With the global animation boom, the overseas merchandise market is growing rapidly, and Japanese general trading companies are teaming up with publishers to fully enter the global distribution business.
On the 3rd (local time), Bloomberg said Japan's leading general trading companies Marubeni, Mitsubishi Corp., Sumitomo Corp. and Itochu Corp. are working with animation publishers to expand sales of officially licensed merchandise in overseas markets, including the United States. Merchandise refers to character- and content-related products sold to fans.
General trading companies originally handled raw materials such as oil, natural gas and grain, but recently have been leveraging their global logistics and distribution networks to expand into the content business. The industry estimates the global animation licensed merchandise market at about $13 billion (20 trillion won).
Bloomberg reported that demand is surging for official products related to animation—such as dolls and figures, apparel and posters—but supply has not kept up.
The United States is a prime example. Many animation fans, unable to find the official merchandise they want, have used proxy-buying services or paid markups to purchase products. Illegal counterfeits have also spread quickly, exploiting this gap.
Bloomberg said Japanese publishers are expanding partnerships with general trading companies that have global distribution networks to increase supply. Mitsubishi Corp. has begun selling merchandise in the United States with Sega and Tomy, and Sumitomo Corp. has partnered with a subsidiary of manga publisher Shueisha. Marubeni has set up a joint venture with Shogakukan to supply official toys, apparel and collectibles to U.S. retailer BoxLunch. Itochu Corp. has invested in a U.S. character licensing startup.
Publishers are pinning hopes on general trading companies because of the complex rights structure in content. In Japan, broadcasters, publishers, production companies and toy makers often co-invest in producing animation, so launching merchandise requires consent from multiple stakeholders. As a result, even when a new title becomes popular, product launches can be delayed by months.
Ed Ravey, vice president of merchandising and marketing at U.S. retailer Hot Topic, said, "Every time a new animation is released, we prepare about 100 products, but in many cases, only a handful are actually available at launch."
Japanese corporations are also using artificial intelligence (AI) to speed up supply. Marubeni is testing technology that introduces AI into the merchandise design review process to shorten screening that currently takes months. At present, people visually check product quality one by one, but if AI conducts the first review, products could be released to coincide with the broadcast timing of the animation.
The global merchandise market is expected to grow going forward. Market research firm Grand View Research forecast that, led by the U.S. market, the animation-related product market will grow to $24 billion (37 trillion won) annually by 2033.