Japanese-Korean messaging app LINE has opened their first pop-up store in Singapore, on a prominent stretch of the core shopping boulevard of Orchard Road. It will run for a month and reap immeasurable marketing value from the high visibility and sure-to-grow lines of fans eager to buy their cleverly designed character merchandise.1
I dropped by on its first evening tonight with some colleagues, and we spent between $20–60 each. I would have spent $100, but put down a pack of 100 art postcards ($55) at the last minute. This is on top of the $40 I’ve spent on in-app purchase stickers over the last year or two of being on the platform. I don’t think any other messenger currently comes close in terms of having built brand loyalty or monetization potential that doesn’t involve serving ads or selling personal data.
Standing outside and watching the crowd, I remarked to a UX designer colleague that no other messaging app could pull off something like this in the middle of town, not WhatsApp, not WeChat. He correctly observed that none of the others have strong IP from which to make their own merchandise to even sell in a store.
“And it’s all this bloody kiddy stuff!”, I said, clutching a plastic bag filled with stickers and a pair of mugs that look like the faces of a bear and a bird. “It’s not kiddy,” he started to protest before going, “Oh alright, I guess it is.” Takeaway: “Kiddy” is largely irrelevant in Asia.
18-to-29-year-old females are its “core target,” says (U.S. CEO Jeanie) Han, explaining that in Asia, once girls were using Line, boys followed – and then this young “hip” user base helped bring in older users “like a domino effect.”
“People, especially young folks, are really adopting our stickers,” she says. “The ratio of people who are buying things online like our stickers is actually quite high in the U.S., as well as the people who are using our games inside our platform relative to the total number of users, so we’re quite optimistic in terms of our market in the U.S.” — Techcrunch, March 2013
The crowd lining up tonight was about 2:1 female to male, which seems in line with LINE’s targeting strategy. There were a few people who definitely looked over 40, and everyone present was walking out with stuffed toys, diaries, notebooks, plastic folders, tote bags, mugs, badges and the like, all emblazoned with Brown, Cony, Moon, Leonard, Sally, James, and other characters I can name because I see and employ their images in chat conversations on a daily basis. LINE is lovable, obsessionable. Few others are by design.
Against Facebook Messenger’s 200M monthly active users, LINE is said to have virtually the same MAU (out of 400M registered accounts). In comparison, WeChat (dominant in China) has 355M MAU, and WhatsApp has over 500M. I don’t consider WhatsApp and Facebook Messenger users to be the same thing2, and LINE has the greatest growth potential outside of its home country, especially in Asian countries with an affinity for Japanese culture, whereas the Chinese WeChat is likely to have a harder time. I’m pretty bullish about LINE’s success, even if their apps have a lot to improve on. For the record, LINE also reports significant revenues — $338M in 2013 — versus about $200M for KakaoTalk and $20M for WhatsApp.
- Within minutes of our arrival, I overheard a mom asking her two teenaged daughters, “What’s this about?”, to which they replied, “it’s kind of like WhatsApp.” ↩
- For one thing, WhatsApp is not functionally part of a platform, and probably won’t be merging with Facebook’s in the near future for various reasons. All the other messaging networks are at some stage of offering content, ecommerce, games, and enhanced communication services such as video-calling. ↩