An analysis on the Hallyu Wave and the emergence of SNSD

Written by: Rivale / e.hqven I have always wondered how the Korean wave started and how the economy is affected. Thus, I have started a little research on it. Well, it seems that Korean pop idols are in fact helping Koreas economy by serving as a form of export to other countries. To be more specific, and to satisfy my curiosity, I have an urge to do a mini analysis on leading Korean idol groups like Girls Generation. Through this mini analysis, it will serve as a case study for me. Thinking about how the behavioural concepts of superstar theory affects the emergence of a group like this and how a group like Girls Generation behave. Since Girls Generation have somehow caught my attention, i would like to further look into a successful and strong bonding group like this. To me, i think it is unusual to find a group that is so synchronized and has strong cohesiveness, especially in an entertainment industry where it is a winnertakes-all market.

This analysis is based my own opinions and research. It's not to be taken too seriously, especially the part on SNSD as it's more of my opinions. Korean Hallyu Wave

The recent surge of popularity of South Korean popular culture in other countries, especially in Asian countries can be known as the Korean Wave. It is a phenomenon that is manufactured by the South Korean state itself, especially by the culture industry. The Korean culture industries like the film-, TV drama- and other media industries noticed the positive effect of Korean cultural export, not only on the economy, but also on the nations Image ( Tyas Huybrechts).

In recent years, Korean pop idols have become the key elements in attracting international attention to other commercial sectors in Korea. It has brought tremendous influence on the Korean tourism sector. Korean pop music (Kpop) has been steadily gaining influence in foreign markets with its uniquely-Korean beats and sounds. It consists of a perfect blend of various genres like electronic, hip hop, pop,

R&B, as well as rock. Its catchy tunes and fun choreographies have taken the world by storm, and YouTube houses several videos of flash mobs dancing to their favorite kpop songs in cities worldwide. Some of the major success of Korean pop export includes the exporting of Koreas group Tohoshinki (TVXQ). In 2008 and 2009, TVXQ made it to the Guinness World Records for having the world's largest official fan club, Cassiopeia. The band's official fan club, have more than 800,000 official members just in South Korea, more than 200,000 official members in Japan (BigEast) and more than 200,000 international fans (iCassies). Besides, the group was also listed as the most

photographed celebrities in the world. From the day of their debut to March 19, 2009, the five members are estimated to have been photographed about 500 million times in magazines, albums jackets, and commercials, etc. The total figure includes individual photos as well as group pictures. (KBS World,2009) Another large front in the Korean wave is the 13-member boy group Super Junior as well as it's sub-group, Super Junior-M. The 9-member girl group Girls' Generation or SNSD is also an extremely important aspect of the Korean Wave, with many of the members acting, modelling, or appearing for advertisements (Korean Wave Wiki). Exports of killer contents, such as games, TV dramas and music is expected to reach US$3.8 billion this year, a 14% increase over last year. The profitability of Korean wave contents has improved greatly with royalties increasing by 100%, thanks to the success of girl groups in the Japanese market, including Girls Generation and Kara (Heo, 2011).

Literature Review

Over the years, economists have come out with various research and explanation of superstar economics. The superstar effect is investigated in a wide variety of economic activities such as in sports, entertainment industry, cultural economics (Frey, 2000) and in winner-take-all-markets, where a small diversity in performance translates into large reward differences (Frank & Cook, 1995; Torgler, Anti & Dulleck, 2007)

