DUBLIN–(BUSINESS WIRE)–The “Japan Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
According to the Q4 2021 Global Gift Card Survey, gift card industry in the country is expected to grow by 10.7% on annual basis to reach US$20188.0 million in 2022.
Despite near-term challenges in 2022, medium to long term growth story of gift cards in Japan remains strong. The gift card industry in Japan is expected to grow steadily in H1 2022 and record a strong growth in H2 2022. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 7.5% during 2022-2026.
The gift card market in the country will increase from US$18243.0 million in 2021 to reach US$26966.5 million by 2026.
The rise of digital gift card platforms leads to a decline in the value of departmental store gift card sales in Japan
In Japan, more and more consumers are shopping online for all of their requirements. This is true for gift card purchases as well. Over the last few years, there has been a consistent decline in the value of gift cards sold at departmental stores in Japan. While the trend has been further accelerated by the global pandemic, there is a general shift among consumers towards online channels for purchasing products and services in the country.
This decline in sales of gift cards at physical stores has created growth opportunities for digital gift card providers. For instance, the most prominent digital gift card marketplace in Japan, Amaten, announced that the company’s sales reached US$100 million in August 2020. Owing to this success, Amaten also announced that the firm is expanding overseas while choosing Dubai as the first overseas location to offer its services.
The publisher expects the trend to further accelerate in the country, as consumers are projected to maintain their online shopping trend even in the post-pandemic era. This will subsequently boost the growth of the digital gift card segment in the country over the next four to eight quarters.
Strong growth of the e-commerce industry is creating opportunities for gift card companies in Japan
In Japan, more than 100 million consumers are shopping online and subsequently boosting the growth of the e-commerce market in the country. It is expected that nearly 12.5 million more consumers to join the online shopping trend by the end of 2025, which will further boost the growth of the e-commerce industry in Japan.
The publisher expects the e-commerce market’s total value to exceed US$140 billion by 2025. This growth in e-commerce revenue and the continued adoption of online shopping among consumers is expected to create opportunities for gift card companies to expand their market share in Japan over the next four to eight quarters.
The ability to buy cryptocurrencies using gift cards is boosting the market growth in Japan
Another trend that is supporting the gift card market growth in Japan is the ability to buy cryptocurrencies through gift cards. Over the last few quarters, the popularity of cryptocurrencies has surged globally, and Japan is no different. This has led to the growing investment in digital coins, including Bitcoin and Ethereum.
With gift cards making it easier for consumers and investors to buy cryptocurrencies, the use of gift cards has also surged significantly over the last few quarters. Some of the platforms that allow consumers to buy cryptocurrencies using gift cards include Paxful and localbitcoins.com.
Apart from the ability to buy cryptocurrencies, payment firms are also allowing consumers to complete their purchases using cryptocurrencies through gift cards. For instance, Bitrefill is one such platform that allows consumers in Japan to convert their cryptocurrencies into gift cards at the point-of-sale transaction.
Scope
Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
- Seven & I Holdings Co Ltd
- AEON Group
- Lawson Inc
- FamilyMart Co Ltd
- Yamada Denki Co Ltd
- Rakuten Inc
- Amazon.com Inc
- Isetan Mitsukoshi Holdings Ltd
Total Spend on Gifts in Japan
- 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 Japan
- 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 Japan
- Retail Consumer
- Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)
Digital Gift Card Market Size in Japan
- 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 Japan
- By Functional Attribute
-
By Occasion1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other - Value by Purchase Channel
Gift Card Spend by Consumer Behavior and Demographics in Japan
- 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 Japan
- By Functional Attribute
-
By Occasion1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive - By Scale of Business
Gift Spend by Product Categories (Split by Retail and Corporate Consumers) in Japan
- 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 Japan
- 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 Japan
- 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/gdssu6
The content is by Business Wire. Headlines of Today Media is not responsible for the content provided or any links related to this content. Headlines of Today Media is not responsible for the correctness, topicality or the quality of the content.
