China Loyalty Programs Market Intelligence Report 2022: Chinese Consumers Are Comfortable Sharing Their Data Compared to Consumers in Other Markets – ResearchAndMarkets.com

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DUBLIN–(BUSINESS WIRE)–The “Data Book on Market Intelligence and Future Growth Dynamics of Loyalty Programs in China – Over 50 KPIs on Loyalty Program Trends by End-Use Sectors, Operational KPIs, Sales Product Dynamics in Retail and Consumer Demographics – Q1 2022 Update” report has been added to from ResearchAndMarkets.com offer.

China Loyalty Programs Market Expected to Grow 13.5% YoY to $17,821.7 Million in 2022

In terms of value, the loyalty program market in China recorded a CAGR of 13.7% during the period 2017-2021. The loyalty program market in China will continue to grow during the forecast period and is expected to register a CAGR of 13.0% during the period 2022-2026. The loyalty program market in the country will grow from US$15702.3 million in 2021 to reach US$29105.5 million by 2026.

Over the past two or three years, the e-commerce market has grown rapidly in China, and along with the growth of the online market, the loyalty and rewards program industry has also grown significantly in the country. Notably, e-commerce platforms of different product categories have started offering loyalty programs to gain increasing market share and revenue. These programs have provided good results to e-commerce players compared to Western standards.

As the trend of online shopping has continued to gain momentum over the past decade, the adoption of loyalty and rewards programs has also grown in popularity in the country. This trend is expected to continue as global and local brands continue to seek loyalty and rewards programs as a differentiator in their strategy.

In China, increasing adoption of loyalty and rewards programs across different industries is also driving the market growth. From retailers to quick service restaurants and airlines, all offer loyalty and rewards programs to attract new customers while driving their growth in the country. Notably, global brands, such as KFC and Starbucks, have also launched their loyalty programs to compete with local brands in China.

Moreover, a global payment provider such as Visa is also one of the major players in China’s loyalty and rewards industry. Other than that, global loyalty and rewards program providers such as My Rewards are looking to expand their footprint in China. The publisher expects the entry of these global loyalty and rewards providers to further intensify competition in the Chinese market in the short to medium term.

Quick-service restaurants launch green rewards programs to boost market share in China

To promote a more sustainable lifestyle and attract consumers driven by eco-friendly brands, quick-service restaurants are launching eco-friendly rewards programs that encourage consumer behaviors.

  • In December 2021, KFC China announced that it was launching a three-week green rewards program that encourages and incentivizes consumer behavior that helps reduce carbon emissions. Some of the actions that KFC China rewards customers for include mobile ordering, refusing to use disposable cutlery, ordering waste, reducing food waste and picking up in store.

  • For these actions, KFC China offers green points that customers can use to receive special coupons. Notably, the quick-service restaurant launched the rewards program in all 7,900 stores across China and was accessible to more than 320 million KFC members in the country. During the three-week campaign in December 2021, more than 28 million members participated in the rewards program, which contributed to a total carbon reduction of 145 tonnes of CO2 equivalent.

Chinese air service providers launch loyalty programs worldwide

The global pandemic outbreak has severely affected the aviation industry over the past two years. However, as the impact of the pandemic begins to diminish around the world, suppliers are looking to capitalize on pent-up demand to drive recovery and growth in China. Consequently, the country’s air service providers are launching loyalty programs globally. For example,

  • In September 2021, China Eastern Airlines announced the launch of a new loyalty program, Eastern Miles Membership. As part of the new loyalty program, the company is offering flyers with a membership upgrade offer, a new points accumulation system, a new points redemption method, a new series of products and a new service platform.

  • In addition, the new loyalty program launched by China Eastern Airlines also addresses the most common concern of travelers around the world: the validity of their accumulated points. Notably, the loyalty program will extend the validity of their points from the first three years to a long-term rolling effect. Points will only be invalid after being consecutively inactive for more than three years. During this period, the points accumulated by the travelers will remain valid and can be exchanged if necessary by the traveler.

Chinese consumers are comfortable sharing their data compared to consumers in other markets

While consumers are increasingly wary of how brands and companies use their data in countries like Australia, Brazil, the United States and the United Kingdom, consumer behavior in China is more opposite.

According to the Q1 2022 Global Loyalty and Rewards Market Survey, Chinese consumers are comfortable sharing personal data with brands and companies. This is mainly because consumers are looking for a more personalized loyalty program based on their transactional data.

Notably, brands and businesses can leverage this consumer behavior to deliver a more seamless and personalized loyalty program to meet the expectations of Chinese consumers, enabling them to further boost their growth in the country.

Scope

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

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

  • Loyalty programs

  • Loyalty platforms

China 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

China Loyalty Spending Market Size and Future Growth Dynamics by Channel, 2017-2026

China 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

China 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

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

  • Access by card

  • Digital access

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

  • B2C consumers

  • B2B consumers

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

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

  • Custom built platform

  • Ready-to-use platform

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

  • By age group

  • By income level

  • By gender

For more information on this report, visit https://www.researchandmarkets.com/r/n3dr8n

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