From K-Pop to Anime, it’s the wave of Korean culture which seems to have stuck a note in the hearts of Indian consumers. In fact, this year the love for Korean culture went a notch up with consumers making a dash for merchandise. “In many ways, Korea is not a country, it is K-Pop! K-Pop is a rage, a statement in itself. This rage is eventually big money. It is about music and merchandise for a start. Expect it to grow deeper in the terrain of products and services as well. However, in terms of size K-pop and anime are inestimable. For every legal piece of merchandise there are possibly 6000 illegal copies,” Harish Bijoor, business and brand-strategy specialist, and founder, Harish Bijoor Consults Inc., told BrandWagon Online.

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The global licensed merchandise market was $29,729.08 million in 2022 and is projected to touch $4,47,164.33 million by 2031, growing at a compound annual growth rate (CAGR) of 5.83%, as per a study by Business Research Insights, a business intelligence platform. The report further unveils that the sudden onset of the pandemic created a massive economic transformation, increased a talent shortage and supply shortage due to frequent lockdowns has disrupted the licensed merchandise market growth.

To be sure, social media platforms besides video streaming platforms have played a key role in driving popularity. From Netflix to Amazon Prime Video, currently, every second video over-the-top (OTT) platforms air Korean shows besides Anime. “Rise in demand is directly linked with visibility both offline and online. The market responds to consistency both in quality and availability. Last year we were present in 1,000 retail stores in modern trade in four metros. This year the numbers have crossed 3,000 stores across India. As per gross sales, our Y-O-Y growth is 62.5%,” Neeja Shah Goswami, CEO, Whiskers India, explained.

As correctly pointed out, India has an array of online retailers selling K-pop and Anime merchandise. Kpopmerchandise India, Kpopmerch India – at kpopmerch.in, besides Amazon India currently sells these merchandise. Interestingly, industry stakeholders call this another phenomenon after the ‘Super-hero’. “Post-Covid, there has been a tremendous change in people’s behaviour, which means people are comfortable with shopping online. This has been a big advantage for us in terms of demand. Work from home is another factor for the rise in demand as the demand for casual wear has increased,” Harsh Lal, co-founder and director, The Souled Store, explained. The brand claims to be the only home-grown company which has the official licensing of Anime Naruto in India.

Interestingly, a poll by Hunch, a social discovery app, focused on Gen Z’s leisure habits and focus on anime and drama, revealed that out of the 2,052 participants, 71% favoured Anime, highlighting its huge popularity and cultural impact. Fashion and especially the rise of high-street wear is another reason behind the growing popularity. “The popularity of oversized clothing trends and incorporation of fine prints reflecting current anime and K-Pop trends has further fueled the demand,” Roshan S Bisht, co-founder, ASORT, opined.

The Money-maker

The global sales of anime content along with merchandise are expected to contribute to considerable revenue generation. As a result, the rising preference for Internet distribution and application games, which account for the majority of overseas sales in Japan, is projected to play a key role in propelling the market growth. As per a report by Grand View Research, the global Anime market size was estimated at $28.61 billion in 2022 and is expected to grow at a CAGR of 9.8% from 2023-2030. “Anime merchandise sales have doubled since 2022, which speaks volumes about the resonance of our offerings. Our commitment to anime has not only met but exceeded expectations, with a 50% increase in its contribution to our overall sales,” Stanton Ambrose, head of marketing and PR, Celio India, said.

Meanwhile, Market Decipher’s report shows that the K-Pop memorabilia market is expected to grow at a CAGR of 4.2% during the forecast period of 2023-2033. For Whiskers India, it has been a good year, as it claims to have clocked a 62.5% increase in revenue till date. Meanwhile, it further claimed that its revenue rose 33% in FY22. “With a net worth of Rs 16 crore and a return on investment (ROI) of 15%, our ROI has contributed an additional Rs 2.5 crore to the overall net worth,” Goswami added.

Although The Souled Store’s Lal refused to divulge growth in sales, he claimed that the company invests its marketing spending on performance marketing on platforms such as YouTube, and Instagram, among others. “Direct-to-consumer (D2C) platforms account for 90% of our sales while only the remaining 10% comes from e-commerce platforms such as Amazon,” he noted.

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