Asia’s Loyalty Mosaic: The New Loyalty Epicenter Is Taking Shape in the East
July 9, 2025Asia’s Loyalty Mosaic: The New Loyalty Epicenter Is Taking Shape in the East
Asia is transforming—building bold, emotional, and tech-powered loyalty models that are setting a new global standard.
Asia’s Loyalty Advantage Is Its Mosaic
Asia is no monolith—it’s a region defined by vibrant diversity and layered complexity. Home to over 60% of the world’s population, the region spans thousands of cultures, micro-economies, languages, and digital behaviors. This diversity isn’t a challenge—it’s a superpower.
According to a recent BCG study, over 75% of Asian consumers are enrolled in at least one loyalty program. Yet many feel disconnected from the benefits. That disconnect is creating an inflection point. With the loyalty market projected to grow from $46.9 billion in 2023 to $74.1 billion by 2028, consumer expectations are rising rapidly. Loyalty today is about more than just rewards—it demands relevance, emotional connection, and real-time engagement.
In response, leading Asian brands are reimagining loyalty from the ground up. They’re not just aiming to retain customers but to engage, surprise, and resonate. It’s a new loyalty equation powered by trust, timing, and cultural intelligence.
At Capillary Technologies—partnering with 400+ brands across 30+ countries—we’ve seen firsthand how Asia’s leading markets are forging their own paths, driven by emotional intelligence, cultural fluency, and digital-first thinking.
Let’s take a closer look at some of the region’s most compelling loyalty successes.
Singapore: Pursuit of Relevance in a Mature Market
Singapore’s loyalty ecosystem is digitally mature and consumer-savvy. With 90% internet penetration and high disposable income, nearly every resident is enrolled in 4–6 programs.
In this market, flexibility wins. Multi-brand ecosystems like yuu and CapitaStar thrive on instant gratification and cross-brand redemptions. Capillary’s TungLokFirst program is a standout—35+ restaurants, real-time rebates, birthday perks, and off-peak bonuses tailored for food-savvy, value-conscious diners. (Source)
Omnichannel is expected. QR codes, e-wallet tie-ins, and loyalty-on-the-go are essential. With ecommerce crossing US$8B in 2023, programs must bridge every touchpoint. Capillary’s partnership with one of the leading footwear brands drove 2.2× ROI by using predictive analytics to hyper-target segments.
Singapore also leads in paid loyalty. From grocery subscriptions to premium credit cards, members pay for faster, better experiences—as long as the value is clear.
“In Singapore’s discerning loyalty market, only programs that deliver data‑driven personalization, mobile-first convenience, and flexible, coalition-based rewards (like non‑expiring points, cashback, or cross‑brand perks) can secure true engagement, unwavering retention, and maximum lifetime value”, says Gladys Ang, Senior Director, Sales, APAC at Capillary Technologies.
�� What works: Build seamless, curated, omnichannel programs. Prioritize real-time gratification and cross-brand value.
Philippines: Loyalty Rooted in Empathy and Everyday Rituals
The Philippines’ loyalty market—valued at over US$590 million and growing at 17.5% annually—is full of potential. But in a culture where loyalty is deeply personal, brands must go beyond discounts to win hearts. It’s not just about transactions—it’s about trust, emotion, and everyday connection.
The traditional suki relationship—where buyers return not just for products but for people—still influences modern loyalty design. Filipino consumers value familiarity, warmth, and community. Loyalty starts with relationships, not rewards.
Yet the market is evolving fast. With over 70% smartphone penetration and a digitally savvy Gen Z, consumers now expect the same emotional connection—delivered in real time, across channels. Inflation adds urgency: 73% of consumers actively seek better value.
Successful programs blend old-world values with modern delivery—group rewards for families, birthday perks, festival campaigns (like Sinulog or Pahiyas), and SMS nudges in local dialects. These hyper-localized, mobile-first experiences see 2–3x higher activation rates.
Capillary’s loyalty strategies tap into this blend—building campaigns around school breaks, religious observances, and community rituals that mirror how Filipinos live and spend – being human, not transactional.”
