Mileage system is?
As we know the mileage system has started as part of the airline’s sales promotion program and is being used for points service to increase customer’s royalties in various such as a bank, credit card companies, telecommunications, oil refining companies, and retailers. In Korea, the cumulative mileage of credit card companies exceeded 2.9 trillion KRW and one of the airlines exceeded 2.6 trillion KRW as of 2017. It is estimated that the total cumulative mileage including other business groups will exceed 10 trillion KRW. The cumulative amount including global business is estimated to be around 200 trillion KRW as of 2017. It indicated the possibility of expansion of the global mileage market.
Reason for using and Problems of Mileage system
Talking about the problems of the mileage system, I would like to talk that the companies are using mileage service as a useful marketing method to increase sales, to secure loyal customers with increased satisfaction. However, the mileage granted by the entity to the customer should be classified as a liability of the entity under International Accounting Standards and held as a liability allowance within the entity. Korean credit card companies were institutionalized to transfer mileage to the Social Welfare Foundation after the expiration date of five years, which resulted in companies actively inducing customers to use the mileage within the expiration period as it could result in their own profits even if the mileage was exhausted. Despite the inability of companies to secure enough of their traffic through the provision of mileage, the influx of new customers and the inability to break away from their customers continue to be inefficient, forcing them to continue investing heavily in related system development and maintenance.
Such as, Korean government has the policy to encourage individuals to use their own mileage, starting in June 2018, it is allow encouraged customers to withdraw their mileage through ATM or switch to other points just like the real money and required credit card companies and bank to donate the same amount of expired mileage to the social public interest foundation with customer consent in accordance with revised Article 67 of the Credit Finance Business Act.
Customers also want to use mileage as real money, but the reality is that mileage usage is limited. For customers, small and scattered mileages that only allow using in specific sites or malls designated by companies are the reason for complaint. Customers’ complaints about the mileage service are expected to be eliminated if they are paid by integrating scattered mileage instead of real money to purchase the products or services they want. 1
Challenges and changes in content service
The content market such as games, music sources, videos, web-toons, and web novels is worth $61 billion in 2018 in Korea and $2.38 trillion worldwide, which has recently grown rapidly. Behind the growth, however, concerns are growing that the content provider's profitability will be undermined by unreasonable profit-sharing from proprietary platform companies, complicated distribution structures and high distribution fees, and bleeding competition among content providers, which will also lead to the long-term elimination of competitive content providers.
Although content providers continue to make self-rescue efforts by providing their own platform or setting aside more marketing budgets, it is difficult to improve them as many providers compete fiercely on the limited market.
Solution
So how RINGx Platform can solve this problem?
RINGx Platform aims to create a block-chain-based mileage integrated eco-system by integrating various mileage services into blockchain technology and establishing an innovative platform for customers to purchase and consume high qualified content with integrated mileage based on cooperation with various mileage service providers.
Also, the RINGx Platform hopes that the decision which offers the RINGx Platform help solve all problems and helps to develop your business.2
