South Korea’s merch-producing platforms target influencers 

Digital content creators in South Korea – YouTube partners, Tiktok creators and webtoon writers – are no longer relying solely on subscriptions to generate income. 

The influencers and their management agencies are exploring ways to create unique merch that incorporates the influencers' characteristics and branding. 

A multi-channel network (MCN) is a company that provides consulting and other support to various content creators and channels to promote successful content production. 

MCNs were initially part of YouTube, a video streaming platform owned by Alphabet Inc.’s Google LLC. That is no longer the case. 

DIA TV and Sandbox Network Inc., two of Korea's dominant MCNs, have become increasingly bullish on creating merch related to their signed creators. 

DIA Market, a marketplace operated by DIA TV, sells creator merch and related products.

For example, a mukbang or eating-show YouTuber Haetnim worked with Chungju city government, a region famous for its apples, to create an apple jam.

Sandbox runs a similar platform called merch-merch.com where one can find T-shirts with YouTuber Dotty’s slogans printed on them and cell phone cases with photos of beloved cats from popular pet channels. 

Profit from merch sales accounts for up to 20% of Sandbox’s total revenue. 

A CHANGING CREATOR ECOSYSTEM

In addition to the in-house production of such merch, startups that help influencers develop and distribute such products are also witnessing increased demand. 

Morpple Corporation’s Marpple Shop and Handhug’s Jellycrew do just that.

Global creator commerce firm LTK, formerly known as rewardStyle or LIKEtoKNOW.it, recently entered the Korean market.

“We are entering a world in which every creator is his or her own business,” Marpple Park's co-founder Park Hye-yun told The Korea Economic Daily. 

The process in which the creator communicates with fans becomes content in and of itself, and the end product also becomes content in a full cycle of content creation. 

More than 35,000 creators are registered as sellers on Marpple Shop, where the number of items for sale exceeds 800,000.

Marpple Shop serves the role of a merchandising director to each seller – taking care of the design, manufacture, sale and distribution of products. 

“Whereas in the past a product developer would make a product and try to sell it, the process has now been reversed to where customers, in this case a content creator's fans, will be the driving force behind product development.” 

Creator merch has not solidified its footing as an integral part of the creator ecosystem.

“The main agent of sales is now the creator rather than the sales platform operator,” stressed Park.

In other words, each creator is a de facto independent entity and shares fees incurred from sales with the platform operator, rather than acting as a minuscule part of a huge sales ecosystem managed by the platform operator. 

Industry insiders say the creator commerce market is at a transient stage. 

While the merch is steadily becoming commercialized, a solid business model has yet to be established.

“The keys to success will go to whoever is first to create a business model where creators and their fans can collaborate and share the fruits of their shared efforts,” an industry insider predicted.

PLATFORM BUILDER

Global fandom business startup bemyfriends helps creators wade through the process of merch monetization. 

The company on April 21 launched its bespoke fandom platform builder b.stage, which lets creators or brands build their own platforms.  

The product offers the whole gamut of tools needed, from content exposure to e-commerce. 

On May 10, CJ Corp. announced it will invest 22.4 billion won ($17 million) in bemyfriends on a strategic partnership. 

“Creators are making way less than their production value,” said Lee Ki-young, who recently joined the company as a co-CEO. 

The former CEO of Dreamus Company pointed out that platforms are taking in as much as 30% of total revenue. Lee stressed that going forward, creators, rather than platform operators, will be in the driver's seat. 

Explaining that existing platforms or channels are not necessary for a creator to promote content, Lee said he is committed to providing solutions through which creators can generate revenue freely from their own platforms. 

Write to Eun-Yi Ko at koko@hankyung.com
Jee Abbey Lee edited this article.