The entertainment industry is seen to be in a winner-takes-all market. Frank and Cook (1995) explained that in winner-takes-all markets, rewards are strongly concentrated for a few individuals in markets analysis where a popular contribution is preferred and beneficial. The best compete among the best and people only want to see the best. Thus, a difference in ranking would determine the margin of victory. The main emphasis is on a stars ability to create buzz and capture consumer imagination as it is the primary source of star power. According to Rosens (1981) theory, it mentioned that talent is superior. However, Adlers (1985) superstar theory states that besides talent, past consumption and popularity is important. It states that the appreciation of a stars performance increases with the consumption capital of the consumer and that a stars popularity facilitates the accumulation of additional consumption capital. This is supported by Stigler and Beckers (1977) theory which mentioned that past consumption activities leads to beneficial addiction by accumulating more capital. Gossip consumption as mentioned by Gamson (1994) involves sharing information about celebrities which results in a higher interaction benefit of increasing a celebritys popularity. This creates a self-energizing virtuous cycle: a celebrity with a large and popular fan community becomes more and more valuable to each fan as he attracts ever more fans. Leibensteins (1950) banwagon effect is also another reason for the emergence of stars. It involves the observation that people often follow the crowd, thus determining the value of a celebrity for others based on its popularity. It affects both the manufacturing and hiring of stars as popularity can fuel further popularity in a virtuous cycle due to the fact that people increase their valuations of a commodity when they observe others consuming the same commodity.

Searching cost economies imply that consumers are better off patronizing the most popular star as long as others are not perceived as clearly superior (Nesch 2007). Since media companies are in the business of producing audiences, they are concerned with the number of viewers (Owen and Wildman 1992). By typically

operating under increasing returns to scale, profits increase with the number of viewers per program thus making consumers and audiences the main currency for

firms (Franch and Nesch 2007; Doyle 2002). Therefore it is important to study the relationship between consumer behavior and celebrity appearances. Media and emergence of celebrities

Anyone can become a celebrity, if only he or she gets into the news. Before the graphic revolution it was generally necessary to have demonstrated great deed or action in order to become well-known. With the development of mass-media the production and dissemination of fame began to be manufactured by the media. The advancement of technology have further enhanced the capacity to deliver vivid images of individuals in real-time around the globe. Satellite and digital television, computer technology and the Internet have considerably extended the capacity to make, transmit and disseminate images of celebrities (Smart, 2005).

Therefore, Hallyu has turned into a real-time phenomenon. With the expansion of social medias like YouTube, a new Hallyu has been triggered.

People anywhere can access content uploaded on YouTube channels and the caption service by YouTube has lowered the language barrier for Hallyu. This has resulted in the expansion to Europe, the Middle East and Latin America from the previous hotbeds of China and Southeast Asia. In the past, they got popular in Korea first and then spread to other countries but it isnt the case now. It is now consumed simultaneously around the world, points out Jung (Yoon Ja-young, 2011).

With global digital platforms such as YouTube has allowed widespread acclaim among users all over the world for great content that is mass produced in small and competitive local markets. The current Hallyu is said to be a digital Hallyu Korean Wave. As compared to the existing Analog Hallyu Wave, this is deemed to have more potential and its boundless due to the fast progress globally.

According to an analysis of the official YouTube channels of SM Entertainment, YG Entertainment and JYP Entertainment, which are the biggest three in the industry, the total number of views generated by Korean music-related videos was 793,574,005 in 229 nations in 2010 alone. Some of views were from countries far from Korea such as Malta, Cyprus and Aruba, showing the unlimited potential of Hallyu coupled with the digital service. (Yoon Ja-young, 2011)

Boorstin (1961) mentioned that We can fabricate fame, we can at will make a man or woman well known; but we cannot make him great. We can make a celebrity, but we can never make a hero. The hero created himself; the celebrity is created by the media (Boorstin, 1961, p. 48,61). Therefore, the power of the media lies in the decision for whom it triggers. Celebrities, however, have no qualities that set themselves apart. They are superficial, trivial, bereft of distinction and, therefore, in a constant battle of attracting or maintaining the medias attention. Celebrity status is fleeting and needs to be continually regenerated in order to remain in the public eye. They are destined to disappear and to be quickly replaced (Smart, 2005). A Celebrity is mainly forged through media attention, through the cultivation and projection of image which makes publicity their main form of oxygen (Smart, 2005, p. 14).

