Report on Credit Cards

7/31/2019 Report on Credit Cards

1/24

The Luxury Consumer

Preferred Hotel Group 2008 Asia Pacific Regional Meeting

American Express, Merchant Service International

Phil PomfordGlobal Client Manager


2/24

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


3/24

American Express in JAPA

(Japan, Asia Pacific and Australia)


4/24

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


5/24

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


6/24

American Express Research

Inside the Affluent Space Singapore example

Lifestyle Index and Spending Trends L IST

Platinum and Centurion Cardmembers


7/24

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


8/24

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


9/24

IAS Findings - Singapore


10/24

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


11/24

Amex Platinum and Centurion Research - JAPA

Profiles


12/24

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




13/24

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


5 leisure trips per year 5 leisure trips per year




14/24

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


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.


15/24

Opportunities to Partner


16/24

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


17/24

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


18/24

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


19/24

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


20/24

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


21/24

Thank You


22/24

Appendix


23/24

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


24/24

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

Documents

Report on Credit Cards