NO Japan 2 Years... Retail Industry Now Facing 'Selective Boycott'

Cultural Consumption Surges... Alcohol and Apparel on the Brink of Exit
'Demon Slayer' Dominates Theaters
Japanese Game Consoles Also Popular
Japanese Beer Convenience Store Sales Plummet
Uniqlo Closes Major Stores

Poster of the Japanese animation film "Demon Slayer: Kimetsu no Yaiba the Movie: Mugen Train".

[Asia Economy Reporter Lim Chun-han] As the boycott of Japanese products enters its second year this July, the phenomenon of 'selective boycott' is becoming increasingly polarized. While the Japanese animation "Demon Slayer" dominates the theaters and the PlayStation 5 gaming console is so scarce that people pay premiums to purchase it, consumer goods such as Japanese beer and clothing have suffered severe damage and are disappearing from the market. Products that expose consumption to others are actively boycotted, whereas fans flock to products and content enjoyed alone, showing an extreme pattern.

◆ 'Demon Slayer' dominates theaters and bookstores = According to the Korean Film Council on the 21st, the number of moviegoers in domestic theaters from January to May reached 2.94 million. Among them, 70% of the audience watched the Japanese animation "Demon Slayer: Mugen Train." Even after surpassing 2 million cumulative viewers, it continues to perform well. With theaters in a slump due to COVID-19, the success of Demon Slayer has even sparked talk that "the boycott of Japan is over." The story is set in the Taisho era following Japan's modernization, and the main characters are all Japanese samurai. The protagonist's earrings are designed based on Hanafuda cards, which reminded some of the Rising Sun flag, leading to 'right-wing' controversy. Despite many violent scenes including limb amputation, the animation is rated suitable for viewers aged 15 and above. The 'Demon Slayer' craze continues in bookstores as well. Since last month, it has consistently ranked high. According to Kyobo Bookstore's combined online and offline bestseller rankings, Demon Slayer volume 23 has held the overall number one spot for four consecutive weeks since its release.

Japanese-made gaming consoles and games have become so sought after that they are sold out everywhere. In the first half of last year, Nintendo's console game "Animal Crossing: New Horizons" experienced a shortage. When the game was released, hundreds lined up at stores causing a frenzy, and on online secondhand trading sites, it was sold at a premium. In the second half, crowds gathered in front of game stores to purchase the PlayStation 5, and even now, whenever stock is replenished online, it quickly sells out. On the secondhand market, PlayStation 5 is traded at more than twice the retail price. The latest version of the mini-game console "Tamagotchi," called "Jordi Tamagotchi," is also selling well. Jordi Tamagotchi is a game where players raise the Kakao Friends character 'Jordi,' but it is a product made by the Japanese company Bandai. The product name still uses 'Tamagotchi' (a compound of the Japanese words for egg 'tamago' and watch), but the boycott of Japan has bypassed it.

◆ Japanese alcoholic beverages and clothing on the verge of being ousted = The consumer goods market shows the opposite trend. Due to the boycott that has continued for two years, Japanese products are effectively being pushed out of the market. It is difficult to find Japanese beer at major convenience stores. At CU, sales of Japanese beer in the first quarter of this year decreased by 15.6% compared to the same period last year; at GS25, by 67%; and at 7-Eleven, by 11%. These figures represent a further decline after the drop caused by the 2019 boycott. At Emart24, the share of Japanese beer was 17.2% in 2019 but is now less than 1%. The void left by Japanese beer has been rapidly filled by the surge of craft beer.

The situation is similar in large supermarkets. Japanese beers such as Asahi and Sapporo are displayed on shelves but sales are minimal. An industry insider said, "Japanese beer is being promoted with events," adding, "Sales are at levels not much different from when the boycott was at its peak in 2019." Lotte Asahi Liquor's sales last year were 17.3 billion KRW, down 72.2% from the previous year. Compared to two years ago before the boycott, sales have dropped by 86.1%. Operating losses amounted to 12.4 billion KRW, marking two consecutive years of deficits.

Uniqlo was also hit hard by the boycott. Especially, Uniqlo became a target after a Japanese headquarters executive stated that "the impact of the boycott in Korea will not last long." Uniqlo (FRL Korea) recorded sales of 574.6 billion KRW last year, a 41% decrease from the previous year. As a result, Uniqlo closed stores in major Seoul commercial areas: Jongno in August 2019, Gangnam in August 2020, Myeongdong in January this year, and Hongdae in March. A retail industry insider said, "Although the boycott of Japan has somewhat eased, there is still a strong tendency to seek alternatives to Japanese products in directly consumed items, so Japanese products are struggling in food and clothing," adding, "However, in hobby-related consumer items such as animation, gaming consoles, and figures, selective boycotts show an extreme pattern with sales increasing among enthusiasts."

This content was produced with the assistance of AI translation services.