Appearances in talk shows or coverage in tabloids, magazines are, therefore, essential for keeping celebrity status. Sometimes even liaisons between Hollywood film partners or personal sex tapes on the Internet are arranged to catch and maintain the medias attention.

Emergence of Korean idol groups

Basically, the media plays a big part on the emergence of stars. However, talent does play a part too, especially if they want to be a lasting idol group. There are two types of emergence of superstars. First is the combination of an exceptionally high talent and large economies of scale of an idol and second is a celebrity who manages to catch high attention without outstanding talent. This phenomenon can be explained by Leibensteins bandwagon effect and Gamsons Gossip consumption (Shapiro & Varian, 1999). Korean Entertainment companies are indeed wise in their strategies as their strategies are seen to be different as compared to countries like Japan. Idols are trained for years before debuting, making them a somehow perfectly trained idol before showing audiences. The best is shown to audiences which makes

them somehow the best out of the best as compared to new idols from other countries. Trainees usually train hard for perfection in dances and their images before being put onto stages and programs. This results in a higher attention capturing rate. However, based on my observations, i have noticed that more idol groups who have just debuted are usually placed in programs such as Music Bank and various variety programs. I strongly believe that variety programs do indeed help create a better image of a celebrity and it helps audiences get engaged with idols. With variety programs, audiences would be able to relate to the character of an idol which makes it even more amusing. Audiences will start to appreciate the talents of idols through such variety programs and enjoy watching idols just being themselves. Girls Generation (SNSD)

I will use Girls Generation as an example as I find this idol group slightly unusual and interesting. Girls Generation is a nine member girl group formed by SM Entertainment in 2007. The nine members are Taeyeon (Leader), Tiffany, Sunny, Jessica, Hyoyeon, Yuri, Sooyoung, Yoona and Seohyun. They have somehow dominated the whole of Asia and are expanding globally. In 2011, they have won the Artist of the Year award, a Bonsang prize, a Popularity award and a Hallyu award. Thus, becoming one of the four artists in Korean music history to win two consecutive Artist of the Year awards at the Seoul Music Awards. They are also the only girl group in history to receive Artist of the Year awards for Seoul Music Awards, Melon Music Awards and Golden Disk Awards for two consecutive years. They also became the first Korean girl group to place No. 1 on the Oricon chart and winning several gold disc statuses for selling over 500,000 copies for their albums. When Girls Generation debuted, they participated in various variety programs such as M.Net's Girls Go To School, MTV Girls' Generation, SBS's Inkigayo and then later on MBC's Show! Music Core and KBS's Music Bank. In 2008 they were in M.Nets Factoy Girl as interns for Elle. And in 2009 they participated in Horror Movie Factory, Himnae-ra-him!/Cheer Up! and Hello Baby. Other variety programs includes, Right Now Its Girls Generation, Intimate Note, SBSs Strong heart, SBSs Kim Jung Euns Chocolate, SBSs Running Man, SBSs Champagne, KBSs Invincible Youth, SBSs

Star King, MBCs Come to Play, MBCs We Got Married and many more. Cameo appearances were also made in recent years in order to boost viewing ratings. SNSD has also participated in many endorsements which makes them even more familiar to audiences. Through the media, it plays as a part of networking, exposing SNSDs talent, faces and characters to us. We as audiences are frequently exposed to them which results in familiarity and more appealing power. Our past consumption activities in this case, which is the viewing of SNSD in programs and hearing their music have resulted in beneficial addiction by accumulating more capital (Stigler and Becker, 1977). This means that audiences will start to take note of them and start to follow their variety programs due to the additional satisfaction obtained by just watching them. Gossip consumption may happen as audiences will tend to share information with one another which results in the increasing popularity of SNSD (Gamson, 1994). This can happen through the media such as News channels, internet, articles and many more. The banwagon effect also attracts a larger fan base or attention as with their popularity level, people may start to follow the crowd. People will increase their valuations of a commodity when they observe others consuming the same commodity (Leibenstein, 1950). The snowball effect of consumers preferring popular artistes and advanced technology has helped in making SNSD emerge even faster and easier.

