Written by Nandini Sethi
The rise of K-POP has changed the entertainment industry on a global scale. In fact, entertainment companies in the West can learn a lesson or two not only in the realm of music production but also in creating a merchandise ecosystem.
The K-Entertainment industry is making bucketloads of $$$ simply by capitalizing on the fandom culture.
Presenting: Photocards, i.e small, wallet-sized photos of K-POP idols that are included in merchandise like physical albums, lightsticks, and tour merchandise.
Photocards have gone from being small collectibles to a lucrative business.
How did Photocards become so significant?
Well, social media.
Instagram and TikTok accelerated a seemingly harmless hobby of collecting photocards to promote trading and selling among international fans. This created a vibrant online marketplace.
Now it has become fan culture – something akin to sports fans collecting sports trading cards or anime fans collecting Pokemon cards.
As a result, physical album sales in South Korea depend heavily on Photocards – which is at an all time high. Meanwhile, western artists are struggling to boost the sales of their physical albums in the era of digital streaming.
The economies of Photocards
The prices of Photocards mainly depend on two factors:
- Demand
- Rarity
Photocards of popular members from certain groups, like Jungkook from BTS, or Lisa from Blackpink are priced much higher than rookie idols.
But here’s what really fetches premium prices: exclusivity.
If a particular photocard is scarce in number, more fans want their hands on it.
Event-exclusive photocards, signed photocards, or photocards that have been discontinued are considered more valuable as fans fight tooth and nail to bag one.
💡 Here’s a little tip for small brands: people are always on the lookout for exclusivity/rarity! Create a ‘I didn’t know I needed this until I came across it’ moment.
When fans purchase a physical album, they know exactly which member’s photocard they want. If they fail to secure this, they purchase multiple albums until they finally get the one they want.
If they are still unsuccessful, they turn to secondary markets like Twitter, Mercari, and Rakuten to buy/trade cards.
Some places in South Korea have even set up Photocard vending machines to lure in customers with an attractive offer: get a coffee… and your bias’ photocard.
There’s another exciting development on the horizon: NFTs. The introduction of NFTs in the photocard market has sparked some debate – will this take away from the tangible aspect of collecting? The K-community is divided; some favour the digital progression while others don’t want the ‘authenticity’ of the experience to wane.
How do companies use the Photocard boom to their advantage?
Firstly, it encourages bulk purchases. This seemingly randomized distribution of photocards encourages fans to buy as many albums as possible to increase their chances of securing their desired photocard.
Secondly, some exclusive variants also drive sales. Sometimes companies launch store specific cards, so you can secure a specific type of Photocard only at Target stores; these launches have mutual benefits for all parties involved.
Thirdly, cross-merchandising. Some Western brands have begun collaborating with K-POP groups to a) feature famous idols on their packaging and in-store branding and b) to launch exclusive brand Photocards.
Exhibit A: TXT x General Mills
On a limited-edition series of cereal boxes. The band members appeared on the packaging of Reese’s Puffs, Cookie Crisp, Honey Nut Cheerios, and Cinnamon Toast Crunch.
Exhibit B: Blackpink x OREO
This collab was one for the books. OREO changed their iconic black and white biscuits to make them… black and pink.
The biscuits and photocards were such a rage that people started duplicating them to sell their own versions!
💡Pro-tip: it’s not just about tying up with a big celebrity name. A creative touch like what OREO did with the black and pink biscuits is what sets the tone for your campaign!
Is the Photocard trend going to end anytime soon?
Nope. Photocards blur the lines between fandom culture and business strategy.
While naysayers might highlight the overpricing and commercialization of a mere piece of paper, the photocard business shows no signs of stopping.
Fans want it, companies want it, so it’s here to stay!