The Malaysian market size for the gift industry is estimated to be $ 1 trillion to $ 3 trillion ($ 4.1 trillion 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 due to the many festivals celebrated in our culturally diverse landscape, from Hari Raya to Chinese New Year and Christmas. Consequently, it presents a great opportunity to make electronic gifts, further accelerated by the pandemic, as there are more Malaysians hosting digital transactions as a rule, from e-commerce to e-wallets.
“We noticed that until now the digital gift was not widely adopted in Malaysia. Still, Giftee Malaysia has great potential to enter the market with the advantage of a first engine, ”Ryo said.
To publicize their presence, they have already partnered with 16 much-loved F&B brands in Malaysia, including Secret Recipe, Starbucks, Tealive and llaollao.
A digital gift card
Currently, Giftee Malaysia has launched 2 of its four solutions available in Japan: eGift System (eGift) and Giftee for Business.
eGift recalls the physical experience of buying a Starbucks gift card for a friend who can head to a Starbucks physical branch to claim that their drink costs what it’s worth.
Giftee Malaysia essentially digitizes this transaction. Instead, givers can buy an electronic gift and personalize a digital card with a message. Once checked, the gift sends a unique link to the gift recipient, who can claim their frappuccino at the store, for example.
However, recipients do not need to physically show up at the store to get the exchange, which means another person can do it on their behalf.
Ryo also added: “They have the option of delivering the gift 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, companies can eliminate the printing of physical vouchers and gift cards. This also makes it easier to track and manage your inventory of the number of gifts or prepaid products that have already been claimed.
Meanwhile, the corporate gift works for the B2B marketplace, as it allows companies to send electronic gifts to customers as campaign gifts or rewards to complete a survey. Think of the free subway cookies you get by taking a survey via your sandwich receipt link.
The team noted that this system is currently being 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 with their marketing and promotional activities.
Help brands on their digital journey
While the country embarks on its Malaysia’s digital economy map journey to transform Malaysia into a digitally driven digital income nation, local businesses are also evolving. To meet the changing needs of consumers in the pandemic, Giftee Malaysia believes they have an important role to play.
In the case of the secret recipe that supplies its cakes to consumers for birthday celebrations and the like, sending it to a loved one with an e-card can recreate the experience. It may be an experience that families have missed due to MCO restrictions.
While Giftee Malaysia works mostly with the F&B industry for electronic gifts, they are not turning a blind eye to other potential industries. F&B was a starting point, as it is an easier market to penetrate with the right strategies.
Once the Giftee Malaysia platform gains more trust from both consumers and businesses, Ryo hopes to expand its offerings in the form of experiences. For example, spa treatments such as wedding gifts or diving trips for friends who enjoy the outdoors.
You could say eGift looks a bit like the defunct Groupon, minus having to print the voucher as proof of purchase.
“For our business gift solution, this is agnostic for the industry, as companies from a wide range of industries generally undertake marketing and promotional activities and can take advantage of our electronic gifts as a way to improve participation in your campaigns or show your gratitude to your own customers and clients in a hassle-free way, ”Ryo added.
In Japan, giftee Inc. began incorporating F&B companies, but has now penetrated the retail industry, with a total of 157 brands currently on board. “Therefore, we believe that the same development trend would happen in Malaysia,” Ryo said.
More than just oral marketing
Back in their home country of Japan, the team told Vulcan Post that Donation Inc. reached a quarterly record starting in the first quarter of 2021, with a distribution volume of 4. 4 billion (about $ 150 million). RM with an increase of 76.2% year-on-year) and net sales of 93 1,093 million (about 41 million RM with an increase of 141.9% year-on-year).
Of course, these figures were provided by companies that switched from offline to online business activities, which the team itself acknowledged. But this phenomenon presents new opportunities for the company to replicate these results also in Malaysia.
“With eGift, brands can use a C2C (consumer-to-consumer) platform to sell their products as electronic gifts. When a customer sends an eGift to a user for the first time, this allows brands to reach new customers and potentially expand the market and generate more revenue, ”Ryo added.
In addition, Giftee for Business works as a platform for B2B transactions, where brands can market their products to other companies as electronic gifts in incentive campaigns. “This would generate new distribution channels to significantly increase revenue,” he explained.
For brands that already have physical gift cards, such as the Starbucks example above, the eGift allows these cards to be more visible and accessible as they are online and can become a source of more revenue. important.
- You can find more information about Giftee Malaysia here.
- You can read about other startups in Malaysia here.
Featured Image Credit: Ryo Okubo, Chief Operating Officer of Giftee Malaysia