HID Global Delivers Gift Card Issuance Project to Two Korean Retailers
HID Global announced that it has
introduced a pilot digital gift card project at two Korean retail giants, Home
plus and Shinsegae E-mart, using its FARGO HDP5000 high-definition
printer/encoders. With the HDP5000, the two retailers can now brand and
customize gift cards for corporate customers and individuals, adding a level of
personalization not available with conventional paper gift vouchers. The
digital issuance of cards enables individuals and companies to create custom
card designs using their own images, logos, personalized messages and other
branding on the card.
“The on-demand digital gift card
issuance program helped us develop a unique differentiation strategy. Unlike
paper gift vouchers, the digital gift cards are 100 percent personalized,
providing consumers with a customized experience and instant gratification,”
said Min-jung Lee, team manager of Shinsegae E-Mart’s corporate business division.
Facing Korea’s notoriously saturated
consumer goods market and fierce competition, the two retailers have seen HID’s
personalized gift card issuance solution as a significant revenue growth
vehicle, opening up a new pre-paid gift card market in addition to credit cards
and cash as conventional modes of payment. The retailers’ digital gift cards
also had the capability of unlimited recharging and offered special discounts
at franchise stores that prompted repeat purchases.
As of today, 250 FARGO HDP5000 card
printers are deployed at Home plus and Shinsegae E-mart stores, and the digital
gift card issuance pilot resulted in record-breaking sales, with triple-digit
growth over last year for Home plus during the 2010 Korean Thanksgiving season.
“With HID’s digital gift card
issuance solutions, we boosted online affiliated cards purchases, and many of
our customers were impressed by this concept,” said Chang-moog Cho, team leader
of Home plus’ planning and strategic team department. “For example, some
company executives created tailored messages like ‘Happy Thanksgiving!’ on
customized cards and distributed them to employees. The solution helped us
achieve 200 percent growth during the 2010 Thanksgiving season."
“This is the first time a digital
gift card issuance project has been implemented in Korea
or in Asia as a whole, and HID Global is pleased to be selected by Home plus
and Shinsegae E-mart for this critical project,” said Kenneth Cheung, HID
Global’s director of sales and secure issuance for East
Asia. “The two retailers evaluated several vendors and ultimately
selected HID’s solutions because of the superb printing quality of FARGO HDP
5000 printers and in-country technical support. The successful deployment
demonstrated our continued Genuine HID commitment to quality and service.”
Home plus and Shinsegae E-mart are
currently the country’s top two retailers, followed by Lotte Shopping and
Walmart, operating a combined 241 hypermarkets and 262 express stores
nationwide.