Their performances and talents such as singing, dancing, comedic talents also play an important part for the lifecycle of their stardom. By performing well and proving their talents to audiences, they have indeed caused audiences to appreciate them even more and with their popularity over the years, it further boosts an audiences consumption capital. The one uniqueness i have observed in SNSD as compared to other groups is that they show their gratefulness to fans by always bowing as a team after ever performance. This is a trait that leads to even more fan generation and fans to stay even more loyal to them. Luck perhaps also plays a small part in their success of maintaining popularity. Due to the offering of media companies they have an initial advantage of participating in certain popular programs as compared to other idol groups who do not have the chance to.

With their emerging popularity and success over the years it has indeed resulted in the matthew effect of success breeding further success as their popularity is still going strong and expanding. Their fan bases have expanded largely globally, thus making SNSD more valuable to each fan as they attract ever more fans (Gamson, 1994). Their current popularity globally can be supported by news reports on them in countries like France, Japan, Korea, Thailand especially for the recent SM Town Paris Concert 2011, the 1st Japan Arena Tour: Girls' Generation Arena Tour 2011 and Girls Generation Tour 2011. A recent History Channel program South Korea: A Nation to Watch has also featured one of its member, Tiffany, who mentioned about Kpop. This has resulted in audiences to be willing to pay a premium for the extra utility gained from seeing them performing. An example would be the recent Seoul Tour concert that had international fans attending. SNSD as a team

By noticing SNSD in the media, I have observed that the nine members have an unusual bond. A bond that is strong which keeps the team cohesiveness high and increases their overall performance as a whole. This is a trait which most people admire, turning them into fans. Based on a recent program MBCs Boom The Kpop, a survey was done on Japanese fans and the main trait that fans admire was their synchronized dance moves which is said to be unique as compared to local groups. Other traits include their singing talent, charisma, character, looks and style. However, as an observer i may be wrong as we may not know the truth behind a company or a group. As a team, it is important to know each individuals strengths and weaknesses. Most importantly would be a teams beliefs and communication as it affects their overall performance and image to audiences. After all, people cooperate if others do which makes it important for every member to put in sufficient effort. High performing teams are more vulnerable to cohesion and positional concerns due to resentment and strong inequality in income. Stouffer et als (1949) sociological theory of relative deprivation states that lower perception of ones own (group) status or ones own welfare in relation to another person (group) can be the source of hostility towards the other individuals or groups. Frustration may also arise when his/her situation such as individual earnings falls relative to the reference group. Pleban and Tesser

(1981) stresses that, The closer another is, the more likely one is to engage in comparison processes (p. 279). Comparison to teammates has the strongest impact on performance. This is followed by the reference groups that incorporate position and age and position and region. Based on SNSDs popularity, it is seen that they are most likely a high performing group which causes us to think about their teams positional concerns. It is highly likely that there is envy between members due to individual comparisons and comparisons done by fans and audiences. Unhappiness may arise due to inequality in income as each member is scouted for various endorsements and programmes determining their popularity and income. Based on an episode of Mnets Idol Chart Show, SNSDs Yoona is named to be the top 12 of the highest income earners amongst Idols in Korea. This means that Yoona earns the highest among other members in her group. This is expected as she has the most appearances in dramas and endorsements as compared to other members.

So could this bring about unhappiness and bring about a lower team performance and lead to members leaving the team due to less future rewards? Theres a high possibility of unhappiness among members but definitely will not cause any members to leave the team as the stakes are high. Being known almost globally, leaving the team would mean that there is a high opportunity cost of losing great contracts and a chance of higher popularity in the future. Based on my observation, it is highly likely that the group is off the stage of strong envy and unhappiness. This stage could have happened during the first few years of their debut but the stronger bonds they have forged over the years is likely to have reduced such positional concerns. This is because closeness mediates the relative income effect quite substantially. Concerns of fame or money are no longer important when they have forged bonds like a family. Thus, leading to a higher success possibility as members will most likely associate superior performance with their own performance and have less concerns about their own fame or money. As a team, knowing the large income differences is likely to have a positive effect. They may increase their performance as there is an incentive for every member to achieve similar status.

