Seoul Economic Daily: JYP's Merchandise rose 168% in Q1
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As soon as it came out, it was sold out one after another... Growing 'MD' with fan heart
(planned product) market , called 'idol goods', is growing. Each agency is also reorganizing its business strategy in response to growing sales and market size. In the first quarter of JYP Entertainment, MD sales increased by 168 % compared to the previous year. In August of last year, JYP360 , a subsidiary in charge of IP business including MD , was established. JYP Entertainment announced in the first quarter investment briefing that it would build its own mall within June and expand MD commerce to strengthen the IP business. The trademark of 'Jip Shop' ( JYP SHOP ), which is expected to be its own mall, was registered last month.
Hive's MD and licensing division's sales amounted to KRW 68.2 billion in the first quarter, accounting for 24 % of total sales. This exceeds the proportion of music and music sales, which are continuously declining to 40 % in 2020 , 30 % in 2021 , and 22 % in the first quarter . MD -related sales rose 5.4 % year-over-year. Hive has its IPX headquarters, which operates MD -related businesses, and is conducting product and offline space businesses. It is also diversifying MD products , such as diversifying sales channels through the fan platform Weverse and launching Digital Souvineer . On the 11th and 13th , a discount event at the Music Up Shop at Hive's museum 'Hive Insight' will also be held. YG has a listed subsidiary, YG PLUS , in charge of MD . In the first quarter audit report, ' YG said that he is leading the MD industry through the 'commerce platform', and that sales are steadily increasing as K-pop enters the global market. MDs account for about 20 % of SM 's sales, so its importance is expected to grow.
The success of the MD market can also be confirmed offline. On the morning of the 2nd in Yeouido, Seoul, in front of the MD pop-up store 'The Victory' of Stray Kids and The Hyundai in Yeouido, fans were lined up in a long line even before the opening to receive a waiting number. Some fans even said that they have been doing 'open runs' since dawn after coming up from the countryside.
At the beginning of the operation , not only fans to buy MDs , but also proxy purchasers and resellers flocked to create a chaotic atmosphere. There was no limit on the quantity, so some people were looking to make a profit through hoarding, and foreign companies such as China also came to visit. In some cases, fans who came from afar to buy the limited edition MD turned away because they could not find the goods. In response to the heated reaction both online and offline, JYP Entertainment prevented confusion by issuing a waiting number for admission and establishing restrictions on the quantity and number of purchases.
For idol fans, MD means as much as an album. MDs that appear in time for concerts, albums, and fan meetings are usually limited in quantity. One fan said, “ I think of my singers and stages while watching the MD .” “Even when I was a student, I spent 200,000 won per active period, so I passed on the album.” A JYP Entertainment official said, “Last year, I opened a pop-up store in Japan. , it is the first to be opened in Korea,” he said, adding, “It means that we will continue the growth trend.”
