August 25, 2026
We will elaborate a little more deeply on the news briefly covered in the newsletter.
NEWS #1 Can a Single Name Block a Business? IP Expansion and Trademark Risk
'K-Pop Demon Hunters' is a work that has already proven its success in terms of the content itself. However, what actually held it back was not the story or the characters, but the 'name.' There is a reason why this incident should be viewed not as a mere happening, but as a structural risk in the IP business.
Trademarks are protected based on the 'scope of goods and services,' not the name.
Many people view trademarks solely as a matter of whether names overlap, but in reality, the key lies in the scope of goods and services designated during registration and how closely the name relates to that scope. A name that would not have been an issue if it existed only as an animation title can clash head-on with trademark holders already active in that product category the moment the business expands into music, performances, tickets, or merchandise sales. Even if the registered categories differ, conflicts can still arise if consumers perceive a connection significant enough to mistake them for originating from the same source. In other words, trademark risk is not merely a matter of naming; it is an issue that must be re-evaluated at every moment the business scope is expanded.
As content becomes more successful, trademark risk also increases.
If 'K-Pop Demon Hunters' hadn't been a hit, we wouldn't have pursued a concert tour or expanded into the merchandise and ticket business. However, thanks to its success, the business grew, and as the business expanded, the probability of conflicting with existing trademarks in other industries also increased. Therefore, the more successful an IP becomes, the less likely it is to be free from trademark issues; rather, it must be managed with greater sophistication.
What are the essential factors to consider if you are planning IP expansion?
When choosing a name for a work or character, conducting a trademark search once is not the end of the process. You must verify whether the name is permitted in this industry every time you launch merchandise, open a pop-up store, plan a performance or event, or expand overseas. Especially when expanding into fields with large consumer touchpoints and many existing brands, such as music, performance, and entertainment, not begrudge the time and cost spent on preliminary research; doing so is ultimately the way to prevent larger costs in the long run. If you are planning to expand your IP, keep this in mind and operate safely. If you are feeling anxious about trademarks or intellectual property rights, Inner Booth is here to provide insights to help you conduct your business safely.
NEWS #2 What is the Pompompurin collaboration really aiming for? The Price Ladder Strategy!
On August 20th, Kakao Friends unveiled a Pompompurin collaboration. If you are an IP holder, there is something worth noting here. If you view it simply as "goods featuring cute characters dressed in seasonal food," you are missing something. However, if you examine the details closely—from the composition of 13 types of merchandise and the 50,000 won threshold for free gifts to the free digital goods and the offline-exclusive packaging service—a strategy becomes apparent.
Why Is There a Hidden Strategy in the 13 Types of Merchandise?
It is no coincidence that high-priced items like medium-sized dolls were released alongside affordable idea products like misutgaru cups and rubber gloves. The structure encourages high-involvement fans to choose the dolls and those who want to participate casually to select the low-cost idea products, thereby driving fans of different budgets to make a purchase. In other words, this case demonstrates that to target multiple consumer segments simultaneously with a single character, one must create a 'price ladder' rather than relying on just one product.
Wait, did you know that free digital merchandise is an investment, not a loss?
While physical merchandise is intended for sales, many people view digital merchandise simply as fan service. Of course, distributing digital goods like wallpapers or cursors for free does not directly contribute to revenue. However, they serve to keep potential customers who are not yet ready to open their wallets within the brand's worldview. Even if they don't buy today, it ensures they continue to encounter the characters on Instagram, increasing the likelihood that these interactions will lead to purchases during the next collaboration. Therefore, when planning a merchandise strategy, it is necessary to view free content not as a "cost without revenue," but as "securing a fanbase for future sales."
What offline-exclusive services sell is not a product, but an experience.
The potato bag packaging service is trivial in terms of cost. However, it creates an "experience that cannot be bought online" that is offered only to fans who visit the physical store. This feature has the effect of establishing a separate reason for the existence of the physical store without cannibalizing online sales. In a sense, it separates online and offline so that they play different roles rather than competing over the same products.
What should the IP holder check right now?