�� What works: Blend cultural familiarity with digital agility. Design loyalty around family and everyday rituals—then scale it through mobile.
India: Loyalty at the Crossroads of Emotion, Scale, and Intelligence
India is not just one of the world’s fastest-growing consumer markets—it’s a loyalty powerhouse in the making. With projections estimating the market to grow from US$4.3 billion in 2025 to US$17.1 billion by 2035 at a 16.1% CAGR, the country presents both immense opportunity and immense complexity.
What makes loyalty in India unique is the incredible diversity of its consumer base. Urban metros lean toward premium experiences—think airport lounge access, early product drops, and brand exclusives. Meanwhile, consumers in tier-2 and tier-3 cities often respond more to cashback offers, referral codes, and utility-driven benefits. Add to that 22+ languages, regional preferences, and a generational shift toward digital-first behavior—and you get a market where one-size-fits-all loyalty simply doesn’t work.
This is where technology—and specifically AI-powered personalization—plays a pivotal role. Capillary Technologies’ powers 15–20% of all loyalty programs in the country (Source) – helping brands operate millions of personalized journeys simultaneously, using real-time data to predict churn, drive next-best offers, and adapt messaging to the customer’s behavior, location, and preferences. Capillary works with brands to design festival-timed loyalty campaigns that tie rewards to shopping moments, emotional milestones, and family rituals. Programs activated during these cultural windows often see a 2–4x spike in engagement compared to regular periods.
A standout case is Polycab’s ‘Experts’ program, built in collaboration with Capillary. Designed for electricians and B2B channel partners, the program blends gamification, utility-based rewards, and progress tracking. The result? A 57% increase in active users, earning it “Loyalty Program of the Year” at the Retail Asia Awards 2025.
India is also seeing a rise in coalition and ecosystem loyalty models—from PAYBACK and Tata Neu to partnerships between airlines, retailers, and banks—where consumers can pool points across categories, increasing relevance and stickiness.
�� What works: Build AI-first, tiered programs. Design for India’s spectrum—digital to physical, emotional yet transactional.
Vietnam: A Loyalty Market on the Verge of Breakthrough
Vietnamese consumers are mobile-native, brand-conscious, and premium-oriented—but not easily loyal. A McKinsey report ranked Vietnam lowest in brand/store loyalty across APAC, making it a ripe market for innovation.
Despite the low baseline, the opportunity is massive. With a projected 9.8% CAGR through 2028, loyalty in Vietnam is being redefined by hyper-personalization, cultural nuance, and smart digital delivery.
With 97% smartphone penetration and some of the highest mobile usage rates in the region, Vietnam’s Gen Z and millennial consumers expect everything—rewards, redemptions, and brand interactions—to be mobile-first. These digital natives dominate the market, and they’re drawn to loyalty programs that tap into local culture—whether through folklore, family rituals, or national celebrations like Tết.
Localization isn’t just a nice touch; it’s a powerful growth lever. One global beauty brand saw a 22% uplift in conversions simply by adopting Vietnamese-first messaging and weaving in culturally resonant visuals.
Zalo integration, red-and-gold color schemes, and AI-driven reward suggestions aligned with festivals like Vu Lan create real traction. “Vietnamese consumers want to feel seen, heard, and respected—on their terms,” says Santosh Reddy, VP-Sales, Asia.
�� What works: Vietnamese-first UX, Tết/Vu Lan campaigns, gamified rewards, mobile wallet tie-ins, and cultural relevance.
Indonesia: Youthful Scale, Gamified Engagement, and Omni-Ecosystems
Projected to hit US$2.64 billion by 2028, Indonesia is Southeast Asia’s most dynamic loyalty arena. But with 270+ million people and 185 million internet users, digital scale alone doesn’t guarantee success—brands must move fast and engage meaningfully.
Loyalty is deeply integrated—across ecommerce platforms, ride-hailing apps, and QSR chains. With 353 million mobile connections, mobile isn’t just the first screen—it’s the only one that matters.
