HONG KONG: ANZ has entered Hong Kong's crowded and
highly-competitive credit card market, with the launch of its Pt100
platinum card, a move that has sparked scepticism in financial circles
over its long-term viability.
The bank - which is the largest card issuer in Australia and New Zealand
- however insists its foray into the business is viable as it is
exploiting dissatisfaction in the marketplace.
Rapp Collins Worldwide Hong Kong managing director, Sean Cooper, said:
"Research has indicated that people want real benefits. They want low
interest rates, cash rebates, no annual fees and relevant and straight
offers."
Rapp Collins produced the print campaign which ran in major English and
Chinese language newspapers including the South China Morning Post and
Apple Daily.
Most credit card issuers currently deploy loyalty rewards programmes,
such as a points-for-gifts redemption system, or they attach lifestyle
benefits to their products to make them more appealing.
But Cooper said the market is changing. "Up to 90 per cent of the middle
to upper end of the market collect points, but research shows that
between 60 and 70 per cent of them don't redeem points on a regular
basis."
This shows that the offers are proving less appealing now. Cooper said
this has provided ANZ with the opportunity to enter the market despite
the intense category competition.
While Pt100 is not being offered to everyone, the qualifying income - of
at least HKdollars 35,000 (USdollars 4,500) per month - is much lower
than rival platinum products.
Hong Kong is the first Asian market in which Pt100 has been
launched.
Similar roll-outs in other regional markets are likely in the near
future.
