Reviews say a steep lower in group purchases by Chinese language followers is accountable.
In an trade that thrives on sturdy worldwide gross sales, notably from the profitable Chinese language market, Ok-Pop has hit an sudden downturn. The latest plummet in album gross sales inside China, which has practically halved, is sending shockwaves by South Korea’s leisure sector, as mirrored within the reducing inventory costs of the nation’s main leisure firms.
On November 17, an unusually stark decline was noticed — with JYP Leisure experiencing a major one-day drop of 9.52%, closing at ₩90,300 KRW (about $69.70 USD), its largest dip prior to now 12 months.
The pattern of falling inventory costs was widespread amongst main leisure homes, with YG Leisure, HYBE, and SM Leisure seeing drops of 9.01%, 7.40%, and 5.43%, respectively.
This downturn is attributed to institutional traders withdrawing en masse from the market, as evidenced by the web sale of leisure shares totaling tens of billions of received. Overseas traders additionally participated within the sell-off, with HYBE and JYP Leisure dealing with substantial gross sales from it specifically.
Regardless of optimistic third-quarter earnings, investor confidence waned because the anticipated album gross sales from main idol group comebacks fell brief.
Aespa‘s 4th mini album, underneath SM Leisure, Drama, garnered gross sales of 530,000 copies on its first day, a stark distinction to the 1.37 million copies bought on the primary day of their earlier mini album.
Equally, Stray Children, managed by JYP Leisure, bought 2.39 million copies of their third full album final June, however their newest mini album, ROCK-STAR, solely reached first-day gross sales of 1.88 million copies.
These disappointing figures are partly as a result of marked lower in group purchases by Chinese language followers, a cornerstone of Ok-Pop album gross sales. Daol Funding & Securities stories a steep decline in album exports to China, with main leisure firms solely exporting about $28 million price of albums from January to October this 12 months, a major drop from the $48 million reported in the identical interval final 12 months.
The Ok-Pop trade, which has lengthy been buoyed by its worldwide attraction and cross-border cultural affect, is now dealing with a difficult part in certainly one of its key markets. This downturn in Chinese language consumption could compel South Korean leisure firms to reassess their market methods and discover new avenues for income to mitigate the affect of fluctuating worldwide markets on their monetary stability and artist promotion methods.