‘Squid Game’ tracksuits, sneakers and whisky: Behind Netflix’s latest retail pitch

by

As a long-time enthusiast of pop culture and its impact on our lives, I find myself utterly captivated by the strategic moves made by Netflix in expanding their brand beyond mere streaming services. Having grown up with action figures and merchandise that fueled my imagination, it’s heartening to see this approach being embraced once more, this time by a powerhouse like Netflix.

In the hugely popular Korean Netflix series “Squid Game,” individuals burdened by debt participate in a lethal tournament where they resort to deceit, betrayal, and murdering each other for an opportunity to dramatically improve their lives financially.

The streamer is advertising the second season of this anti-capitalist series in a rather capitalistic way, you ask? By offering merchandise, indeed!

Various retailers such as Puma, Johnnie Walker, and shoe manufacturer Crocs anticipate increased product sales linked to the popular ultraviolent dystopian series, as viewer enthusiasm might translate into purchases of related merchandise.

On Wednesday, Puma unveiled a collection of eco-friendly tracksuits in shades of green, reminiscent of those worn by characters in the show, as well as footwear and other garments inspired by the series. Notably, this German clothing retailer was responsible for designing the authentic costumes used on the set.

As a passionate cinephile, I seized an extraordinary chance to transcend our role as merely a manufacturer of consumer goods. Not only did we want to collaborate on the project, but we yearned to be immersed within the show itself and become an integral part of this cultural sensation that has swept the globe. The hype surrounding ‘Squid Game’ is indisputable; the fandom has been nothing short of insane!

Awards

According to writer-director Hwang Dong-hyuk and lead actor Lee Jung-jae, the central character’s upcoming voyage is expected to focus less on survival and more on pursuing justice.

Puma, along with other international retailers and brands, collaborates with Netflix on merchandise tied to their series and films.

As a movie enthusiast, I’d put it like this: “I, a fan of cinematic masterpieces, can’t help but be thrilled about the Johnnie Walker ‘Squid Game’ limited-edition whisky. The bottle sports a teal label and an iconic striding man dressed in a tracksuit, perfectly capturing the spirit of the show.

Earlier, Netflix collaborated with external businesses to produce Bridgerton-inspired bread blends and Stranger Things-branded Scoops Ahoy ice cream. These items serve as a means for Netflix to keep its audience captivated with their beloved shows and generate enthusiasm.

A Puma tracksuit inspired by “Squid Game”, along with the shoes and a backpack from the same series.

Josh Simon, Netflix’s Vice President of Consumer Products, explained that the shows on Netflix often turn into significant cultural events, sparking excitement among viewers. He believes people are eager to join us in exploring these experiences as they deeply connect with them,” or simply, “Josh Simon stated that Netflix shows frequently transform into cultural touchpoints, causing viewers’ enthusiasm. He suggests that people want to immerse themselves in these stories when they truly resonate with them.

Netflix is seeing a surge in profits with merchandise related to their entertainment offerings. They aim to increase the visibility of their shows and movies while generating extra income by selling items such as T-shirts, alcohol, and other related products. To promote these products, Netflix has opened temporary retail stores and restaurants, organized live events including concerts, and hosted numerous events in over 100 cities worldwide, reaching more than 7.5 million consumers with unique attractions totaling 40 in number.

In the coming year, our company plans to establish permanent retail centers, named “Netflix Houses,” within previously owned department store spaces in Texas and Pennsylvania. These locations will offer a blend of food, merchandise, and immersive experiences inspired by our Netflix programs. If all goes according to plan, we may eventually have around 50-60 Netflix House locations scattered across the globe, as stated by Co-CEO Ted Sarandos at the WSJ Tech Live conference in October.

The surge in popularity of “Stranger Things” opened doors for Netflix to enter the consumer product market, as various brands expressed interest in collaborating with them. In 2019, Netflix formally established its consumer products division, and by 2021, they launched an online retail platform. Over time, Netflix broadened their partnerships with multiple brands and organized popular live events, such as “Bridgerton”-themed balls. This approach, which was initially used by The Walt Disney Company, has been emulated by many others. Disney boasts a substantial consumer products licensing business and once operated hundreds of retail stores in shopping malls nationwide.

