Bellygom and Puuvilla: Entering a New Phase in the NFT Market

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Hyewon Jeong외 2명
Research Associate/
Xangle
Jun 09, 2023

Translated by Lyne Choi

Table of Contents

Introduction

1. Lotte and Shinsegae Venture into the NFT Market with their IP

  1-1. Lotte: Introducing Bellygom to Target the MZ Generation

  1-2. Shinsegae: Puuvilla as an NFT Created by a Famous Dutch Illustrator

  1-3. Both Projects Witnessed Phenomenal Popularity Upon Launch

2. Both Companies Face Challenges Due to Market Downturns and Declining Profitability 

  2-1. Challenge 1: Decreased Interest Amid the Market Downturn

  2-2. Challenge 2: Declining Profitability due to Limited Revenue Structure

3. Building a Participatory Ecosystem and Exploring OSMU Strategies for Increased Value

  3-1. Solution: Moving from a Benefit-Focused Ecosystem to a Participatory Ecosystem and Exploring OSMU Strategies Leveraging IP

  3-2. Bellygom: Polygon Migration, Chainlink Partnership, and the Introduction of SOM and Jelly 

  3-3. Puuvilla: Short-term Interest Surges with Introduction of Crystal Ball NFTs, but Further Improvements are Expected 

Closing Thoughts: The Future of the NFT Market in Korea 

 

 

Introduction

In response to the growing trend of mobile home shopping and the evolving shopping behavior of Generation MZ, numerous companies are actively exploring business strategies targeted at this demographic. In pursuit of this objective, prominent Korean enterprises are advocating for the integration of Web3 technology and leveraging NFTs to expand their businesses, enhance their brand image, and implement marketing strategies, particularly tailored to the mobile and Generation MZ audience.

To support this claim, Lotte Home Shopping and Shinsegae Department Store introduced membership-based NFTs featuring their respective brand characters in mid-2022, signaling a departure from traditional operating methods. Additionally, Bellygom has started migrating to the Polygon network and is introducing ecosystem points along with new NFTs. Puuvilla has also announced plans to mint new NFTs in order to expand its ecosystem. Although their recent performances have been lackluster, we believe that both companies have the potential to evolve into competitive global NFT projects. In this article, we will examine the current state of the domestic NFT market and its future prospects.

 

1. Lotte and Shinsegae Venture into the NFT Market with their IP

1-1. Lotte: Introducing Bellygom to Target the MZ Generation

Bellygom was developed in 2018 by Lotte Home Shopping's character business team to appeal to the MZ generation. Lotte Home Shopping implemented a strategy to promote the character independently, separate from the Lotte brand. Instead of directly featuring Bellygom in home shopping programs, Lotte Home Shopping utilized a hidden camera concept through YouTube video content to showcase the character. This strategic approach proved successful, leading to Bellygom's popularity and amassing approximately 600,000 subscribers, solidifying its position as a successful character intellectual property (IP).

In August 2022, Lotte Home Shopping partnered with FSN's subsidiary, Fingerverse, to mint 10,000 membership-based NFTs featuring the beloved Bellygom character. These NFTs grant owners access to a range of exclusive perks at Lotte's hotels, department stores, cinemas, amusement parks, and more, depending on the tier of their NFT.