Report on Credit Cards
Transcript of Report on Credit Cards
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The Luxury Consumer
Preferred Hotel Group 2008 Asia Pacific Regional Meeting
American Express, Merchant Service International
Phil PomfordGlobal Client Manager
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Agenda
Introduction to American Express in JAPA
American Express Research
Inside the Affluent Space
Lifestyle Index and Spending TrendsL IST
Platinum & Centurion Survey Results
Opportunities to Partner
Marketing Channels
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American Express in JAPA
(Japan, Asia Pacific and Australia)
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America n Express Proprietary
T A I W A N
T H A I L AN D
SI NGAPORE
AUSTRALI A
N E W ZE A LA N D
I N D I A
J A P A N
H ON G K ON G
Over 5 million proprietary cardmembers across 8 proprietary markets with
Japan and Australia being the largest in terms of card base
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America n Express Partner Network
IO PartnersMALDIVES:
PAKISTAN:
SRI LANKA:
VIETNAM:
MALAYSIA:
PHILIPPINES:
IOBRUNEI:
CAMBODIA:
FRENCH
TERRITORIES:
INDONESIA:
KOREA:
South Pacific Island:
AUSTRALIA:
AUSTRALIA:
HONG KONG:
HONG KONG:
HONG KONG:
INDIA:
JAPAN:
KOREA:
KOREA:
CHINA:
NCL Partners
MALAYSIA:
NEW ZEALAND:
SINGAPORE:
TAIWAN:
TAIWAN:
TAIWAN:
TAIWAN:
THAILAND:
JAPAN:
CHINA:
Our32 Partners are strategic key players across 20 marketswho are the market
leaders in their market and have premium portfolios
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American Express Research
Inside the Affluent Space Singapore example
Lifestyle Index and Spending Trends L IST
Platinum and Centurion Cardmembers
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Areas of Research
Inside the Affluent Space (IAS)
The number of millionaires in Asia Pacific is growing twice as fast as any
other region
Amex has conducted attitudinal research into this fast growing segment, in6 markets
Research with the cardmembers and the merchants who serve them, from
hotel concierge and luxury high end retailers
Lifestyle Index & Spending Trends (LIST)
Provides a quantitative perspective of the spending and purchasingbehavior of the affluent in Singapore
Analyses retail growth and growth in spending on luxury items
LIST provides a snapshot in time of where the affluent are spending
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IAS Findings - Regional
Hong Kong
Moving from Status conscious to wanting to become Connoisseurs andunderstand the history of their goods
Singapore
More interested in Talk value , the unusual and the story worthy travel
excursions. Seek out service providers who make a personal connection
with them
India
New wealth equals Aspirers . They care more about badge value andwant recognition, hot trends and brands.
Australia
Wealth is simply to enable them to enjoy their life. Service provider s mustbe knowledgeable, responsive and easy to deal with
Japan
Extremely sophisticated, incredibly detail orientated and looking to expressthemselves as individuals. This means unique travel experiences with thehighest service levels
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IAS Findings - Singapore
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LIST Findings - Singapore
Affluent consumer spending is on the rise 2007 Amex billings grew at 23%
Vs industry growth of 16% Retail spending grew 29% compa red with 20% in 2006
Luxury watches grew by an astounding 70% in 2007 over 2006!
High end jewelry grew by 56%
Fine dining spending grew at a healthy 24%
Average transaction for luxury watches grew 37% to S$3,829
Average transaction for fine dining up 13% to S$440
3 times the value at restaurants overall
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Amex Platinum and Centurion Research - JAPA
Profiles
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Travel Insights - Business
Number of business trips per year (in %)
How many business trips do you take per year?
19
25
21
9
20
5
19
29
22
10
15
8
18
19
21
7
27
6
none
1-2
3-5
6-10
11-15
16 or more
Total PLATINUM CENTURION
8 business trips per year 8 business trips per year
10 business trips per year 10 business trips per year
9 business trips per year 9 business trips per year
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Travel Insights - Leisure
Number of leisure trips per year (in %)
How many leisure trips do you take per year?
30
46
14
4
5
1
34
47
12
2
4
1
23
44
18
6
8
1none
1-2
3-5
6-10
11-15
16 or more
Total PLATINUM CENTURION
5 leisure trips per year 5 leisure trips per year
6 leisure trips per year 6 leisure trips per year
5 leisure trips per year 5 leisure trips per year
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Our Cardmembers Travel the World
9
3
4
7
10
11
13
27
44
52
53
10
3
3
5
10
12
13
26
51
51
47
9
5
5
10
10
9
14
29
32
53
64
0 10 20 30 40 50 60 70
None
Central or South America
Mexico/Caribbean
Africa
Eastern Europe/ Russia
Middle East
Southeast Asia*
South Pacific
Asia*
United Stat es/Canada
Western Europe
Total PLATINUM CENTURION
Travel destinations in past 12 months (in %)
* Asia: China, Japan, Korea, India, Pakistan, etc.Southeast Asia: Malaysia, Singapore, Thailand, Vietnam, etc.
Travelling in the past 12 months.
