Anipen is a South Korean startup that develops XR platform and metaverse-based technologies. Since its founding in 2013, the company has built up solid technical capabilities and extensive experience in AI (Artificial Intelligence), XR (Extended Reality), digital twin, and avatar engine, among others. From 2021 to 2022, Anipen received an investment of approximately KRW 35 billion, and KRW 22 billion in 2020. Additionally, the company is preparing for an IPO with Daishin Securities as the lead underwriter.
Recently, it signed an NDA with Japan's TBS and has actively maintained its presence in Japan, continuing to receive love calls from Sanrio, the global IP giant famous for Hello Kitty, for several years. Jeon Jae-woong, Anipen's CEO, shared his experience in Japanese market, Let's discover the tips for entering the Japanese market!
(Photo provided by Anipen) CEO Jeon Jae-woong
Q. Could you please give us a brief introduction to Anipen's services?
CEO Jeon: Anipen's business is categorized as follows:
△XR Project
△ AR APP
△Mobile Game (based on animation IP)
△AR Zone (space installation-type AR kiosks for taking photos and videos with 3D characters) △AR Movie (video content created with Anipen's AR authoring technology)
△AR Live Service (real-time AR filming and live broadcasting solution)
△New Business. The services to be launched in 2024 include "Count One Two Three with Dinos AR" and "Count One Two Three with Dinos AI" kiosks (one of each, for a total of 2). Operations will start on March 23 with the opening of the KBO League. The users can experience AR (Augmented Reality) filters that make it seem as if you are taking photos with NC Dinos players, as well as AI (Artificial Intelligence) photos that create an NC Dinos uniform, a backdrop of stands and a baseball field with cherry blossoms.
The AR kiosk is a project introduced in 2017, with Anipen's values of "turning imagination into reality" and "communicating fun through technology," providing users with the opportunity to experience Anipen's technology. So far, more than 650,000 AR videos and photos have been created in places like the BTS pop-up store 'HOUSE OF BTS' and the Kakao Friends Gangnam flagship store 'KAKAO FRIENDS PHOTO BOOTH'.
(Photo provided by Anipen) cultural heritage XR platform 'Heriverse Coexistence'
The flagship projects revealed in 2023 include the cultural heritage XR platform 'Heriverse Coexistence', applying AI (Artificial Intelligence), XR (Extended Reality), XPS (eXtended Positioning System), and spatial computing technologies, 'Sanrio Characters AR Random Photocard', applying web AR and AI, '1thePic', an AI app that changes portraits into various styles, and also utilizing digital twin technology to implement a smart conference room (Gyeonggi Content Agency's Win-Win Open Innovation project) and Sanrio Puroland for the Sanrio Virtual Festival in Sanrio Puroland 2023 in 3D.
All apps developed by Anipen, including Mini Special Forces World, Pororo World AR, Robocar Poli World AR, and Catch! Tinyping AR, have surpassed 17 million global downloads. The company is focusing on developing a commerce and AI-based XR platform that can handle multiple IPs.
Q. What was the reason for your decision to expand globally?
CEO Jeon: The decision to expand globally was motivated by the success of the mobile game app "Pororo World AR" launched in 2018, which achieved 8 million global cumulative downloads, featuring over ten types of mini-games such as AR playsets, AR stickers, and a claw machine game. Observing higher download numbers and Monthly Active Users (MAU) in Southeast Asian countries like Indonesia and India, compared to Korea, prompted the consideration for global expansion. Furthermore, mobile game apps such as "Mini Special Forces World" (with 7.5 million global cumulative downloads) and "Robocar Poli World AR" (with 1.3 million global cumulative downloads) have recorded good performance not only in the Southeast Asian region but also in Russia and Uzbekistan.Going global was also viewed as an effective strategy, considering the high global recognition of the IPs with which we have good relationships and factors such as customer acquisition costs.
Q. What was the reason you found the Japanese market most attractive?
CEO Jeon: Firstly, Japan is the world's third-largest economy and has a culture of valuing consumption of both online and offline content. Looking at the mobile game and content market, Japan has a much higher rate of payments and average purchase price compared to other countries.Since Anipen's main business areas include metacommerce, games, and digital content itself, as well as O2O (Online to Offline) platforms that fuse digital content with offline elements, we found the high purchasing power of Japanese consumers attractive.Secondly, we find high brand loyalty to be an attractive point. It may not be easy to acquire customers in Japan at first, but once they become customers, they tend to show high loyalty. We thought that collaborating with IPs that are already well-recognized and consistently loved in Japan could mitigate the difficulty of acquiring customers in the early stages of the business and accelerate the momentum of our business endeavors.
Therefore, we established a Japanese branch in January 2015 and have maintained a close partnership with Sanrio, a global IP company known for Hello Kitty, among others. In addition, we plan to provide new experiences to consumers by supporting the digital transformation of IPs through collaborations with other famous IP holders in Japan.
