The Surprising Reason GMAC Vouchers are Popular in China & How This Relates to Your Brand
The Graduate Management Admission Council (GMAC) is in charge of administering the GMAT exam, which is used in graduate schools around the world for admission into their MBA programs. While students can pay to take the GMAT, they can also use GMAT gift vouchers. The gift vouchers come in increments in US dollars: $50, $100, and $250, which would be the full cost of the exam. Surprisingly, of the vouchers that have been sold since January this year, 75% vouchers were purchased in China, a disparate proportion of total sales. But why?
A closer look at payment methods gives us potential insight into this striking trend. E-commerce in China is so streamlined with simple methods of payment such as Alipay and WeChat Payment that people tend to forgo more complicated ways to pay if there are more convenient options. In this case, while many services and merchandise that the GMAC offers do not support Alipay, the vouchers they offered did. Alipay is far more convenient for Chinese nationals than paying with the limited number of supported credit and debit cards, showing that brands keen on the China market should support China’s top forms of payment. Offering the ability to pay through services such as Alipay of WeChat Payment caters to the Chinese market, allowing brands to be accessible and appealing.
Additionally, GMAT gift vouchers make it easy for parents, relatives, and friends to help pay for a pricey exam, or at least alleviate the cost. Education is heavily emphasized in China, and the competition for places in top schools both nationally and internationally make these gifts very popular. Gift vouchers can even be sent electronically with a personalized message using Chinese social media, convenient considering the amount of people on Chinese social media.
Read more about how GMAC has increased their followers on Chinese social media here.