Experiment with TWICE Drives JYP to Beat SM on Stock Market Value for the First Time
by Kristine Sage
6 months ago
Going back to 2015 when the stock market price of JYP Entertainment was 4,290KWD, far behind SM Entertainment and YG Entertainment. But now, August 2018, the stock market price of JYP Entertainment is over 30,000 KWD, a 7-fold increase. They have officially beat SM Entertainment to become the highest market price entertainment agency in Korea. So what happened in the past 3 years?
"I want nobody, nobody, but you!" We all know this catchy tune followed by a clap clap, the successful 'banger' "Nobody" by Wonder Girls gave JYP a glimpse of hope for the 'American Dream', bringing Wonder Girls to the USA. But we also know that this move drove JYP into a downturn, because Wonder Girls didn't pan out in USA, and when they returned to Korea, they couldn't beat Girls' Generation anymore. This issue put a glitch in development for JYP Entertainment to hit a downturn, with people speculating whether or not they have good planning for Miss A, 2PM, etc.
Things took a turn for the better in 2015, according to a talk given by JYP at "JYP2.0". He revealed that he did studies within the company, which had set up a special task force to deal with only one particular group, and said group will have their own marketing, promotion, managers––acting as somewhat of a sub-label under JYP Entertainment. Decision-making was swift and more accurate, and better planning was implemented. The group they used to test this was TWICE.
Since TWICE was formed, we've seen a demonstration of very effective planning from the team, from 'variety shows', to 'different versions of MVs', to 'better interaction with fans', to Japan tours, etc. People have discovered that the marketing and distribution for TWICE was clearly unique, and different from all the other groups of JYP. Consequently, this 'special treatment' gave TWICE an A+ report card, the national girl group that is not only the Top 1 among all K-pop girl groups, but also managed to successfully occupy the Japanese market, which brought a lot of profit to JYP.
Financial analysts have predicted that according to the reaction of TWICE's concert in June, the group will be able to achieve over 1.5M copy sales in Japan in 2020, bringing over 100M profit to JYP. It is not in question whether TWICE is contributing to JYP, the question is, how far can it go? Can we expect another sevenfold increase in the future?