CJ Olive Networks' gift card volume surges 33% in H1 on B2B demand

CJ Olive Networks said Tuesday its gift card business posted record first-half earnings, with transaction volume rising more than 33 percent year-on-year in the first half of this year. Full-year volume last year also grew about 27 percent from the previous year.

The company attributed the growth to rising business-to-business demand. In July, it began supplying CJ gift cards and CJ Olive Young gift cards as rewards for LG Uplus home service subscribers — an example of how gift cards are being used by companies as a tool to attract and retain customers.

Consumers who newly subscribe to or renew contracts for LG Uplus home services — including internet, IPTV and landline phone — can receive gift cards worth up to 400,000 won ($289), depending on their chosen service and contract terms. CJ Olive Networks said it expects to expand its user base by broadening the supply of gift cards to home service subscribers.

The company also cited an expanded network of participating merchants as a growth driver. Earlier this year, CJ Olive Networks extended its partnership to cover more than 5,700 E-mart24 convenience stores nationwide, allowing consumers to use the integrated CJ gift card at convenience stores in addition to dining, shopping and entertainment venues.

The CJ gift card is accepted at more than 30 brands in total, including CJ Olive Young, Tous les Jours, CGV, On Style and CJ The Market among major CJ Group brands, as well as Mega MGC Coffee, Paul Bassett, E-mart24 and Ranking Dak Com.

CJ Olive Networks also issues gift cards tailored to individual CJ Group affiliates. The CJ Olive Young gift card is particularly popular among younger consumers, with those in their teens through 30s accounting for 88 percent of all users.

The company said this allows corporate clients to choose products suited to their target audience and campaign goals based on user demographics. Integrated gift cards are used for events such as new subscription or contract renewal rewards and employee welfare programs, while brand-specific cards are chosen for membership rewards aimed at particular consumer segments.

CJ Olive Networks said its product portfolio — spanning both integrated and brand-specific gift cards — has proven competitive in the B2B reward market. Its bulk-purchase gifting service for corporate clients, Onecon Bizmall, has secured more than 2,000 corporate customers.

Going forward, the company plans to strengthen its product lineup to better match corporate clients' reward targets and campaign objectives. It also aims to add new merchants in everyday lifestyle categories and secure new supply partnerships across multiple industries to broaden its B2B reward business.

"As corporate clients' reward program objectives become more segmented, brand competitiveness and versatility have emerged as key selection criteria," said Lim A-jin, head of CJ ONE at CJ Olive Networks. "We will continue to refine our product portfolio to meet demand across diverse industries and expand the value of gift cards."