'NewJeans Cola' 'IVE Pizza'... The Golden Egg-Laying Idol MD World

Pizza, Chicken, Beverages, and More Idol MD Promotion
Total MD Sales of 4 Major Agencies Expected to Exceed 700 Billion KRW
MD Market Size Estimated to Surpass 2 Trillion KRW

Pizza, chicken, and beverages have penetrated everyday life. This is the so-called 'MD (merchandise) marketing' that stimulates the 'collecting desire' of idol fans. The influence of K-pop is shaking the distribution industry as well. MD is generally referred to as 'goods.' It broadly means products targeting fandoms by utilizing artist IP (intellectual property). The term 'goods' was imported from Japan, while in English-speaking regions, MD is used.

Coca-Cola utilizing NewJeans as advertising models and for products (Photo by Coca-Cola)

Coca-Cola, with 'NewJeans' as its global ambassador, has been selling a NewJeans limited edition package since June. It uses NewJeans' name and logo. It can be purchased at marts, convenience stores, and online. The first company to use MD by leveraging idols in the cola industry was the eternal rival Pepsi. Last year, Pepsi released a limited edition package offering photo cards and photo towels of 'IVE.' IVE is also active as Pepsi's ambassador.

The Most Popular Item is Photo Cards

Ive 'Photocard' Promotion by Papa John's (Photo by Papa John's official website)

It is not just beverages. Chicken and pizza, which we often encounter, are also actively using idol MD. Among MD items, the most popular is often the 'photo card.' Papa John's has been running a pizza discount and photo card giveaway promotion linked with IVE since April. Similarly, Goobne Chicken started an event around the same time where ordering chicken comes with a 'LE SSERAFIM' photo card.

Kwangdong Pharmaceutical's 'Vita 500' released a package with images of LE SSERAFIM members on the label. When there were reactions that the label was hard to peel off, they even released a package that separately provides stickers. This package caused a 'sold-out frenzy' and had a second sale. McDonald's introduced a new menu decorated with NewJeans packaging and held a special event giving away NewJeans stickers, mini standees, and keyrings as prizes.

MD Industry Estimated to Exceed 2 Trillion Won

The K-pop MD market is setting new records every year in terms of scale. Entertainment companies earn about 20% of their total sales from directly selling MD or royalties. For example, HYBE's MD revenue reached 395.6 billion won last year. Combining the so-called 'Big 4' entertainment companies?YG, SM, JYP, and HYBE?the total reaches 617.8 billion won. According to securities market consensus, the combined MD sales of the Big 4 are expected to grow nearly 20% to 747.3 billion won this year. MD also plays a role in entertainment companies achieving record-breaking performances.

The overall market size is much larger. This is because demand cannot be met by production and distribution alone. The types of products are diverse, including clothing, bedding, phone cases, cups, various accessories, apparel, and beauty products. Many small and medium-sized entertainment companies outsource production. For example, Nomers, which operates the comprehensive artist platform 'Wonderwall,' had MD sales exceeding 10 billion won out of 17.2 billion won total sales last year. In the first quarter of this year, it grew 66% compared to the same period last year.

The Korea Foundation for International Cultural Exchange estimated that the domestic K-pop MD market size already exceeded 1 trillion won in 2018. Considering that the K-pop industry, including entertainment company sales, has grown more than twice in scale since then, it is estimated to exceed 2 trillion won. In the past, IBK Investment & Securities estimated the fandom business economy, including the MD market, at 7.9 trillion won.

This content was produced with the assistance of AI translation services.