This principle applies equally to small-scale indie IPs. When releasing merchandise for a single character, instead of listing only one price range, intentionally mix high-end, mid-range, and low-end products to lower the entry barriers for different fan bases. It is also important to prepare separate free content (digital goods, emojis, wallpapers) to retain "fans who participate without buying" within the brand's universe. Finally, if you have offline touchpoints, do not sell the exact same items as online; instead, add a small experience that can only be felt there. The key is not the individual merchandise items, but how broadly this overall composition embraces the fandom.
NEWS #3 The Pitfalls of Expansion Speed 💥 Popularity and Profitability Are Not Proportional?
As the global popularity of the 'Labubu' craze wanes, Pop Mart's sales growth rate in the first half of the year slowed significantly from the 200% range last year to 24% this year. However, the figure to pay attention to here is not the sales growth rate (24%), but the fact that net profit fell short of market expectations. The fact that sales increased but profits did not keep up with expectations means that the costs of generating those sales increased by that amount.
The speed at which sales are increasing can't keep up with the popularity.
Opening new stores, hiring operational staff, and stocking inventory takes time and fixed costs. On the other hand, buzz generated by social media rises and falls much faster. If you start expanding stores at the very moment when popularity explodes, like with Labubu, the hype may have already died down by the time the stores actually open. Therefore, Pop Mart’s move to expand its U.S. stores to over 100, even as overseas sales have declined, serves as a test of whether it has the foundation to handle this.
In fact, if you analyze the Labubu, you can see the relationship between buzzworthiness and profitability.
Looking at Pop Mart's sales figures, it's not that revenue decreased in all regions. While sales in mainland China, Hong Kong, Macau, and Taiwan increased by 47%, overseas sales dropped by 11%. This is because China has long been expanding its offline stores and building a base of repeat customers, whereas the overseas market was entered hastily, riding on social media buzz. Sales in the overseas markets entered based on hype fluctuated significantly as that hype faded, whereas the Chinese market, having established distribution networks and repeat customers, acted as a relative buffer. Therefore, before proceeding with overseas expansion, it is crucial to first build a foundation that can sustain sales, such as offline distribution networks or attracting repeat customers.
Now is the time to expand vs. to solidify the foundation?
Even with a small-scale IP, there is a temptation to hastily expand distribution, stores, and merchandise production when popularity suddenly skyrockets. However, this case demonstrates that rather than immediately expanding at the peak of buzz, it is safer to determine the pace of expansion by first verifying whether that popularity is sustained over three or six months. This is especially true for decisions involving high initial fixed costs, such as overseas expansion; it is necessary to make judgments by examining the profitability curve alongside the revenue curve.
NEWS #4 Why is the K League partnering with the same partner for the third year? Recurring strategy
The K League has partnered with Sanrio once again, marking its third consecutive year of collaboration. However, brand partners are missing something if they view the K League and Sanrio collaboration merely as "another character pop-up opening." This collaboration, which began in 2024 and continues for three years, is noteworthy because it chose to repeat the partnership with the same partner instead of seeking a new one every time.
Why didn't I find a new partner every time?
Whenever we collaborate with a new IP, we have to start from scratch, handling everything from licensing negotiations and building character recognition to predicting fan reactions. On the other hand, a partnership that has been going on for three years starts with already proven response data and a fanbase. The K League’s decision to renew its contract with Sanrio instead of seeking a new character brand every year is closer to a choice of prioritizing the efficiency of a proven relationship over the uncertainty of a new partnership.
The character remained the same, but the single setting of 'field training' made a difference.
What actually changed in this collaboration wasn't the characters, but the 'setting.' We didn't redraw the existing characters or add new licenses; we simply added a background story about 'going on a training camp,' but the single detail of the characters appearing tanned generated new buzz.
From a brand partner's perspective, this point is important because it is easy to assume that a new character or IP is necessary to generate buzz whenever a new collaboration is planned. However, this example demonstrates that the same effect can be achieved simply by adding a new background story tailored to the season or event to existing characters or mascots. It is a method of creating buzz by simply swapping out the 'story' of existing assets, without the need for character development or additional licensing costs.
Instead of looking for a different IP every time, try making this the next season of collaboration.
The best time to plan the next season is immediately after a collaboration ends. If you keep data on the settings, channels, and product categories that responded well during the collaboration, it serves as the strongest basis for future proposals or budget negotiations.
