South Korea has recorded a CAGR of 12.5% during 2017-2021. The Loyalty Programs Market in South Korea will continue to grow over the forecast period and is expected to record a CAGR of 11.4% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 5631.6 million in 2021 to reach US$ 9703.7 million by 2026.
With the consumers' needs becomingly increasingly diverse over the last two years, brands and retailers across different industries have started to offer loyalty points to their customers in South Korea. This has resulted in strong growth in the loyalty programs industry in South Korea, and the trend is expected to continue in the country from the short to medium-term perspective.
From e-commerce platforms to offline retail stores and car manufacturers, more and more brands are taking advantage of the growing loyalty program landscape in South Korea. In the midst of this strong growth in the loyalty programs industry, along with the rise of new technology such as blockchain, firms are launching innovative blockchain-powered rewards programs for their customers in the country.
The loyalty and rewards programs industry in South Korea is one of the more mature ones as compared to some of the other Asian markets, such as India. The publisher expects a lot more innovation to take place in the South Korean loyalty landscape over the next four to eight quarters, which will subsequently drive the growth of the loyalty and rewards programs industry in the country.
In South Korea, Dodo Point, the loyalty platform of South Korean startup Spoqa, is one of the leading players in the loyalty and rewards programs industry. Launched in 2012, the platform has more than 25 million users. Available across 20,000 offline affiliate stores, the loyalty platform is targeting retail stores to gain more market share in the country.
Through its innovative loyalty platform, the firm aims at simplifying the loyalty point's redemption process by eliminating the need for physical loyalty stamps. Apart from Dodo Point, several other South Korean brands, such as Samsung and Hyundai, also have their respective loyalty programs offerings not just in the country but also in the global markets.
Loyalty platforms are turning to blockchain, allowing members to earn crypto in South Korea
To make the loyalty platform more rewarding for consumers in South Korea, firms are partnering with a blockchain project whose goal is to return control of data privacy and monetization back 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 which aims to return control of data privacy and monetization back to consumers. Under the strategic collaboration, consumers who share their data with Carry Protocol are rewarded in CRE tokens, which can then be redeemed for merchandise 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 for consumers in South Korea.
Blockchain-powered rewards startups are entering into strategic partnerships to expand their 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 rewards platforms. These startups are now entering into strategic partnerships to get access to millions of consumers and boost their growth.
- In May 2020, MiL.k, the blockchain-powered rewards platform, announced that the firm had entered into a strategic partnership with Shinsegae Duty Free, a Seoul-based luxury retail space chain, to provide loyalty point compatibility and management. The strategic collaboration will allow Shinsegae customers to connect their existing rewards accounts to the mobile application offered by MiL.k.
- Once the users have connected their accounts, consumers can trade their Shinsegae loyalty points for the MLK cryptocurrency, which can then be exchanged for reward points at other partnering vendors, including Yanolja, one of the leading travel accommodation platforms in South Korea. Similar trends have been seen in the global market, wherein Rakuten, in Japan, enabled its customers to exchange the loyalty points for three major cryptocurrencies - Bitcoin, Ether, and Bitcoin Cash.
Government is boosting consumer spending through cashback reward programs
The global pandemic outbreak meant that consumers adopted a conservative approach when it came to spending on products and services. However, this consumer behavior towards spending had a direct impact on the South Korean economy. To boost economic recovery in the country, the government has launched a cashback reward program that promotes consumer spending.
- In September 2021, the South Korean government announced a cashback rewards program for card spending in October 2021. Notably, the government launched the campaign in an effort to boost private spending amid the fourth Covid-19 wave.
- The cashback rewards scheme launched by the government for a two-month period will allow consumers to receive up to 100,000 won per month if their card spending exceeds 3% of their monthly average use in Q2 2021. For the rewards program, the government earmarked 700 billion won in its budget.
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains, 2017-2026
- Loyalty Schemes
- Loyalty Platforms
South Korea 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
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Channel, 2017-2026
South Korea 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
South Korea 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
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Card Based Access
- Digital Access
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C Consumers
- B2B Consumers
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
South Korea Loyalty Spend Market Size and Future Growth Dynamics by Software Platforms, 2017-2026
- Custom Built Platform
- Off the Shelf Platform
South Korea Loyalty Spend Market Size and Forecast by Consumer Demographics & 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).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate loyalty strategy; assess market specific key trends, drivers, and risks in the industry.
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