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Home > Press Release
HID Global Delivers First Gift Card Issuance Project to Major Retailers in Korea
Source: HID Global | Date: 03/08/2011
HID Global, trusted leader in solutions for the delivery of secure identity, today announced that it has introduced a pilot digital gift card issuance project at two Korean retail giants, Home plus and Shinsegae E-mart, utilizing HID’s 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 offered by HID Global helped us develop a unique differentiation strategy. Unlike paper gift vouchers, the digital gift cards are 100[[]%] personalized, providing consumers with a customized experience and instant gratification,” said Min-jung Lee, Team Manager, Corporate Business Division, Shinsegae E-Mart.

Opened New Markets for Increased Revenue
Facing Korea’s notoriously saturated consumer goods market and fierce competition, HID’s personalized gift card issuance solution has emerged as a significant revenue growth vehicle for the two retailers, 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, Planning & Strategic Team (Gift Voucher), Samsung Tesco Co. Ltd (Home plus). “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[[]%] 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, Director of Sales, Secure Issuance in East Asia with HID Global. “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.
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