[Consumerwide - Jinil Kang Reporter / Yohan Bok Reporter] The distribution industry began character business competition, which initially began with brand promotion and is now being extended to businesses particularly focused on the fandom economy, which is basically run by the economic activities of character fans. The industry is trying to use characters in a variety of sectors, such as games and corporate production, that go beyond promoting the brand's philosophy and value. This might be a refreshing option for consumers who value character collections.

Hyundai department store has been presenting Heendy, their brand character, passing on the message of "remembering memories of happiness" to the customers. Hyundai Homeshopping also used the Heendy character for goods and a variety of on- and offline-themed events. Hyundai has been focusing on approaching customers while strengthening the brand image by hosting illustration exhibitions, which introduce the Heendy worldview with a theme of happiness in collaboration with popular artists, and unique photozones, which installed a 15-metre-long Heendy at the major stores, including The Hyundai Seoul.

The Hyundai Present, which launched in December 2023, is currently selling goods such as toys, key rings, tumblers, and t-shirts, which contain Heendy designs. Hyundai department store has been expanding their own IP business using characters in full scale, and their first step is to form a corporation with other distribution businesses, such as BGF retail, by releasing jelly products with Heendy designs. Hyundai department store plans to expand their business areas while constantly presenting Heendy IP-based second copyrighted works through active engagements with other relevant institutes and startups in Korea.

Meanwhile, Shinsege is using their authentic character, Puuvilla, a cotton ball character that reminds of a white bear that was made in corporation with a Dutch artist Lieke van der Vorst in 2017, for various corporate projects with global brands such as Kiehls, Iro, and Roger Vivier, besides using them for company promotion. Particularly, the Puuvilla character was used for the pro baseball team, the SSGRanders, which is facilitated by Shinsege Group. Shinsege department store plans to expand in the future and also plans to continue to grow in business models that are using IP, such as releasing goods, digital contents, and products, and making an effort to increase fandom for their character in corporations with a variety of brands.

Bellygom, an authentic character of Lotte Homeshopping that ignited a character trend in the distribution industry in Korea, is currently maintaining 17.8 billion fandom after years of Youtube activities since 2018, and it's been growing into various sectors, such as brand corporations and goods' sales, since their large public exhibition in 2022. It also entered the mobile game market recently for the first time in its distribution history using character IP. Lotte Homeshopping seems to focus on the character business due to its external profit through brand corporate projects and goods' sales, which counts over 20 billion won on an accumulated basis, and they estimate a 20% increase in their sales profit compared to the last year. Furthermore, Lotte Homeshopping is initiating to secure the contents-based license business using their core IP, Bellygom, which involves launching a Bellygom experimental complex stores in Lotteworld Advanture during the year, along with entering the mobile game market.

Hyundai Homeshopping has been using their brand character, Nungom, an environmental character, for the electronic waste recycling campaign, which re-produces new electronic products based on the steel, copper, and aluminium materials on the small and medium electronic household products wastes collected from the independent building complex. Hyundai might expand its business sector using Nungom in the future.

The reporter perceives that the future of character-based business in the distribution market is positive, as a well-nurtured character can create a variety of sources for profit, starting from content consumption to sales of relevant products. Consequently, competition between distribution businesses in the character market is going to be even more intense in the future.