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China Merchants Bank this month launched a co-branded credit card with Guangzhou-based retailer Tianhecheng, according to a bank spokesperson. "The card will offer lots of promotions with the retailer to attract customers, such as free movie tickets," the spokesperson tells CardLine Global. After cash rebates, co-branding is the second most-effective way to attract credit card customers in China, Zhang Hua, banking analyst at Boston-based Celent, tells CardLine Global. "Tianhecheng is a top-grade shopping mall, so the niche market is female and high-income customers in Guangzhou," he adds. Co-branding in China dates back to 1995, when Industrial and Commercial Bank of China launched a co-branded card with Shanghai Airlines, Hua says. "Since then, more and more co-branded cards have been issued," he says. Chinese banks have co-branded cards with various entities, including telecommunication companies, department stores, hotels and insurance companies, Hua says. China Merchants Bank had more than 28 million credit cards in circulation at the end of March. The card it is issuing with Tianhecheng will carry the MasterCard brand.