The problem is that consistently tracking this data, re-identifying IP for the next season, and negotiating terms is too labor-intensive for a brand partner to handle alone. At Innerbooth, we organize your collaboration history and achievements to match you with suitable IP candidates for the upcoming season. Repetition is not laziness; it is the most efficient way to utilize your assets. And if you undertake this repetition with Innerbooth, you can proceed easily and comfortably.
NEWS #5 What to check before collaborating with an indie IP like Gamjasungi?
As social media-driven characters like Ganadi and Gamjasungi generate buzz comparable to that of major corporations, an increasing number of brand partners are seeking to collaborate with indie IPs. However, since their methods of popularity are fundamentally different from those of established large IPs, the points that need to be verified before collaborating also differ.
Popularity is created not by the worldview, but by being 'good enough to be used as a meme.'
The fact that 7 out of the 8 versions of Ganadi's Kakao Emoticons made it into the top 100 is not due to a solid worldview. Instead, because they can convey emotions or situations using only short phrases and intuitive facial expressions, netizens repeatedly used and shared them like memes, thereby driving up their rankings. This implies that even for characters currently trending, their popularity largely depends on algorithms and the flow of meme culture. If you are considering a collaboration, you should not just look at the reactions of the last month or two, but also examine how consistently they are being reproduced in various contexts.
TIP
Popularity that is briefly concentrated on a single channel or event fades quickly. Conversely, characters that are continuously used across multiple channels and contexts have a longer lifespan in terms of buzz.
If you are dealing with a trending indie IP, its popularity may fade faster than expected due to social media-driven hype. Therefore, rather than trying to win with large volumes and long-term contracts from the start, it is better to gauge the reaction first through short-term collaborations. If the response is positive, it is safer to gradually extend the duration. Adding limited quantities or random configurations can also amplify the purchase effect in that moment, even if the hype is short-lived.
NEWS #6 Worldview Recycling Strategy: How to Sell 11 New Products as a 'Family Photo'
At first glance, the mascot collaboration between Duolingo and Luckin Coffee might seem like lighthearted, buzz-generating marketing. However, it is worth noting that it has continued for over a year, generating recurring exposure and sales conversions. It is a particularly high-efficiency example in terms of marketing costs, as it generates buzz without separate content production expenses whenever a new product is launched.
An unusual collaboration that generated buzz?! It’s not just a simple new product promotion.
We simply assigned a relationship—marriage—to the mascots of two brands that previously existed separately, and their audiences began to naturally overlap within a single piece of content. This distinguishes it from collaborations that merely place the two logos side by side. Consumers follow the story rather than the product, and in the process, the fandoms of the two brands cross over to each other, spreading buzz without any advertising. The key point is that we achieved this effect by adding just a single setting to our existing mascots, without developing new characters or licensing major IPs.
The worldview expanded as the characters met.
The real key point of this collaboration isn't that 'Brand A lent its character to Brand B.' It is that the two characters met in person and formed a relationship. Duo was originally a character that existed only within Duolingo, and Lucky was a character that existed only within Luckin Coffee. However, through a single event—marriage—the two characters entered each other's worldviews. By conducting this character collaboration, the target audiences of both brands became aware of each other's existence. Furthermore, thanks to this unique collaboration, even people who were unfamiliar with the two brands became aware of their existence.
The worldview expands with every new product release.
Usually, the announcement of a new product ends with just a single word like, "This product has been released." However, this collaboration established the 11 new products as the two characters' "11 children." Therefore, when the next new product is released, it becomes the next story in the worldview, where "a child was born between Duo and Lucky." In other words, by giving a story to the collaboration, each product became a device that expands the worldview.
Can any brand copy this method?
The advantage of expanding a worldview by having characters form relationships like this is that people spread it on their own without the need for separate advertising. Since the premise is humorous, comments and sharing occur easily. However, if this humorous tone does not match the brand image, it can backfire. If a brand where trust and professionalism are important adopts such a lighthearted premise as is, it can actually give the impression of being "frivolous."
Therefore, if your brand has its own character or mascot, establishing a 'relationship' with another brand's character can be a good approach rather than simply attaching your character to your products or services. However, since the first step is to select a counterpart that matches the tone of your character, I recommend carefully comparing the target audience, IP, and visual style in the inner booth before making your selection.
How about these characters?