Unlike companies such as Disney, Netflix doesn’t possess a vast collection of well-known characters like Mickey Mouse, Woody from “Toy Story”, or Elsa from “Frozen”. Additionally, Netflix’s most popular shows are more geared towards adults, which makes them less suitable for merchandising aimed at children when compared to Disney’s cartoons and Universal’s Minions.

Hollywood Inc.

Is Netflix planning a “Teen Fest” for the show ‘Outer Banks’? Given the success of shows such as ‘Stranger Things,’ ‘Wednesday,’ ‘Bridgerton,’ and ‘Ginny & Georgia,’ Netflix is expanding its young-adult content offerings.

However, the streamer argues that the appeal of its mature content is beneficial, as its audience tends to have disposable income and a willingness to spend.

Netflix boasts a massive global viewership of hundreds of millions, and its top-rated series have ignited unique consumer trends. For instance, enthusiasts have purchased tracksuits to emulate “Squid Game” characters during Halloween or chess sets inspired by the popularity of “The Queen’s Gambit.

Simon mentioned that we now have some leverage to invest in newer films and series, as their fan bases tend to adapt swiftly.

Previously, retail businesses have experienced positive outcomes from offering merchandise tied to Netflix shows. For instance, Bath & Body Works introduced a “Bridgerton”-inspired fragrance line called “Diamond of the Season” in March, which included lotions, soaps, and candles. Across the product’s launch period, these “Bridgerton”-related items accounted for 4% of Bath & Body Works’ total U.S. store sales, as stated by the company itself.

According to the retailer’s chief merchandising officer, Betsy Schumacher, the selected brands complement each other perfectly, and the “Bridgerton” merchandise attracted a significant number of new customers.

She stated that it instantly drew customers to our shops, sparking interest and boosting foot traffic,” or more informally, “she mentioned that it immediately caught the attention of our customers, generating buzz and increasing store visits.

At a recent brand meeting, “Bridgerton” was one of the highly anticipated shows discussed. The influence of “Bridgerton” is apparent in various areas, such as wedding dresses inspired by it, $70 teapots available at Williams Sonoma, and dog jackets priced at $65.

Elena Vrska, from the consumer products marketing team at Netflix, stated during her talk that “We’ve made significant progress, but we’re not planning to slow down now.

For Netflix and its associated brands, “Squid Game” Season 2 offers a significant marketing advantage. The initial season has broken records as the most-watched Netflix series to date, amassing over 330 million views so far. In the upcoming month, Netflix plans to roll out promotional campaigns featuring the distinctive green tracksuits from “Squid Game,” including a 4.56K run (referencing Player 456, the show’s protagonist) during the Los Angeles premiere of “Squid Game” Season 2 next week.

Joyce Salaver, from the brand strategy team at Netflix in consumer products, stated during a recent talk to brands that we anticipate making a global impact with our green tracksuits. We aim to generate an enormous cultural event, one that is uniquely within the capabilities of Netflix.

As a passionate cinephile, I’ve noticed that the partnerships between Netflix and various brands can differ quite a bit. Sometimes, Netflix gets a licensing fee or a slice of the profits, but there’s also a guaranteed minimum income to ensure they make something, regardless of the sales figures.

Professor Larry Vincent from the USC Marshall School of Business noted that, typically, those granted licenses (licensees) assume greater risks compared to those granting the licenses (licensors), like Netflix.

Vincent mentioned that the main advantage lies in the increased visibility and marketing potential, with a larger number of consumers and viewers becoming aware that a particular program is currently running. He explained that these merchandise tie-ins can be thought of as simply another form of marketing strategy.

Hollywood Inc.

Netflix has launched over 800 “Bridgerton”-themed accessories, allowing fans an opportunity to embody characters from the series.

Besides partnering with external brands, Netflix also boasts internal teams dedicated to product development and creativity, aiding in the creation of their own products.

As a film enthusiast, I’ve always been passionate about storytelling – something that was ignited in me as a child when I played with action figures based on my favorite movies and TV shows, reenacting scenes and creating my own tales. Now, it’s my turn to contribute to the world of entertainment, working alongside Netflix on merchandise for our very own live-action series – “One Piece.

Merch is “like a badge of honor” for fans, Owens said.

Owens explained it’s similar to donning the uniform of a sports team. It gives you the sense that there are supporters everywhere.

Read More

2024-12-06 02:57