Having a team motivation slogan, practicing pre communication before any activity and also feedback after each activity is also something important to be observed. This leads to high beliefs and communication in a team. It increases contribution and ensure commitment of members in competitions and performances (Bornstein and Rapoport, 1988). Members will also learn about their strengths and weaknesses, helping one another to improve as a team. Therefore, leading to high cohesiveness and strong synchronized performances in their group.

Higher performance level can also be due to higher expectations, stakes and crowd pressure. Performances overseas tend to have higher stakes as it will determine if they will succeed in that country and bring about more fans and income. Based on the Yerkes Dodson curve, an optimal level of stress may mean higher performance but too much of it decreasing performance. Perhaps with the amount of stress they are having right now, it isnt a bad thing. With a right amount of stress, they will strive to do better.

Conclusion The main motive of superstars is to gain fame, public recognition, approval and intrinsic rewards. In this case, SNSD has indeed succeeded in obtaining it. Their hard work over the years has paid off. With a nine member group it is definitely challenging to obtain such success in such few years. Time, luck, technology does play a part but most importantly is the effort and beliefs of each individual and as a group.

This applies not only to just SNSD but also to other Korean idol groups. I have to hand it down to Korean entertainment companies because they do know their strategies. Combining their strategies with advanced technologies and asymmetry of information success comes easy. The emergence of many idol groups have indeed bring about second movers, knowing what each group should do after looking at the experiences of senior groups. Perhaps, the long years of training was also to help each individual to mature in a group, to have a perfect teamwork before showing it to the world.

Randomness

I think the top part is quite serious right? Time for some lameness and opinions..

Q: Would SNSD beat the world record? A: Highly likely? Since their fans are growing at almost every continent. The wave spreads fast and dies fast. Its sad to say that for every idol group there is a lifecycle. The common lifecycle of idols is about 3 to 5 years depending on their activities, popularity and new emergence of groups who can overpower them. Q: Are you a fan of SNSD? A: Actually im not really a crazy fan or something. I just find their group dynamics kinda unusual, which makes me interested in knowing them even more. I seriously know nuts about them until recently. Heard about them only after the drama Youre beautiful due to the parody. I wasnt even interested in their songs because i find them too sweet or girly. But, i randomly watched their variety programs and then Stigler and Beckers (1977) theory applied to me.. which was beneficial addiction that led to me enjoying their variety programs. And slowly, get to know their characters.. And then here it is.. An analysis -_-.

Q: Do you like economics that much to do an analysis? A: LOL. Well, i like it to some extend because economists believe that there is a reason behind everything. And learning about behavioural economics is so funny and interesting. It applies to everything. Which makes me wanna try to apply to things im interested in knowing more about, to see how real life application works. Actually there are still so many aspects to be explored. I think this is just a short analysis based on what ive learnt all just for the fun of it. Q: Do idol groups play a part in Koreas economy? A: I have to say yes. And now its a big part of boosting Koreas economy as a form of export. Its a form of business. A smart one. Q: Many say idols like SNSD completes their life what about you? A: I have to say SNSD is a form of recreational entertainment, it does add to my utility level. Idols treasure their fans more than anything else. Fans are their oxygen, and i have to say it got me thinking when doing this analysis. What completes my

life? What is my oxygen? Its my dreams, family and friends that make my life complete. Every sweat someone makes shows us how valuable their effort is. Appreciating every single thing that everyone does for you is the most important thing in life. What about you?

Q: Anymore analysis? A: Not at the moment. I have assignments coming up and research papers to do! But definitely not a topic that is this interesting. I might be doing lame photoshop and videos if im free. Just for the fun of it.

