Popularity exploded in Japan… The identity of hot apps where Korean MZs spend money

Gacha machines at the Seoul International Electronics Center on the 21st / Photo = Reporter Seong Jin-woo

“These days, you need a ‘gacha (probabilistic item draw) machine’ to do business here. There are very few customers coming into the store, but there are several people standing in front of the gacha machine. Because we put inventory into the machine, even though it’s the same product, it sells well.”

On the morning of the 21st, on the 9th floor of the International Electronics Center in Seocho-gu, Seoul. As soon as I went up the escalator, various colorful gacha machines caught my eye.

Mr. Lee, in his 20s, who runs a goods shop here, said, “Instead of being a figure mecca, it has now become a ‘gacha mecca.’” He installed about 50 machines in front of the store early this month. Mr. Lee said, “Last Saturday, the sales from each machine were at least 200,000 won,” and “Without the gacha machine, it is difficult to survive here anymore.”

Seoul International Electronics Center, which has been attracting attention as a ‘figure mecca’, is emerging as a gacha mecca among the MZ (Millennial + Z) generation. Even companies unrelated to figures are busy welcoming customers by introducing gacha machines. Merchants agree that the commercial district is revitalizing thanks to the popularity of gacha.

“Irrespective of industry… Install ‘Gacha machine’ first”
Transformed from a ‘figure sanctuary’ to a ‘gacha sanctuary’

Seoul International Electronics Center, which opened in 1997, was once called one of the ‘three major digital shopping malls’ along with Yongsan Electronics Mall and Sindorim Techno Mart, but has been slowly declining for about 10 years due to the revitalization of e-commerce. The center has maintained its reputation with only the 9th floor attracting figures.

Then, recently, that floor was transformed into a gacha sanctuary. Gacha machines introduced by some companies seeking survival due to the economic downturn have gone viral on social networking services (SNS). It is said that it is now crowded with visitors whose sole purpose is to try out the gacha machine rather than come to buy figures.

Inside a gacha store in the Seoul International Electronics Center on the 21st / Photo = Reporter Seong Jin-woo On this day, people were easily seen in front of a figure specialty store using a gacha machine to win various products. They came here alone or with their partners and looked around the gacha machines in front of the store. Since most figure stores had various types of machines, the entire 9th floor was like a large ‘gacha shop’.

Ms. Hwang, a college student in her 20s who visited this place with her boyfriend, said, “There were so many different types that I walked around for over 30 minutes to choose a machine,” and showed off the mini figure product she had selected. He said, “I’m not really interested in figures, so I didn’t even know a place like this existed. I visited today for the first time, and it seems like a really unique place. It’s fun just walking around like shopping.”

Mr. Kim, in his 20s, said, “I originally visited the center for a different purpose, but stopped by the 9th floor to check out the gacha machine. I used to come here often to buy figures until 2-3 years ago, but the atmosphere has changed a lot in the meantime. Rather, it’s a gacha machine.” “It seems like machines have become the mainstay,” he said.

The product the reporter picked directly through a gacha machine on the 21st. / Photo = Reporter Seong Jin-woo The gacha machine here had previously been installed at several companies by inserting coins, commonly called a ‘draw’. However, these days, most of the machines are electronic, capable of card calculations, similar to those found in gacha shops, which are popular in Japan. The price varies depending on the product type, ranging from 2,000 won to 7,000 won.

I used a gacha machine related to the Japanese animation ‘Banga Banga Hamtori’, which is popular here. After selecting the gacha machine product you want through the kiosk in the center and paying with a card, a plastic capsule automatically rolls out from the machine. When I opened the capsule, I found the main character ‘Hamtori’ doll inside. The vendor said, “It’s rare to get a Hamtori right away, so you’re lucky,” and added, “Gacha is such fun.”

Merchants on other floors of the Kukje Electronics Center have been complaining that “only the 9th floor is open for business,” but in fact, the figure company merchants on the 9th floor also say that the situation has not been easy. In particular, sales, which fell during COVID-19, have not recovered to previous levels, but merchants agreed that with the recent gacha craze, lottery machines have now become the number one contributor to sales.

Some stores have even reduced the number of figure stands and brought in specialized gacha machines. Seongmo, in her 50s, actually changed her business to a ‘gacha shop’ when she installed a gacha machine eight months ago. He said, “Like industrial products, it is difficult to sell figurines by purchasing popular products in large quantities. They don’t make as much money as you think,” and added, “These days, I make a living thanks to gacha machines.”

Gacha machines at the Seoul International Electronics Center on the 21st / Photo = Reporter Seong Jin-woo Accordingly, even other industries that are not related to figures are attracting customers by introducing gacha machines. A representative example is the video game console companies located on the same floor. Mr. Kang, a business owner in his 40s, said, “We brought in a gacha machine two months ago, and the response was so good that we installed an additional one two weeks ago. The number of capsules that go out per day is 120 to 130 per machine, and up to 500 on weekends. Sales are higher than in the main business. “It’s better and I’m satisfied,” he said.

Mr. Lee, in his 50s, who has run a game console company nearby for 24 years, said, “As this place has emerged as a gacha mecca, most companies regardless of industry are busy bringing in machines,” and added, “It’s still good because it’s a regular business, but the video game industry is in such a recession right now.” “So we are thinking about bringing in about 20 machines next year,” he said.

“The ‘kidult’ culture overlaps with the ‘gacha shop’ demand experienced during a trip to Japan”

The reason why the Kukje Electronics Center is emerging as a mecca for gacha shops among MZs is because the number of people experiencing local gacha shops while traveling to Japan has increased, and the ‘kidult’ (kid + adult) culture is also spreading.

Due to the high demand for gacha shops among Korean tourists in Japan, Japanese figure production company Bandai Namco opened an official gacha shop in Korea in February through its Korean branch. Currently, similar gacha shops are opening one after another in major commercial districts such as Hongdae and Sinchon.

Eunhee Lee, Professor of Consumer Studies at Inha University, said, “In fact, purchasing products that can be easily purchased both online and offline in the form of a ‘draw’ means that the biggest factor in consumption is ‘fun.’ Kidult culture is also a process of pursuing ‘fun consumption.’ He analyzed, “It seems that gacha culture is gaining popularity recently because the fun felt in Japan can also be enjoyed in Korea.”

Seong Jin-woo, Hankyung.com reporter [email protected]