The size of the Malaysian market for the gift industry is estimated to be between US $ 1 trillion and 3 trillion (RM 4.1 to 12.4 trillion), which is one-third the size of the market in Japan. This is according to Ryo Okubo, COO of Giftee Malaysia, a subsidiary of giftee Inc of Japan.
This demand for gifts is largely driven by the many festivities celebrated in our culturally diverse landscape, from Hari Raya to Chinese New Year and Christmas. It therefore presents a great opportunity for e-gifts, further accelerated by the pandemic, as more Malaysians welcome digital transactions as the norm, from e-commerce to e-wallets.
“We have noticed that digital donation has not been widely adopted in Malaysia so far. However, Giftee Malaysia has a lot of potential to enter the market with the advantage of being the first to arrive, ”said Ryo.
So, to make their presence known, they have already partnered with 16 popular F&B brands in Malaysia, including Secret Recipe, Starbucks, Tealive and llaollao.
A digital gift card
Currently, Giftee Malaysia has launched 2 of the 4 solutions available in Japan: eGift System (eGift) and giftee for Business.
eGift recalls the physical experience of purchasing a Starbucks gift card for a friend who can then go to a physical Starbucks branch to claim their drink, regardless of the value of the card.
Giftee Malaysia is essentially digitizing this transaction. On their site, giveaways can purchase an eGift and personalize a digital card with a message. Once the payment has been made, the donor sends a unique link to the recipient of the gift, who can, for example, claim their Frappuccino in store.
However, the recipients themselves do not need to be physically present at the store for the redemption, which means someone else can do it on their behalf.
Ryo also added, “They have the option of having the gift delivered if these brands are available on a third-party delivery platform such as GrabFood or foodpanda, or their own delivery service. “
With virtual gift cards, businesses can eliminate the printing of physical coupons and gift cards. It also makes it easier to track and manage their inventory of how many gifts or prepaid products have already been claimed.
Meanwhile, giftee for Business is working for the B2B marketplace by allowing businesses to send eGifts to customers as campaign giveaways or as rewards for completing a survey. Think about those free Subway cookies you would get by taking a survey through the link on your sandwich receipt.
The team noted that this system is currently used by more than 100 companies in the banking, consumer electronics, insurance and Internet industries. Some names include Maybank, Prudential, Samsung, and Lazada, who use these electronic vouchers to help them with their marketing and promotional activities.
Support brands in their digitalization journey
As the country embarks on its Malaysian digital economy project to transform Malaysia into a high-income, digitally-driven nation, local businesses are also evolving. To meet the changing needs of consumers during the pandemic, Giftee Malaysia believes it has an important role to play.
In the case of Secret Recipe which provides its cakes to consumers for birthdays and the like, sending an e-gift to a loved one with an e-card can recreate the experience. Perhaps this is an experience families have missed due to AGC restrictions.
Although Giftee Malaysia works primarily with the catering and catering industry for electronic gifts, it does not turn a blind eye to other potential industries. F&B was a starting point because it is an easier market to enter with the right strategies.
Once Giftee Malaysia’s platform gains the trust of consumers and businesses, Ryo hopes to expand its offerings in the form of experiences. For example, spa treatments as wedding gifts or scuba diving trips for friends who love the outdoors.
You could say that eGift is a lot like the old Groupon, without having to print your voucher as proof of purchase.
“For our Giftee for Business solution, this is industry independent, as companies across a wide range of industries typically engage in marketing and promotion activities and can leverage our e-giveaways to improve engagement in their campaigns or show their appreciation. to their own clients and clients in a hassle-free manner, ”added Ryo.
In Japan, giftee Inc started by integrating F&B companies, but has now entered the retail sector, with a total of 157 brands currently integrated. “So we think the same development trend would occur in Malaysia,” Ryo said.
More than just word of mouth marketing
Returning to their home country of Japan, the team told Vulcan Post that giftee Inc hit a quarterly record in the first quarter of 2021, with a distribution volume totaling 4 billion yen (around 150 million RM with an increase of 76.2% year-on-year) and net sales. yen 1,093 million (about RM 41 million with an increase of 141.9% year-on-year).
Certainly, these numbers were facilitated by the shift of business activities from businesses offline to online, which the team itself acknowledged. But this phenomenon presents other opportunities for the company to replicate these results in Malaysia as well.
“With eGift, brands can use a C2C (consumer-to-consumer) platform to sell their products as an eGift. When a customer sends an eGift to a new user, it allows brands to reach new customers and potentially expand the market and generate more revenue, ”Ryo added.
Additionally, Giftee for Business functions as a platform for B2B transactions, where brands can market their products to other businesses as e-gifts as part of incentive campaigns. “This would generate new distribution channels to dramatically increase revenue,” he explained.
For brands that already have physical gift cards, like the Starbucks example above, eGift allows these cards to be more visible and accessible since they are online, and can become a more important source of income for them. they.
- You can read more about Giftee Malaysia here.
- You can read about other Malaysian startups here.
Image Credit Featured: Ryo Okubo, COO of Giftee Malaysia
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