DUBLIN--(BUSINESS WIRE)--The "Malaysia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast (2015-2024) - Covid-19 Update Q2 2020" report has been added to ResearchAndMarkets.com's offering.
This report details the impact of economic slowdown along with change in business and consumer sentiment due to disruption caused by Covid-19 outbreak on gift card industry in Malaysia.
Despite near-term challenges, medium to long term growth story of gift cards in Malaysia remains strong. The gift card industry in Malaysia will continue to grow over the forecast period and is expected to record a CAGR of 16.1% during 2020-2024. The gift card market in the country will increase from US$ 1,015.0 million in 2019 to reach US$ 1,846.6 million by 2024.
Historically, the gift card market in Malaysia has recorded a steady growth with a CAGR of 19.6% during 2015-2019. However, According to the Q2 2020 Global Gift Card Survey, gift card market in Malaysia is expected to be impacted across retail and corporate segments due to disruption caused by Covid-19 outbreak.
Though growth of gift card industry will be impacted due to pandemic, there are certain segments such as self-use which will gain significant market share. Adoption of e-Gift cards is also expected to increase significantly over the next 4-6 quarters. There are interesting trends emerging across various segments, which are expected to fundamentally reshape gift card industry dynamics.
Growth in the gift card industry can be attributed to the overall growth of e-commerce business, corporate rewards program and gig economy payments in the country.
In 2020, the e-commerce market is expected to rise by over 25%, which will also support the growth of the gift card industry in the country. The Malaysian government is giving a thrust to the country's cashless society by introducing e-Tunai Rakyat initiative, which aims to provide the much-needed impetus to e-wallet adoption.
The program, launched in January 2020, is part of the government's Shared Prosperity Vision 2030 (SPV2030) agenda whose goal is to make digital technology accessible for all. With more than 32 million internet users in the country, the rising adoption of gift cards to make purchases online will drive the market's growth. Leading global players such as Google Play gift cards have already established presence in Malaysia.
In October 2019, 7-Eleven Malaysia in partnership with InComm and Razer launched its point-of-sales activated (POSA) gift cards in Eastern part of Malaysia. These gift cards can be used to buy a range of products and services such as JOOX, Netflix, Spotify Premium, Zalora, KKBox, Sony Play Station, and Starbucks.
Another emerging trend of freelancers accepting payments through gift cards in Malaysia will drive the growth of the market in the coming years. With the ability to buy bitcoins using gift cards, is also boosting the growth of the gift card industry. Some of the third-party service providers such as paxful.com and localbitcoins.com, allows users to trade bitcoins for gift cards in Malaysia.
Corporate spending on gift cards is also increasing in the country, as companies are finding it as an efficient tool to offer rewards and incentives to their employees during holidays and to appreciate their hard work. Businesses are also opting for Charity gift cards to increase their CSR activities and to encourage their employees to give back to the society. Some of the popular third-party gift card providers in the country includes giftvoucher.my, giftr.my and popular.com.my.
This report provides a detailed data centric analysis of gift cards and corporate incentive cards market along with consumer behaviour and retail spend dynamics in Malaysia. With over 200 KPIs at country level, this report provides comprehensive understanding of gift and incentive card market dynamics.
Below is a summary of country level trend analyses covered across gift card segments:
- Total gift market: This report provides detailed view of overall spend on gifts, broken down by retail and consumer segments. For both retail and consumer segments, this report provides a breakdown of spend on gifts by product categories (13 segments) and retail sectors (7 segments).
- Gift cards: Drawing from proprietary survey results, this report provides in-depth analysis of opportunities in both open loop and closed loop prepaid gift card categories. Assesses consumer behaviour by type of consumer (retail and corporate - SMB, Mid-Tier, Large Enterprise), gifting occasion, digital gift card (e-gift card), and market share by retail sectors.
- Details six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Corporate incentive & loyalty cards: This report provides detailed market dynamics of corporate incentive cards, broadly segmented in three categories - consumer incentive card, employee incentive card, and sales/partner incentive card. It details market size and forecast at category level, by functional attribute (open loop and closed loop), and by corporate consumer segments (small scale business, mid-size business, and enterprise business).
- Digital gift card (e-gift card) analysis: Provides market size and forecast for digital gift cards, broken down by retail and corporate buyers. It also includes gift card spend by occasion (retail - festivals & special celebration days, milestone celebration, self-use, other; Corporate incentive cards -consumer incentive card, employee incentive card, and sales/partner incentive card). The report also includes digital gift card adoption by company size.
- Open loop and closed loop: Provides market estimates and forecasts to assess opportunities in open loop and closed loop gift and incentive card segments across consumer segments.
- Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key KPIs related to gift card dynamics including spend by age, gender, and income level.
- Retail spend: Breaks down retail spend across retail sectors (7 segments) to provide detailed insights on consumer behaviour and changing dynamics of gift card spend.
- Market share by retailer: Provides market share of closed loop gift cards by key retailers in Malaysia.
- Distribution channel analysis: Provides market share by distribution channel - online vs offline sales and 1st party vs 3rd party sales (sales through outlet of other retailers).
For more information about this report visit https://www.researchandmarkets.com/r/ynb7h6