K-wave hits record numbers

How much is the K-pop phenomenon worth to fashion? A Nielsen survey, conducted exclusively for MFF, does the math on the phenomenon that has invaded the last few fashion weeks, with fans lining up at Prada, Dior, Bottega veneta and Gucci shows. The actor from the famous Netflix series Squid Game, Wi Ha-Joon (10.4 million followers on Instagram), generated alone 1 million social interactions sitting front row for the Tod’s show, while Diego Della Valle’s brand totaled 4.9 million interactions during the fall-winter 2023/2024 fashion show thanks to K-talents. Another star from Squid game, Korean actress and model Hoyeon Jung, former Louis Vuitton ambassador and protagonist of the brand’s latest runway show, totaled 924,000 interactions with her runway show-related content. However, Bottega veneta set the record, which confirms the Bts mania.

In fact, Bts leader Kim Nam-joon, with 70.9 million followers on Instagram, generated more than 7.6 million interactions with a picture showing him front row at the Kering maison’s fashion show. Prada, which had already made headlines during Milan men’s fashion week with the arrival of the band Enhypen (12 million followers on Instagram) attracting a crowd of fans outside Fondazione Prada from all over Italy, totaled 1.1 million interactions for the fall-winter 2023/2024 shows thanks to K-talents.

According to the international press, in 2022, the Bts band alone brought in a turnover of 5 billion dollars, equal to 0.3% of Korea’s national gdp, which currently stands at 1.8 million dollars. From front rows to advertising campaigns, Valentino chose Suga (42.1 million followers on Instagram), a member of the Bts, as its global ambassador, while Dior named fellow member Jimin (47.2 million followers). Girl band Blackpink has also conquered fashion. Singer and model Jennie Kim (76.4 million followers) has been chosen by Chanel as the new face and special guest of several events of the french maison. Celine and Dior have bet on Jisoo (70.7 million), while Rosé (69.4 million) has been called by Saint Laurent and Tiffany as brand ambassador. «Hallyu», better known as «Korean wave», is the name experts have given to this global phenomenon. With more than 80 million albums sold in 2022 alone and a fan base of more than 157 million users spread across 116 countries, K-pop is a phenomenon worth more than 10 billion dollars, according to economist Kim Seiwan, a professor at Ewha womans university in Seoul.

However, K-pop is only one of the many aspects of the Korean wave. «Between the worlds of fashion and entertainment there has always been a great complicity, and in recent years this feeling has grown even more. Lately, not only influencers and content creators sat front row at fashion shows, but also idols from South Korea, because new generations want to identify with their favorites. This, of course, is very good for sales», Mauro Galligari, communication manager of Camera showroom Milano – Csm, told MFF. Behind the Korean wave, in fact, there are bilateral market opportunities. On the one hand, Korea is a fast-growing market ranking, according to Morgan Stanley, as the largest luxury consumer with 16.7 billion dollars spent annually, accounting for 10% for maisons.

As a result, the country is an attractive investment pool for brands, especially considering that South Korea has been driving sales from the East for the past two years. «In 2022 Korea confirmed itself as a very dynamic market. It never closed its borders and in fact compensated for China’s stop. Koreans remain among the big spenders in the sector, while the nation is confirmed as an interesting hot-spot for fashion, as it became the new shopping destination for the Chinese», Pitti immagine ceo Raffaello Napoleone explained to MFF. «Korean big companies like Samsung, Hyundai and Kolon are pushing Korean talents and fashion designers abroad. In fact, South Korea is full of interesting, high manufacturing brands that can take root in Italy as well. To further capitalize on the success of talents, they could even launch their own brands in a few years», Riccardo Grassi, founder and ceo of RG showroom, explained to MFF. A future perspective that is confirmed today by export data.

«Korea is at the top of fashion and textile exports to non-EU countries with 263 million euros, up 4% on the year. Italy has been present in South Korea since 2012. However, a precise agreement regarding fashion has not yet been made with the korean government, which does not exclude its feasibility», Napoleone added. «It is a very fashionable nation and Seoul is among the top cities for fashion consumption. This is why it is estimated that for Italy, known for its excellent quality products in the world, Korea will be the first foreign market it will turn to», Grassi added.

This proves that K-pop is not just a source of entertainment. Besides, it is a growing revenue resource thanks to the K-pop and Korean entertainment exchange-traded fund (Etf), a fund launched on september 1, 2022, by Ct investments, a Seoul-based investment firm listed on the New York stock exchange (Nyse). The fund currently has a market value of 2.8 million dollars and includes 30 entertainment companies including Hybe, the record label and agency that manages the Bts.

The fund was established «to provide an opportunity for fans around the world to participate in the growth of the K-pop industry and favor the entry of investors into Korean companies», Jangwon Lee, ceo of Ct investments, explained during the launch press conference. The fund also invests in studio Dragon, the entertainment company that produced Parasite, the first foreign-language film to win an Oscar for best picture in 2020, and in Showbox and Bucket studio, associate backers of the cult series Squid game. (all rights reserved)