Lotte Home Shopping Inc. has signed a character licensing agreement with Thailand’s TAC Consumer Public Co. (TACC), a lifestyle product and beverage company, as the South Korean retail firm plans to expand its intellectual property (IP) business in Asia.
Established in 2002, TACC is expanding its character IP business throughout Asia.
One of the Thai company’s successful IP collaboration projects is its partnership with Japan’s San-X, a Japanese stationery firm known for creating and marketing cute characters such as Tarepanda, Rilakkuma and Sumikko Gurashi.
TACC’s 2022 sales revenue from its IP license business reached 60 billion won ($45 million), up 15% from the previous year.
Through its partnership with TACC, Lotte plans for Thailand to serve as a stepping stone from which to expand into the Southeast Asian character IP licensing market.
Lotte Home Shopping's teddy bear character, Bellygom, on display at Yeongdeungpo Times Square in Seoul Next month, Lotte plans to showcase its teddy bear character Bellygom through a public exhibition at Siam Center, Bangkok's largest shopping center.
Lotte is also considering selling Bellygom fashion items, beverages, stationery and small appliances at local retail stores.
MAINSTAY TV HOME SHOPPING BUSINESS DECLINES
The Korean company expects annual revenue of at least $1 million from such businesses in Thailand over the next four years.
Lotte has been nurturing Bellygom as a global IP for years, producing material related to the teddy bear, such as animated content, for the overseas market.
Lotte Home Shopping's Bellygom on display at Yeongdeungpo Times Square in Seoul Lotte’s advance into Thailand’s IP licensing market comes as its mainstay online shopping business performance is deteriorating due to a decrease in TV viewership and rising broadcasting fees.
Although the IP business contributes little to its overall earnings, compared to its core business, TV home shopping, Lotte expects the character IP licensing business to have serious global growth potential.
Last year, the company drew people’s keen attention to Bellygom by displaying an oversized Bellygom at Manhattan's Pier 17 in New York City.
