How K-pop stars BTS rule the retail landscape, generating an estimated US$3.5 billion in sales and services last year
- BTS are gaining fans and attention on their world tour, and products they endorse are enjoying huge sales
- Retailers are falling over themselves to get some of that BTS magic to rub off on their products
By Kwak Yeon-soo
Retailers are seeing brisk sales of cosmetics and other goods advertised by K-pop boy band BTS, who are enjoying unprecedented global attention with their ongoing “Love Yourself: Speak Yourself” world tour, according to industry officials.
“BTS have a giant base, regardless of gender, age and nationality,” said an official from South Korean supermarket and convenience store operator a GS Retail.
“The recent example of a cosmetics brand working with GS25, our convenience store chain that has 13,000 branches nationwide, shows consumer demand for easy access to K-pop merchandise.”
The Hyundai Research Institute estimated that in 2018, the value of goods and services generated by BTS reached 4.14 trillion won (US$3.5 billion).
The power of BTS is being felt not only in the music industry, but also in retail sales and tourism.
After naming BTS as the company’s new “face”, VT Cosmetics exploded globally and posted an operating profit of 9.2 billion won last year, up 423 per cent from the previous year.
VT Cosmetic introduced products named after BTS, such as the VT X BTS Collagen Pact and the VT X BTS Jumbo Toothbrush Kit. The success of the collagen product prompted the brand to release a full skincare and make-up range advertised by the K-pop sensations.
BTS members are also the face of L&P Cosmetics’ mask sheet pack brand Mediheal.
Earlier this month, L&P Cosmetics launched a limited edition product, the Mediheal Love Capsule in Mask. The product, priced at 15,000 won, proved to be so popular that all 2,000 boxes sold out in just three hours after being made available.
“Apart from offering additional supplies, we are planning to hold BTS-related promotional events both in stores and through social media,” an L&P Cosmetics official said.
Another commercial collaboration involves the fashion brand Juun.J. The South Korean brand started by selling menswear in 2008. Samsung C&T’s fashion unit took over the designer brand in 2011 and has been operating 120 branches in 30 countries including the US, the UK and Hong Kong.
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On April 13, BTS made their Saturday Night Live debut wearing Juun.J. cargo pants and shoes, catching the attention of viewers.
“At our online fashion mall SSF, we have run out of the most common sizes of the sneakers. We’ve ordered additional supplies,” a Samsung C&T official said. “We have been getting a lot of queries from global fans asking for the same shoes that the BTS members wore.”
The official said the brand had been building a strong partnership with the boy group since before they were high-profile stars.
Hotels are also likely to see increased profits as overseas fans are already booking reservations to attend BTS fan meetings scheduled to be held in Seoul and Busan in June.
