TikTok and Artist Company will launch a global brand business using actors' intellectual property (IP). As the first project, a beauty brand that actor Lee Jung-jae directly helped plan is set to debut in the fourth quarter of this year.
The two companies said on the 1st that they signed a strategic memorandum of understanding (MOU) at the TikTok Korea office in Gangnam-gu, Seoul, to cooperate on a global brand business based on actor IP.
Under the agreement, the two companies will jointly plan and develop brands that reflect their actors' philosophies, lifestyles and tastes. TikTok will provide its global content distribution network, creator ecosystem and commerce infrastructure, while Artist Company will combine its actors' IP with brand planning capabilities.
Unlike the traditional advertising model or brand ambassador approach, actors will directly take part in brand planning and product development as business principals. The companies plan to collaborate across the entire process, from brand planning and content production to expanding touchpoints with overseas consumers.
The first collaborator is Lee Jung-jae. Lee Jung-jae opened an official TikTok account in Aug. and began engaging with global fans. He is also directly involved in planning and developing a new brand that reflects his lifestyle and tastes.
The brand will be in beauty and is being prepared for a launch in the fourth quarter of this year. The companies plan to use TikTok Shop in Japan and the United States to craft market-specific entry strategies and carry out marketing in coordination with local creators.
Starting on the 3rd, they will also run a global fan-participation Q&A campaign, "ASK LEE JUNG-JAE–GLOBAL FAN Q&A." Fans can leave questions in the comments on Lee Jung-jae's TikTok videos, and Lee Jung-jae will answer selected questions directly in video.
Following the $50 million (about 70 billion won) investment plan released in Apr. for Korea's content ecosystem, TikTok said it will use this agreement to expand cooperation into the actor and entertainment industry. Based on the pilot project's results, the companies plan to expand the brand business to cover all actors affiliated with Artist Company.
Jae Hoon Jung, head of operations at TikTok Korea, said, "We will help actors showcase their IP and creativity to the world and connect their overseas fandom to new business opportunities," adding, "We will expand cooperation with the entertainment industry so Korean actors can build a unique presence in the global market based on their distinct appeal and influence."
Park Seung-hyun, CEO of Artist Company, said, "This agreement is a concrete way to connect the influence actors have built to tangible business outcomes in the global market," adding, "We will build a global brand business model unique to Artist Company that starts from actor IP."