This mobile-first culture powers loyalty ecosystems. Super-apps like GoTo and Grab, plus brand apps and wallets, offer seamless, real-time rewards: cashback, QR redemptions, e-vouchers, and wallet credits.
And loyalty isn’t serious—it’s fun. Gamification rules. From spin-the-wheel and digital stickers to refer-a-friend mechanics, loyalty is a social experience. Tier upgrades and referrals are flaunted on TikTok and Instagram, turning engagement into advocacy.
But Indonesia isn’t one market—it’s a mosaic. Preferences vary across islands and store formats. Winning requires bridging online/offline and modern/traditional trade.
A standout example: Erajaya’s MyEraspace program, powered by Capillary, scaled to 13.9M members (2.4X growth), boosted retention by 68%, and drove 85% of all sales—winning Retailer of the Year at the 2025 Retail Asia Awards.
�� What works: Go gamified, go mobile, and go real-time. Combine offline reach with digital depth across Indonesia’s diverse retail spectrum.
Australia: A Loyalty Market That Demands Clarity, Convenience, and Emotional Relevance
Australia is one of the most mature loyalty markets globally, with over 95% of consumers enrolled in at least one loyalty program. But in a country where nearly every major retailer already offers rewards, the battleground has shifted from enrollment to everyday engagement.
Loyalty programs in Australia must now meet three key expectations: clarity, convenience, and emotional connection.
First, let’s talk about value. With inflation and rising living costs affecting household budgets, Australians are leaning harder on loyalty programs than ever before. In fact, about 30% of consumers subscribe to paid programs like Amazon Prime, Coles Plus, or Woolworths Everyday Extra. They’re willing to pay for speed, convenience, and guaranteed savings—as long as the benefits are simple to understand and easy to redeem.
This is where many brands fall short. Complex point systems, blackouts on redemptions, and lack of transparency often frustrate users. In response, the Australian Competition & Consumer Commission (ACCC) has even reviewed loyalty programs to ensure fairness and better disclosure—emphasizing that clarity is no longer optional.
But loyalty here isn’t just transactional—it’s increasingly emotional and purpose-led.
- Qantas Frequent Flyer wins with national pride and premium experiences. ● Woolworths’ Everyday Rewards links to Qantas, offers carbon offsetting, and promotes sustainability.
- MyMacca’s Rewards taps into nostalgia with gamified experiences that appeal to both young and older generations.
Capillary Technologies supports Australian retailers in delivering personalized, real-time engagement strategies. From predictive targeting to loyalty-linked promotions, the focus is on simplifying complexity and making every interaction feel meaningful.
What’s emerging is a tiered ecosystem of loyalty—from free membership programs offering instant discounts, to premium tiers that include subscriptions, early access, or lifestyle perks. The success of multi-brand coalitions like Flybuys—used across Coles, Target, and other Wesfarmers brands—shows that consumers value unified, cross-brand earning and redemption models that reduce friction and increase everyday utility.
�� What works: In a crowded market, loyalty must feel personal, purposeful, and easy. Use tech to simplify—and storytelling to stand out.
Final Thoughts: Loyalty with Context and Courage
Winning loyalty in this region means balancing two powerful forces: cultural intelligence and technological agility. This is where Capillary Technologies sets itself apart—powering loyalty for 400+ brands across 30+ countries by blending AI with cultural insight, bringing the right technology with the right context.
“Loyalty isn’t earned through algorithms alone—it’s built when technology learns to speak the language of human connection. That’s when brands stop marketing and start mattering.”– Don Smith, Chief Consulting Officer, Capillary Technologies.
Invest in loyalty not as a campaign, but as a core strategy. Anchor it in culture. Amplify it with technology. And most importantly, make it feel personal, every step of the way.
| About Capillary Technologies
Capillary Technologies is a global enterprise loyalty leader, powering 500+ programs for brands like Shell, Abbott, Erajaya, Polycab, Sonak Group, Asics, and Domino’s. With operations across the globe, its AI-driven suite and CDP—backed by consulting expertise—supports over 1 billion members worldwide. Capillary enables personalized engagement, stronger relationships, and higher lifetime value across industries. Discover more at www.capillarytech.com. |