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Korean retailers ride on ‘Pokemon Go’ craze

“Pokemon Go” boosts local businesses in Sokcho while retailers enjoy surge in sales of Pokemon-related items

By Sohn Ji-young

Published : July 24, 2016 - 15:57

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South Korean retailers are capitalizing on the explosive popularity of Nintendo’s augmented-reality mobile game “Pokemon Go” with new products and services targeting local Pokemon game enthusiasts and fans.

From a sudden rise in consumer spending at select Pokemon-appearing cities in Korea to the launch of Pokemon-inspired hotels, tour packages and goods, the smash-hit game appears to be leaving a notable imprint on the local retail sector.

Pikachu is surrounded by children during a Pokemon festival in Tokyo on July 18 (AP-Yonhap) Pikachu is surrounded by children during a Pokemon festival in Tokyo on July 18 (AP-Yonhap)

“Pokemon Go,” produced jointly by Nintendo and U.S.-based Google spinoff Niantic, Inc., is a GPS-based mobile game that has users running through real-life locations to discover and collect virtual monsters, such as the all-famous Pikachu, via their smartphones.

Though the game has yet to officially launch in Korea, it has been operational in parts of the country, including Sokcho of Gangwon Province since mid-July and most recently parts of Ulsan and Busan, where the game’s GPS signal is active due to technical glitches.

Eager to play, thousands of avid Pokemon fans here have been flocking to such locations in the past few weeks, boosting business at local retailers in the region and prompting online retailers to introduce an array of Pokemon-inspired products.

A sign welcoming Pokémon Go players hangs inside at a convenience store inside Sokcho, Gangwon Province, one of the few cities in Korea where the mobile game is active. (Yonhap) A sign welcoming Pokémon Go players hangs inside at a convenience store inside Sokcho, Gangwon Province, one of the few cities in Korea where the mobile game is active. (Yonhap)

Among the biggest beneficiaries are convenience stores in Sokcho which have been enjoying a sudden sales boom thanks to peaking demand for cell phone battery charging services as well as portable battery chargers.

CU, the nation’s top convenience store operated by BGF Retail, said its outlets in Sokcho saw their sales from July 11-17 almost double compared to the previous week, thanks to the legions of “Pokemon Go” players in the area.

During the period, sales of “battery charging” services at CU stores in Sokcho rose by 388 percent from the week before while sales of small electronic devices including portable batteries and earphones rose by 82.4 percent, BGF Retail said.


A smartphone case featuring Pikachu on sale at Gmarket (Gmarket) A smartphone case featuring Pikachu on sale at Gmarket (Gmarket)

Game players in Sokcho have been frequenting convenience stores in the area to rest and stock up on necessities such as ice, ice cream and water to fight the summer heat as well, boosting the stores' daily sales, a CU official said.

Joining other smaller businesses which have embraced unique forms of “Pokemon Go” marketing, discount supermarket chain E-mart’s Sokcho branch said it has begun offering free ice water to “Pokemon Go” players who capture a Pokemon on its premises.

Targeting Sokcho-bound travelers, scores of mobile-commerce companies including Ticket Monster, 11st Street, Gmarket and Auction began organizing day-trip bus services from Seoul to Sokcho starting from July 12.
 
The Haeundae Grand Hotel in Busan and Pokémon Korea celebrate their partnership during a ceremony held at the hotel on July 21. The hotel is offering diverse Pokémon-themed rooms, merchandise and eateries this summer as part of its joint promotion with Pokémon Korea. (Yonhap) The Haeundae Grand Hotel in Busan and Pokémon Korea celebrate their partnership during a ceremony held at the hotel on July 21. The hotel is offering diverse Pokémon-themed rooms, merchandise and eateries this summer as part of its joint promotion with Pokémon Korea. (Yonhap)

Meanwhile in Busan, the beachside Haeundae Grand Hotel has partnered with Pokemon Korea Co., in charge of all Pokemon merchandising in Korea, to offer specialized Pokemon-themed rooms, merchandise and eateries that tug at the hearts of local fans.

Reflecting Pokemon’s resurgent appeal, sales of Pokemon-related toys, stationery and mobile accessories have surged as well. 11st Street saw sales of Pokemon items during July 11-17 rise by 57 percent compared to the previous week while Ticket Monster said sales of such products rose by 211 percent during the same time frame.

Online retailer 11st Street is even holding a promotional event inspired by “Pokemon Go” — dubbed the “11Mon Go,” in which users can find and collect “11Mon” character while shopping on the website. Those who collect all the characters are eligible for prizes including round-trip bus tickets from Seoul to Sokcho, according to 11st Street.

By Sohn Ji-young (jys@heraldcorp.com)