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 i...
Autore: Business Wire
DUBLIN: 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
Scope
Gift Card Sales Estimates by Key Retailers
Total Spend on Gifts in Indonesia
Gift Card Market Size by KPIs across Consumer Segments in Indonesia
Gift Card Market Size by Consumer Segment in Indonesia
Digital Gift Card Market Size in Indonesia
Gift Card Market Size by Retail Consumer in Indonesia
Gift Card Spend by Consumer Behavior and Demographics in Indonesia
Gift Card Market Size by Corporate Consumer in Indonesia
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Indonesia
Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers) in Indonesia
Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers) in Indonesia
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Fonte: Business Wire