References: Adler, M. (1985). Stardom and talent. American Economic Review, 75, 208 212 Boorstin, D. J. (1961). The image or what happened to the American dream. New York: Harper and Row. Bornstein, G., & Rapoport, A. (1987). Intergroup competition for the provision of binary public goods. Psychological Review, 94, 291-299. Doyle, G. (2002). Publications. Understanding media economics. London: Sage

Frank, R. H. (2007). The economic naturalist: In search of explanations for everyday enigmas. New York: Basic Books. Frank, R. H., & Cook, P. J. (1995). The winner-take-all society. New York: The Free Press. Gamson, J. (1994). Claims of fame. celebrity in contemporary America. Berkeley/Los Angeles/London: University of California Press. Heo, Jeong-yun (February 25, 2011). "Contents Industry Shows Strong Growth with Exports of US$3.8 Billion". etnews.co.kr. Electronic Times Internet. Retrieved: March 16, 2011. Leibenstein, H. (1950). Bandwagon, snob, and veblen effect in the theory of consumers demand. The Quarterly Journal of Economics, 64, 183-207.

Owen, B. M. & Wildman, S. S. (1992). Video Economics. Cambridge: Harvard University Press. Pleban, R.,& Tesser, A. (1981). The effects of relevance and quality and another s performance on personal closeness. Social Psychology Quarterly,44, 278 285. Rosen, S. (1981). The Economics of Superstars. American Economic Review. 71(5), 845858. Shapiro, C. and Varian, H. R. (1999). Informational rules. A strategic guide to the network economy. Boston/Massachusetts: Harvard Business School Press. Smart, B. (2005). The sport star. Modern sport and the cultural economy of sporting celebrity. London: Sage. Stigler, G. & Becker, G. (1977). De gustibus non est disputandum. The American Economic Review, 67, 76-90. Stouffer, Samuel A., Edward A. Suchman, Leland C. DeVinney, Shirley A. Star, and Robin M. Williams, Jr. Studies in Social Psychology in World War II: The American Soldier. Vol. 1, Adjustment During Army Life. Princeton: Princeton University Press, 1949. 125 Nesch, S. (2007). The Economics of Superstars and Celebrities. Zrich: Gabler Edition Wissenschaft. Yoon Ja-young. (February 8, 2011). YouTube taking 'hallyu' on international ride. The Korea Times.koreatimes.co.kr/news http://www.koreatimes.co.kr/www/news/biz/2011/03/123_81039.html Torgler, B., Antic, N., & Dulleck, U. (2007). Mirror, mirror on the wall, who is the happiest of them all?. Center for Research in Economics, Management and the Arts (CREMA), 61(2), 309-319. "TVXQ in Guinness World Record". KBS World. March 24, 2009. Wikipedia

Something interesting to share ( From Wikipedia): How far will you go just to see your idols? McCutcheon et al. suggested that celebrity worship comprised one dimension in which lower scores on the scale involved individualistic behavior such as watching,

listening to, reading and learning about celebrities whilst the higher levels of worship are characterized by empathy, over-identification, and obsession with the celebrity. Entertainment-social This dimension comprises attitudes that fans are attracted to a favorite celebrity because of their perceived ability to entertain and become a social focus such as I love to talk with others who admire my favorite celebrity and I like watching and hearing about my favorite celebrity when I am with a large group of people. Intense-personal Intense-personal aspect of celebrity worship reflects intensive and compulsive feelings about the celebrity, akin to the obsessional tendencies of fans often referred to in the literature; for example I share with my favorite celebrity a special bond that cannot be described in words and When something bad happens to my favorite celebrity I feel like it happened to me. Borderline-pathological This dimension is typified by uncontrollable behaviors and fantasies regarding scenarios involving their celebrities, such as I have frequent thoughts about my favorite celebrity, even when I dont want to and my favorite celebrity would immediately come to my rescue if I needed any type of help.

So which dimension are you at?