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| Top selling Hyundai PLCCs (Costco, Korean Air, Starbucks) |
Amidst the issuance of over 7 million Private Label Credit Cards (PLCCs), Hyundai Card has demonstrated its market dominance with an impressive near 80% share. Hyundai Card has announced plans to not only attract more customers through its PLCCs but also to enhance its competitive edge by collaborating closely with partner companies.
According to data released on the 26th 2023 by Rep. Yoo Eui-dong from the National Assembly, the number of PLCCs issued had reached 7,338,677.
Introduced in South Korea in 2015, PLCCs are specialized cards that offer exclusive benefits and services through partnerships with specific companies. Unlike co-branded cards, which offer perks from various partners, PLCCs provide targeted rewards and discounts from dedicated collaborators.
For card issuers, PLCCs are beneficial as they attract a substantial influx of customers, particularly those loyal to the partner brands, which can significantly enhance profitability.
While card issuers traditionally bear the cost of card design, marketing, and recruitment, PLCCs are cost-effective as the expenses are shared with the partner company. This shared cost model reduces financial burdens, allowing card issuers to enhance customer benefits further.
Since their introduction, PLCCs have gained popularity, with a total of 134 types launched by July 2023. Of these, Hyundai Card has issued 5,753,975 cards across 56 types of PLCCs, capturing 78.41% of the total market share.
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| List of Hyundai PLCCs |
Hyundai Card has launched the most successful PLCCs, with 9 out of the top 10 most issued cards coming from them. The most popular has been the Costco Rewards Hyundai Card, in collaboration with Costco, which has seen over 640,000 issuances since its 2019 launch.
The Hyundai Card Smile Credit Card, in partnership with eBay, and the Hyundai Card Hyundai BLUEmembers Credit Card, in partnership with Hyundai Motors, have also been successful, securing the second and third positions in issuance respectively.
Leveraging the benefits of PLCCs, Hyundai Card has partnered with 18 companies across 15 industries, extending its reach beyond retail and manufacturing to include car-sharing, delivery services, fashion, and gaming, thereby strengthening its market position.
In March 2023, Hyundai Card further expanded its industry footprint through an exclusive partnership with American Express, a premium card brand and global payment network. This partnership has led to the launch of the Mirae Asset Hyundai Card in May, extending into the stock investment domain and enhancing the financial visibility of PLCCs.
Hyundai Card's focused strategy on PLCCs has been effective in attracting loyal customers. According to the Credit Finance Association, in 2022, Hyundai Card attracted 1,597,000 new members while only seeing 732,000 cancellations, achieving a cancellation rate of 45.8%—the lowest among domestic credit card companies. Additionally, Hyundai Card's dormant credit card ratio stood at 9.63%, one of the industry's lowest.
Hyundai Card is also capitalizing on shared data with various partners to focus on additional outcomes.
At the recent Domain Galaxy Council held at Hyundai Card's headquarters in Yeouido, Seoul, Hyundai Card discussed collaboration with its PLCC partners. The 'Domain Galaxy' represents a 'data alliance' among Hyundai Card's PLCC partners, aiming to enhance cooperative efforts.
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| Domain Galaxy Council |
At this event, attended by partners like Hyundai Motors, Korean Air, and E-Mart, Hyundai Card's vice president highlighted the company's proactive adaptation to the rapidly changing external environment and its foundations as a 'Clean Company' with excellent health indicators.
This council also showcased collaboration examples among the Domain Galaxy partners, illustrating the advancements in Hyundai Card's data science capabilities. Since the first council in 2020, partners have accumulated over 1,900 data collaboration cases.
This commitment to data science and partnership synergy underscores Hyundai Card's strategy to strengthen cooperation and share successes with all PLCC partners, making the annual council a cornerstone for pioneering marketing initiatives in various business domains.
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