Joseph Hwang
* The statistics cited in this article are from the "2023 Music Industry White Paper" published by the Korea Creative Content Agency, part of the Ministry of Culture, Sports and Tourism of the Republic of Korea.
The 2023 K-pop Consumers' Report presents the findings of a survey conducted among K-pop users, providing data on their purchases of live performances and merchandise (goods). The financial burden on K-pop consumers is significant, as these two categories of merchandise are more expensive than purchasing records or music streaming services. Consequently, the consumer report in these two categories provides valuable insight into the purchasing power of dedicated K-pop users.
1. Concert Performances
We will commence with an examination of the statistical data of concert spectators in South Korea. Among the various musical genres, the highest percentage of attendees at South Korean pop concerts (54%) were South Korean pop music fans. Subsequently, musical performances were selected by 39.6% of respondents, while 34.4% indicated that they had partaken in music festivals. These statistics pertain to offline concert attendance. The mean number of remunerated offline music concerts attended per annum was 3.8, with 32.2% of respondents having attended four or more times. This statistic indicates that paid concert attendance is a "seen and seen again" phenomenon.
The highest one-time expenditure among those who attended offline music concerts was 29.4% for the price range of "KRW 100,000 to less than KRW 150,000," followed by 26.8% for the price range of "KRW 50,000 to less than KRW 100,000." As might be expected, the cost of a single concert ticket is higher than that of other music products. I contend that this pricing policy has the most significant impact on the formation of the demographic profiles of music concert attendees. Those with greater financial resources are more likely to attend paid in-person concerts.
Additionally, online concerts, which do not require physical proximity, are becoming increasingly prevalent. In a recent survey, 29.7% of respondents identified the reduced space and time constraints associated with online concerts as a key advantage. This phenomenon is reflected in the benefits of online concerts. Given the inherently localized nature of music performances, the specific time and event location represents a crucial economic factor. This characteristic implies that a restricted range of options is advantageous for concert organizers but disadvantageous for the audience. The greater the number of options available to the consumer, the higher the cost to the performer, who must sell the show to cover the expenses associated with a discerning audience. It can be argued that immediacy represents the most significant performance product value. It can be reasonably deduced that the price of an online concert should be lower than that of an in-person concert. The most probable expenditure on online concert tickets is within "less than KRW 10,000 to KRW 50,000" (39.2%).
The most common reason for not attending either offline or online music concerts is that the tickets are too expensive (53.2%). This indicates that concerts are a highly price-resistant commodity for consumers. Nevertheless, attending a concert is an indication of the fan's greater loyalty to the artist than that of other fans. Music can be considered a taste commodity, thus, it must be of a sufficiently high quality to be consumed.
2. Artist Goods
Most artist merchandise is sold directly by the artists' management companies, except for special cases. As indicated in the 2023 K-pop Consumers' Report, the proportion of individuals who have purchased music merchandise represents 20.9% of the total sample, a decline from the preceding year. The gender ratio of purchasers was predominantly female, and the younger the age, the higher the purchase experience rate. Consequently, when artist management companies plan merchandise sales, they plan to prioritize items designed for female consumers. The most frequently purchased items were photographs, posters, and bromides (45.1%), followed by stationery and other fancy items (38.9%), and cheerleading gear and slogans (34.3%). Given the limited financial resources available to teenage fans, the primary form of artist merchandise mainly purchased has consisted of photographs.
Most respondents (33.9%) indicated spending the most on merchandise, while 30.5% reported spending less than KRW 50,000 and 24.2% spending between KRW 100,000 and KRW 200,000.
Furthermore, they engage actively in the fandom community their affinity for the artists in question, with 80.9% participating in remunerated activities in their fandom.
3. Conclusion
The study presents an analysis of the generational characteristics that define industries. In conclusion, it can be stated that the defining characteristics of a particular generation significantly impact the development of specific industries. The music record industry is capable of mass production and consumption. Consequently, the price elasticity of demand for music records is more flexible than that of other music products. In contrast, when it comes to live performances and merchandise associated with a particular artist, the purchase decision is often heavily influenced by the artist's personality and the consumer's emotional investment. Only those with a strong affinity for the artist and a sufficient financial capacity will typically be inclined to purchase in this area.
Consequently, the K-pop industry is dichotomous, comprising two distinct demographic groups: adolescents and those in their 40s and 60s. The younger demographic exhibits a stronger affinity for the artist's persona and is the primary source of financial backing by their parents, making them the principal consumers of performances and merchandise. The 40-plus, middle-aged, and 60-somethings are the most affluent generation and are therefore likely to be the primary caregivers for their children. This demographic aligns closely with the profile of the "Taylor Swift's Eras Tour" audiences. The polarization of music consumers appears to be an inevitable consequence of the advent of digital music as a dominant market force.
* References and quotations:
https://welcon.kocca.kr/ko/info/trend/1953646
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