Netflix's global hit 'Squid Game' has returned for season 2. Corporations in South Korea are showing efforts to maximize marketing effects through partnerships with the Squid Game intellectual property (IP).
However, some are concerned that corporations that paid a large IP partnership expense to ride the coattails of Squid Game's popularity may not achieve the expected advertising and marketing effects.
According to the advertising and marketing industry on the 22nd, Ottogi's cumulative sales of two new 'ppusyeo-ppuseo' products launched in collaboration with Squid Game season 2 exceeded 1.6 million units in about 50 days since their domestic release.
HiteJinro has launched the 'Chamisul Squid Game Edition' in collaboration with Squid Game season 2. Shinsegae Department Store has set up an 'experience space' that embodies the Squid Game set at its Gangnam and Busan Centum City locations and opened a goods store selling 300 collaboration items developed using Squid Game IP content.
In particular, CJ is utilizing the Squid Game IP for global advertising and marketing. CJ Olive Young's private brands 'Bring Green' and 'Wake Make' will unveil the Squid Game season 2 collaboration edition. Collaboration products will start selling in nine countries globally, beginning with the official online mall of Olive Young at the end of December.
CJ CheilJedang will introduce a variety of K-foods including dumplings, tteokbokki, seaweed snacks, bungeoppang, and gimbap as part of the 'Bibigo x Squid Game' special edition in 14 countries including the U.S., Europe, and Japan.
Corporations are launching Squid Game content IP partnership products one after another to leverage the popularity of Squid Game to promote their brands in the global market and boost sales.
For domestic corporations pushing for international expansion, combining their brand image with the Squid Game content IP, which gained recognition through the global online video service (OTT) platform Netflix, is of utmost importance, as it allows for an easier expansion of advertising and marketing influence overseas.
Released in September 2021, Squid Game season 1 became immensely popular, ranking first in Netflix viewership in 94 countries. Currently, there are high expectations for season 2 of Squid Game, as it has already been nominated for the Best Television Series award at the upcoming Golden Globe Awards in January.
However, there are concerns that the advertising and marketing strategies of corporations trying to capitalize on the popularity of Squid Game may not be as effective as expected, due to the uncertain box-office performance of Squid Game season 2.
The expense of the Squid Game content IP partnerships is also a significant factor. According to the advertising and marketing industry, the expense for the Squid Game content IP partnership (contract fee) varies by type, with 'passive partnerships' costing less than 1 billion won, while 'active partnerships' are reported to range from 2 billion to 3 billion won.
A passive partnership is a collaboration where Squid Game characters are simply featured on products for sale, while an active partnership entails developing products linked to Squid Game and selling them.
'Bring Green,' a functional vegan natural brand of Olive Young, is a prime example of an active partnership. Inspired by the game 'Mugunghwa Blossoms Have Bloomed' from Squid Game, Olive Young has planned a Squid Game season 2 collaboration edition where the character Younghee perfectly aims to eliminate troubles.
Furthermore, it is known that in addition to the contract fee, approximately 4% to 9% of product sales from Squid Game content partnerships must be paid as a fee to Netflix.
Therefore, the industry believes that the Squid Game IP partnership collaborations are being conducted more for the purpose of promoting their brands domestically and internationally in a limited time frame than for generating profits.
Professor Eom Nam-hyun of Hongik University noted, 'Corporations looking at overseas markets are pursuing collaboration strategies that incorporate the global content IP of Squid Game into their brands. The issue is whether it can achieve explosive popularity like season 1. The IP partnership expense was likely set based on season 1, but it remains unclear whether season 2 can attract the same global audience as season 1.'