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Opportunities to Partner
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JAPA High Level View
Reach and Quality of Cardmembers
8 proprietary markets (over 5 mm cardmembers)
4 Centurion ma rkets (Australia , Hong Kong , Singapore a nd Japan)
Ove r 32 GNS partners in 20 ma rkets (ove r 5 mm c ardme mb ers)
Premium GNS cardmembersaccess via Premium channels ENTRE
Key target source markets : Japan, Hong Kong, Australia and Singapore
Emerging markets of interest : China and India
Availability of Ca rdmember Marketing Communication Channels
Highly valued marketing channels especially DMs and free channels
Channels ranging from solus DM, platform programs, Above the Line, e-channels etc
GNS marketing opportunities
Local marketing opportunities
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Regional & Local Opportunities
Regional
1.Targeted DM/eDM
2.Destination campaigns e.g. Visit Asia Pacific 2008
3.Travel Auctions Going Once in US targeting Asia properties
4.Travel MagazinesT&L, Centurion & Departures
5.MR Redemption Program
6.EntreGNS Premium
Local
1.Selects Dining offers
2.Selects Travel Wallet/Offers
3.Statement Messaging
4.Billing Inserts
5.E-newsletters
6.MR Redemption Program
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GNS Marketing Opportunities
1. ENTRE
Global Premium usage platform offering unique benefits and privileges
2. Travelers' Pick - Destination Campaigns : Indonesia and Malaysia
Regional platform open to all GNS cardmembers in JAPA
3. JourneysWeb based content for US based co-brand cards
4. Global e-Shop
Online secure portal targeting affluent cardmembers, with exclusive lifestyleoffersfull concierge booking service
5. Business Advantage
Specifically targeted at the SME segment, lodging, airline and MICE
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Relevant Marketing Opportunities - Local
Travel Industry Program
Merchant BonusingSingaporeDestination Marketing
Selects Dining ATL campaign and Events
Hong Kong Travel Wallet
Merchant Bonusing and Redemption
Winning Cities : MacauHong Kong
Selects Dining
Selects Lodging
Business SavingsJapan
Selects Travel Wallet (Inbound)Thailand
Selects Travel Wallet (Lodging, Restaurant and Retail)China
Selects Inbound (Travel Wallet)
Selects Dining and Fine /Premium Dining Guide with Time OutIndia
Selects Dining/Retail/Travel
Winning Cities : Sydney
MR BonusingAustralia
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Summary of Opportunities
Communication Channel Frequency Markets Available Lead Time
Targeted Direct MailersSolo Direct Mailer Subj ect to mailing All markets 3 months
Solo Elect roni c Di rect Mai l Monthly Singapore, Aust rali a , New Zealand 2 months
Compliment ary Communication
Statement Insert Monthly China GNS 2 months
Cardmember Information Page (CIP) Monthly All markets 1 month
Selects Website Live All markets 2 weeks
Newsletter Monthly Australia (Insider) 2 months
E Newsletter Monthly Japan, Hong Kong, Australia 2 months
Singapore, New Zealand, Australia 2 months
Above The Line
Internal
Plati num Magazine Quarterly All Patinum markets 3 months
Centurion Magazine Quarterly Singapore, Hong Kong, Australia 3 months
Expressions (Thailand) 6x per Year Thailand 3 months
Departures (Japan) 6x per Year Japan - Platinum and Centurion cardmembers 4 months
Impression Gold (Japan) Monthly Japan - Gold cardmembers 4 months
External
Local papers & magazines Dai ly, Monthly Based on market s varies
Travel & Leisure Monthly Aust ralia, India, China and South East Asia & New Zealand 4 months
GNS
Entre Year round Australia, Japan & Korea 3 months
Global e shop Year round Hong Kong, Singapore, Malaysia, Australia 2 months
Business Advantage Year round Hong Kong, Japan, Singapore, India and Australia 3 months
MSI
Selects Dining, Retail. Travel & Year round All markets 3 months
Travel Campaign (outbound) Ad hoc Australia, Japan, Singapore 3 months
Destination Programmes Ad hoc Macau, Thailand or subj ect t o market f ocus 5 months
Multi Partner Communication Channels
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Thank You
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Appendix
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Marketing Advantage
American Express card issuing and payment
processing network results in enhancedsegmentation, analytical and operational
capabilities
As the worlds only global issuer and acquirer, the unique value provided by
our card issuing and payment processing network differentiates AmericanExpress from other payment solutions
Cardmembers Merchants
Through our closed loop, we have knowledge of our CM buyingbehaviour enabling objective led segmentation of our database to
support marketing to drive incremental spend
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Consumer Ca rds by Ma rket
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Green
Charge
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Gold
CreditCharge & Credit
Blue
Credit
Gold
Charge
Platinum
Credit
Platinum
Charge
Centurion
Charge
Nil
Nil
Thai Airways
Eva Air
Indian Airlines &
King Fisher Airlines (SME
Corp Card)
Singapore Airlines
Peninsula Hotels
Nil
Qantas
Airline/ LodgingCobrand Cards
Yes
Nil
Yes
Yes
Yes
Yes
Yes
Yes
Yes
NIlYesYesYesNilNew Zealand
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Nil
Yes
Yes
Yes
Yes
Nil
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
NilNilPhilippines
BMW Mini
AffinityNilThailand
NilNilTaiwan
India Today Group
RPMNilIndia
NilYesSingapore
Cheung Kong
Krisflyer GoldYesHong Kong
Sumitomo
Foil
Okura
YesJapan
Affinity
Blue Sky
Rewards Maximiser
YesAustralia
Other CardsCards