DUBLIN, March 25, 2024 /PRNewswire/ — The “Indonesia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.
Gift card industry in Indonesia is expected to grow by 10.1% on annual basis to reach US$2.2 billion in 2024. The gift card industry in Indonesia will continue to grow over the forecast period and is expected to record a CAGR of 8.9% during 2024-2028. Gift card market in the country will increase from US$2.0 billion in 2023 to reach US$3.0 billion by 2028.
The booming e-commerce market, coupled with improved digital payments infrastructure, will support the growth of the gift card industry in Indonesia over the medium term. To tap into the lucrative growth market, global firms are forging strategic alliances to launch new products in the country. This will further aid the adoption and drive the competitive landscape in 2024.
The slowdown in the global economy resulted in some players exiting the Indonesian gift card market in 2023. This is part of the strategy to increase their focus on other core markets to drive growth during the economic downturn. In 2024, however, the recovery of the broader market in Indonesia is expected, which will result in better growth opportunities for global gift card providers. Overall, the publisher maintains a positive outlook for the Indonesian gift card market over the next three to four years.
Fave exits the Indonesian gift card market to better focus on its core markets amid economic downturn
Fave, one of the leading fintech firms and gift card providers in the Southeast Asia market, revealed that it is exiting the Indonesian market in 2023. This is part of the firm’s strategy to better focus on its core markets of Singapore and Malaysia. Furthermore, it also plans to expand operations in India over the medium term. Fave, notably, ended operations in Indonesia in April 2023. The firm also advised its customers to redeem their gift cards and vouchers by May 31. While Fave exited the Indonesian market, it revealed that it will continue to serve the customers through its sister firm Qwikcilver, which offers B2B gift card solutions. Qwikcilver, notably, is a subsidiary of Pine Labs. Pine Labs also acquired Fave in 2021 in a US$45 million deal.
Global firms are expected to enter into strategic partnerships to strengthen their position in the Indonesian market
The gift card market is poised for strong growth over the medium term in Indonesia. The rising uptake of gift cards is offering lucrative growth opportunities to global gift card providers in the Indonesian market. To tap into the growth market, firms are expected to enter into strategic partnerships to launch new products and expand their distribution network over the next 12 months. The strategy has been previously adopted by global firms like Blackhawk Network in Indonesia.
Blackhawk Network, for instance, entered into a strategic collaboration with Shanghai Moonton Technology to launch the firm’s first gift card solution in the Indonesian market in 2022. Furthermore, the firm also partnered with Sony Interactive Entertainment to launch gift card solutions in Indonesia in 2021.
From the short to medium-term perspective, the publisher expects more such strategic collaborations to emerge in the Indonesian market, as more retailers are planning to offer their customers with new payment tools. This will aid the competitive landscape in the sector, thereby also supporting the growth of the industry over the next three to four years in Indonesia.
Reasons to buy
- In-depth understanding of gift card and incentive card market dynamics: Understand market opportunity, key trends and drivers along with five-year forecast (2019-2028) for gift cards and incentive cards in Indonesia.
- Develop market specific strategies: Identify growth segments and target specific opportunities across consumer segments and occasions to formulate your gift cards strategy; assess market specific key trends and risks.
- Get insights into consumer attitude and behaviour in Indonesia: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through gift cards for both retail and corporate consumers.
- Get complete perspective through six essential KPIs: number of cards in circulation, load value, unused value, average purchase value, average value per transaction, and value of transactions.
- Distribution channel insights: Understand gift cards sales dynamics by channels – online vs offline and by 1st party vs 3rd party sales.
Scope
Gift Card Sales Estimates by Key Retailers
- Indomaret
- Alfamart
- Carrefour
- Matahari Department Store
- Alfa Midi
- Super Indo
- Erafone
- Transmart Carrefour
- Hypermart
Total Spend on Gifts in Indonesia
- 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 Indonesia
- 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 Indonesia
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Indonesia
- 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 Indonesia
- By Functional Attribute
- By Occasion
- Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Indonesia
- 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 Indonesia
- By Functional Attribute
- By Occasion
- By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Indonesia
- 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 Indonesia
- 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 Indonesia
- 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/j02ezg
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