2020 Foresight: Private Label Cards – Opportunities and Challenges in Asia-Pacific

Date: 24-Jun-2013
Private-Label Cards (PLC) have emerged as a lucrative investment tool for a range of organizations and retail stores in Asia-Pacific. The PLC sector has recorded substantial growth over the last five years across key markets, although it is still in a nascent stage in comparison with the overall cards and payments industry. The growth is currently being driven by prepaid cards, and this is expected to continue over the coming five years. Taking its cue from western counterparts, with the exception of a few markets, the sector in the Asia-Pacific region has maintained a safe distance from private-label credit instruments.


Prepaid cards, mainly led by gift cards, will help the PLC sector to expand in Asia-Pacific. Retail and phone, and transit – two of three key end markets – are heavily dependent on prepaid cards for revenue generation. Fuel and fleet – the third key market – is also investing in prepaid cards for individual consumers, as the number of personal vehicles on the road has grown significantly in the last five years due to rising income levels and urban expansion. The number of issuers offering credit cards, however, will continue to fall as risk levels rise and the number of customers choosing them falls.


Retailers have started to use analytics to their advantage, and the structures use of customer information has enabled them to develop effective strategies, such as exclusive offers tailored for particular cardholders for important occasions in their lives. This not only increases sales potential but also builds a strong customer relationship. Issuers are also extending the benefits of analytics to their customers.



The PLC sector in the Asia-Pacific region is targeting specific consumer markets on the basis of their attitude and behavior. There is a strong focus on targeting premium consumers with a greater affinity towards lifestyle and fashion products. However, the food and leisure sectors have also emerged as favorites in the sector, while issuers such as Woolworths are looking to attract budget-conscious buyers.


Reasons to buy

Gain an overall knowledge of the industry structure and competitive landscape in such countries as Singapore, Australia and China.

Understand the market by reading through an analysis of the consumer segmentation and product strategies by end market.

Get ahead of your competitors by understanding their sales and distribution strategies.


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