Coupang has opened a platform dedicated to merch. As pop-up stores (temporary shops) and collaboration goods aimed at fandom spending have taken hold as a new box-office formula for department stores and convenience stores, Coupang, the e-commerce company, is moving to target consumers who are emerging as a new spending driver by willingly opening their wallets for content they love, such as characters, games, animation, and idols, despite high inflation and a consumption slump.
According to the retail industry on the 1st, Coupang unveiled a collaboration product specialty section, Coupang Collabo Club, on the 28th of last month. It is a platform that brings together collaboration goods with global characters such as Sanrio, Chiikawa, Crayon Shin-chan, and Pokémon, as well as K-pop artists and influencers. To coincide with the launch of the specialty section, Coupang is also running a pop-up store in Mapo District, Seoul, from the 29th of last month through the 7th. On site, customers can try products and purchase them via QR code. The items customers order can be delivered the next day by Rocket Delivery. Coupang said the offering targets demand for easier, faster purchases of fandom merch and limited editions.
Behind Coupang's strategy is the expansion of so-called otaku money. Otaku money refers to consumption that does not spare expenditure on products and merch related to beloved characters, games, animation, idols, and creators (influencers). Because it is relatively less sensitive to economic conditions and comes with high customer loyalty, it is cited as a consumption trend drawing attention in the retail industry.
According to payment data analysis released in April this year by NH Nonghyup Bank, toy-related expenditure by those in their 20s and 30s jumped 224% from a year earlier. Convenience store CU also saw toy sales from the 1st to the 11th of last month rise 75.1% year over year. The trend appears to reflect character goods such as Pokémon card packs and Sanrio stickers sold during the Children's Day season. Among all purchasers, those in their 20s accounted for 33.1% and those in their 30s for 28.3%.
Industry watchers say consumers in their 20s and 30s with purchasing power are driving growth in the fandom spending market. Even if they close their wallets for everyday purchases due to high inflation, selective spending has strengthened for tastes and experiences they value, fueled by nostalgia for characters, games, and animation they enjoyed in childhood.
A retail industry official said, "Consumers in their 20s and 30s tend to pay willingly for content and tastes they like rather than simply seeking the cheapest product," adding, "A consumption culture has taken root that goes beyond simple product purchases to express one's tastes and identity."
The retail industry is already feeling the impact of otaku money. The MapleStory pop-up store that Lotte Department Store has been operating at Lotte World Mall in Jamsil from the 22nd of last month through the 14th surpassed 10,000 visitors in the first three days, including the opening weekend. Shinsegae Department Store's pop-up sales related to subculture last year rose 71% from a year earlier, and during the same period, Hyundai Department Store's pop-up sales for intellectual property (IP) content increased 38%. Notably, of the more than 600 pop-ups Hyundai Department Store rolled out last year, over 40% were events for IP content such as games and animation.
In particular, the industry views Coupang's latest move as being more about acquiring new customers and strengthening platform competitiveness than simply expanding merch sales. In fact, among teen and 20-something customers who attended Hyundai Department Store's pop-up events last year, 60% were first-time users of Hyundai Department Store. Content such as games and animation drew in young consumers who had no previous department store experience.
A retail industry official said, "As the IP market grows and the taste-driven consumption trend becomes more pronounced, previously scattered collaboration goods across characters, idols, games, animation, and influencers have been bundled into a single specialty section to target demand," adding, "Given this market's high share of limited editions and collaborations, allowing consumers who once had to line up at opening to receive items the next day via Rocket Delivery is a key strength." A platform industry official said, "While department stores and convenience stores have led with space and experience, Coupang is pushing otaku money with Rocket Delivery," calling it "an attempt to combine taste-driven consumption with instant consumption."
Seo Yong-gu, professor in the School of Business at Sookmyung Women's University, said, "Even in prolonged downturns, consumption that appeals to memories and emotions often grows," adding, "If the past competition was about who could create more buzzworthy pop-ups and experience spaces, the key competitive factor going forward will be how to connect those to platforms, delivery, and content experiences."