How Korean retailers leverage the rising popularity of Sanrio characters to boost sales

Many domestic retailers are collaborating with Sanrio to launch products featuring Sanrio characters as consumer interest in Sanrio has considerably increased, surpassing others characters. The characters from Japanese company Sanrio are making their way into the goods market in South Korea, from coffeehouse chain’s beverages to desserts in luxury hotels. 

Although the Japanese characters were first introduced to Korea in 1998, Sanrio Korea failed to gain public recognition with Hello Kitty. Sanrio Korea subsequently launched other characters such as My Melody in 1975, Cinnamoroll in 2001 and Kuromi in 2005. Those animal-shaped characters captured young adult customers’ attention, however they were limited to the local stationary market. In 2021, short-form video platforms such as TikTok and Instagram Reels have become a powerful marketing tool which expands the market reach for the character industry. Adult consumers are reported to actively engage in character consumption as the domestic character industry in Korea grows. 

From April, Baskin-Robbins Korea has been engaging in partnership marketing with Sanrio. Sanrio characters such as My Melody, Hello Kitty, Cinnamoroll and Kuromi are not only featured on the Baskin-Robbins cups but the affiliate of SPC Group also introduced a variety of new desserts and. Baskin-Robbins Korea presented their official merchandise with Sanrio, including AR photocard, photocard holder, bag, mini carry bag and smart tok.

In order to promote their new flavor with Sanrio in April, they also leveraged ChatGPT to create an advertising video, featuring My Melody and Kuromi. As a part of the taste-of-the-month events, the two Sanrio characters visit Baskin Robbins castle to discover the taste of April. “Once Spoon a Time” marks the first time that a Korean firm utilized a new-concept marketing based on an AI chatbot. 

Paradise City, a hotel and resort complex located in Incheon, introduced their package deal with Sanrio characters in April, particularly My Melody and Kuromi. The 5-star complex offers exclusive Sanrio goods along with extra package benefits such as free pass to theme park Wonder Box, swimming pool, Kids Zone, fitness and Paradise Art Space. The package titled “Saranghae Paradise” will be available from mid-April to the end of August. 

According to Ediya Coffee officials, they have found that interest in Sanrio Korean coffee franchise Ediya Coffee consistently remained high after analyzing search trends over the past years. The Korean coffee franchise announced their recent collaboration with Sanrio Korea to launch beverages, snacks, gift cards and merchandise featuring Sanrio characters from June 20. Ediya’s new summer beverage will be represented by a character such as My Melody for Strawberry Flatccino, Kuromi for Mango Peach Ade and Pompompurin for Choux Cream Flatccino. 

While product sales at offline stores and online malls account for 61 percent, Sanrio generates 39 percent of its revenue from licensing agreements and royalties. Domestic retailers are rushing to hop in the trend with Sanrio characters to enhance brand awareness that directly increases sales. 

REFERENCE

1. Hwa, J. Sanrio characters gaining popularity in Korea amid diplomatic thaw. Pulse by Maeil Business News Korea. (n.d.). https://pulsenews.co.kr/view.php?year=2023&no=446209
2. Kim, H. (2023, April 30). Retailers ride on Japan marketing to boost sales. Koreatimes. https://www.koreatimes.co.kr/www/tech/2023/04/419_350005.html
3. Lee, H. (2023). Baskin-Robbins Korea creates advertising video using ChatGPT. Korea News Plus. https://newsarticleinsiders.com/baskin-robbins-korea-creates-advertising-video-using-chatgpt
4. Herald, K. (2017, January 31). Korean character industry grows fivefold in 10 yrs. The Korea Herald. https://m.koreaherald.com/amp/view.php?ud=20170131000690