DUBLIN, May 17, 2022 /PRNewswire/ — The report “Japan Loyalty Programs Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” has been added. for from ResearchAndMarkets.com offer.
Loyalty programs market in Japan is expected to grow by 12.6% on an annual basis to reach US$10,160.8 million in 2022
In value terms, the loyalty program market in Japan recorded a CAGR of 13.0% during the period 2017-2021. The loyalty program market in Japan will continue to grow during the forecast period and is expected to register a CAGR of 11.9% during the period 2022-2026. The loyalty program market in the country will grow from US$9024.8 million in 2021 to reach $15,936.7 million by 2026.
Point cards and loyalty programs are everywhere in Japan. For several years, the rewards system has been a popular way for brands and retailers to encourage customers to become frequent buyers. Whatever form it took – plastic card, stamp card or digital app – most merchants and retailers across the country use some sort of loyalty and rewards program. This has resulted in the steady growth of the loyalty and rewards industry in Japan over the past three to four years, and the publisher expects the trend to continue in the short to medium term.
From telecommunications providers to e-commerce platforms and convenience stores, everyone is taking advantage of the growing consumer preference for loyalty programs to drive their growth and incremental revenue in Japan. Notably, hotel groups are entering into strategic partnerships with loyalty program providers to gain direct access to members, which will later help them increase their market share in the country.
In Japan, retailers of all categories, including restaurants, cafes, clothing stores, car rental agencies and many more, like to offer their customers a loyalty program. Additionally, customers of Japan want to earn points and rewards no matter where in the country they shop.
Therefore, the publisher expects retailers to experience strong growth that continues to increase their retailer network. In particular, this was one of the main reasons why the T-Point program, which was one of the best loyalty programs in the country a few years ago, fell in the rankings. The T-Point program was discontinued by several retailers in Japanwhile new loyalty programs, such as the one offered by Rakuten, have been able to register strong growth over the past three to four years as it has continuously expanded its network of partners.
Additionally, the differentiated approach to loyalty programs has also helped Rakuten become the preferred loyalty program for Japanese consumers. The publisher therefore expects that the increase in the partner network and the offer of differentiated loyalty programs will help suppliers to stimulate their growth over the next four to eight quarters.
Loyalty program providers are strengthening their network of partners to accelerate their growth in Japan
To make their program even more attractive to consumers and offer them more choices for earning and spending their loyalty points, loyalty program providers are entering into strategic partnerships with more and more brands.
- In July 2021, Rakuten announced that the company has entered into a strategic partnership with Marriott International. As part of this strategic collaboration, members of the Rakuten Loyalty Program will enjoy more benefits such as discounted member rates, the opportunity to earn more points, and other member-only benefits. On the other hand, the strategic collaboration with Rakuten will allow Marriott to directly access the more than 100 million members of the Rakuten loyalty program.
The publisher expects more strategic collaborations of this type over the next four to eight quarters, which will further strengthen the popularity of loyalty programs in Japan from a short to medium term perspective.
Global players launch their rewards program to gain market share in Japan
As the market for loyalty and rewards programs continues to grow year over year in Japanglobal rewards platforms are expanding their footprint in the country to gain more market share in the global industry.
- In October 2021Miles, one of the world’s leading rewards platforms, announced that the company is expanding its presence in the international market by launching its service in Japan. In particular, the launch of Miles in Japan further builds on the platform’s rapid growth, which now offers members 500 personalized rewards from 360 brands.
- In Japanthe market has partnered with major national brands such as Garmin, Hulu, Japan Airlines, Under Armour, Family Mart and Red Bull, among many others. Building on its success in United States market, Miles allows Japanese people to earn miles for all their trips, which can then be redeemed at partner stores across the country.
Japanese luxury car makers introduce new buy-back and loyalty programs for overseas customers
The demand for loyalty programs is growing globally, and not just in Japan. Amid these growing trends, Japanese luxury car makers are launching new buy-back and loyalty programs for their Indian customers.
- In March 2022Lexus, which celebrates its 5th anniversary in India, announced that the company is launching a new redemption and loyalty program for its customers in the country. In particular, the program is part of the firm’s anniversary celebrations in Indiaas it completes five years since its arrival in the country.
The publisher expects more such loyalty program launches by Japanese brands in the global market in 2022 and beyond.
Japan Loyalty Spending Market Size and Future Growth Dynamics by Key Performance Indicators, 2017-2026
Japan Loyalty Spending Market Size and Future Growth Dynamics by Functional Areas, 2017-2026
- Loyalty programs
- Loyalty platforms
Japan 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
Japan loyalty spending market size and future growth dynamics by channel, 2017-2026
Japan loyalty spending market size and future growth dynamics by key sectors, 2017-2026
- Financial services
- health and wellbeing
- Restaurants and food delivery
- Travel and hospitality (taxis, hotels, airlines)
- Media and entertainment
Japan 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
Japan Loyalty Spending Market Size and Future Growth Dynamics by Accessibility, 2017-2026
- Access by card
- Digital access
Japan Loyalty Spending Market Size and Future Growth Dynamics by Consumer Type, 2017-2026
- B2C consumers
- B2B consumers
Japan Loyalty Spending Market Size and Future Growth Dynamics by Loyalty Platforms, 2017-2026
Japan loyalty spending market size and future growth dynamics by software platform, 2017-2026
- Custom built platform
- Ready-to-use platform
Japan loyalty spending market size and forecast by demographics and consumer behavior, 2021
- By age group
- By income level
- By gender
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