Cross-Industry Tie-Ups on Loyalty Programs Spreading in Japan

Tokyo, Aug. 18 (Jiji Press)--Cross-industry partnerships over loyalty programs, a key tool to attract consumers, are spreading in Japan. The country's loyalty program market is seen expanding to about one trillion yen in fiscal 2018, according to the Nomura Research Institute. Under such programs, loyalty points are given to consumers when they pay their shopping or restaurant bills. Currently, three major programs are vying--Ponta, T-Point and Rakuten Super Point. The Ponta service is offered mainly by major convenience store operator Lawson Inc. <2651>. In December, Lawson will link the Ponta service with the loyalty point program of mobile phone carrier NTT Docomo Inc. <9437>. Tpoint Japan Co., the operator of the T-Point program, has formed a capital tie-up with mobile carrier Softbank Group Corp. <9984> and is set to do the same with convenience store operator FamilyMart Co. <8028>. It is also providing loyalty points to customers of Shinsei Bank <8303> and Suruga Bank <8358>. The Ponta and T-Point camps are each slated to tie up with Tokyo Electric Power Co. <9501>, granting points to TEPCO customers when they pay their electricity bills. Major Internet mall operator Rakuten Inc. <4755>, which runs the Rakuten Super Point program, has started to allow people who shop at its online mall to use their points at Daimaru and Matsuzakaya department stores, and Circle K and Sunkus convenience stores. Ponta is now usable at about 100,000 outlets, T-Point at 390,000 outlets and Rakuten Super Point at 520,000 outlets. Programs that award points generously and can be used at multiple outlets are attractive to consumers. Katsumi Tomita, senior consultant at the Nomura Research, said the key for these camps is whether they can convince consumers how beneficial their programs are. <3086> <8270> END