Q. What are the advantages and disadvantages you have experienced while doing business in the Japanese market?
CEO Jeon: The advantage is users' high recognition of the value of content. They acknowledge the intangible value of IPs, characters, etc., and are willing to spend money on content they like. Additionally, the level of awareness about copyright and originality is quite high.The disadvantage is the market's exclusivity. In the case of Japanese companies, all processes for collaboration, such as contracts and post-contract practical cooperation, tend to take a long time. It requires patience and endurance to gain trust. Moreover, in inevitable competition with domestic companies in the same field, there's a barrier to overcome as local companies often prefer Japanese businesses over foreign ones. Like Korea, the changing consumer base, specifically the aging population structure, is also considered a long-term risk factor for the Japanese market.
Q. Could you explain about Annipen’s current business status in Japan?
CEO Jeon: The areas we are currently focusing on can be divided into two main categories: launching services in the Korean market using Japanese IPs and launching services in the Japanese market using Japanese IPs.[Services Launched in the Korean Market Utilizing Japanese IPs]
1) Sanrio Characters AR Random Photo card
The "Sanrio Characters AR Random Photo card" is a product that allows users to experience Sanrio's representative characters as 3D AR content. When the photo card is recognized by a smartphone camera, Sanrio characters like My Melody and Kuromi appear in AR.
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In April 2023, Korean Baskin Robbins, in collaboration with the global character company Sanrio, launched the "Sanrio Characters AR Random Photo card."
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20 types of common cards per season and 11 types of limited cards available only in each season, recording successful sales results up to Season 2
The web AR service applied to the photo card incorporates AI and AR technologies, and in particular, the accuracy of distinguishing between character-specific cards has been improved through data learning using Anipen's proprietary deep learning technology. Additionally, it implemented a mobile web-based AR character integration method using web AR technology, making it easy for many users to access AR character content.
2) AR Kiosk Utilizing Sanrio Characters
Since 2017, AR kiosks that implement Sanrio characters in AR for photo and video shooting have been continuously operated. In January 2019, a Hello Kitty AR kiosk was installed at Hello Kitty Island in Je-ju Island and has been operated to date. This kiosk offers an experience where users can dance with AR Hello Kitty, and the scene is saved as a video.
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Participated in the Sanrio Expo for three consecutive years from 2017 to 2019, operating AR kiosks, and have experience launching and operating a Sanrio AR kiosk in Saudi Arabia.
[Services Launched in the Japanese Market Utilizing Japanese IPs]
3) Meta Commerce XR App 'Cogimyun Shop'
digital twin of actual products in 3D
augmented reality (AR)
virtual reality (VR)
In June 2021, the meta commerce XR app 'Cogimyun Shop' was launched in the Japanese market. Products listed through Cogimyun Shop were sold online using XR commerce. Shopping was transformed into content that is alive with stories, allowing users to enjoy various pleasures and new experiences beyond mere purchasing.
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Cogimyun Shop' features 3D digital twins of actual products, augmented reality (AR) for examining digital products in real life, and virtual reality (VR) for enhancing and decorating shopping spaces with digital content.
4) Sanrio Puroland 3D Implementation
Sanrio Puroland theme park
Last year, during the *'Sanrio Virtual Festival in Sanrio Puroland 2023,' Sanrio Puroland theme park was implemented in 3D using digital twin technology.
*The Sanrio Virtual Festival, hosted by the global IP company Sanrio, known for Hello Kitty, was an entertainment event set in a virtual space, featuring VR parades, performances by famous creators, and fitting the theme of communication, it celebrated interactions between users and characters from both reality and the virtual world (January 13th to 22nd in 2023).
Anipen applied digital twinning technology to Sanrio Puroland, located in Tokyo, Japan, creating a 3D virtual space called 'Virtual FuroVillage,' where the main events of the virtual festival took place. Participants enjoyed an experience similar to visiting Puroland in person within the Virtual FuroVillage, engaging in various events.
5) Cinnamoroll's Mysterious Photospot Mobile App
In July 2020, the mobile app 'Cinnamoroll's Mysterious Photospot(シナモロールふしぎなフォトスポット)' linked to the HOTEL OKINAWA with SANRIO CHARACTERS was launched in the Japanese market. It's an app for guests staying in Cinnamoroll-themed rooms, allowing them to experience AR-implemented Cinnamoroll through the app.
Q. Congratulations on the recent NDA signing with TBS!
CEO Jeon: We met TBS at the d-camp’s MokTalk event and found that the technology we were developing aligned with TBS's goals, leading to the NDA and further discussions. This has allowed us to work on references that will aid our future business in Japan. I particularly appreciated the atmosphere of MokTalk that encouraged open discussions with startups preparing to enter the Japanese market, as well as with those that have already made their entry. It was wonderful to exchange a wealth of information and build networks over a casual meal after the event. I hope to attend MokTalk frequently in the future!
Q. Do you have any special tips for startups preparing to enter the Japanese market?
CEO Jeon: The background that enabled us to actively pitch and advance our business with TBS includes regular visits to Japan, about once or twice a month, to update our technology development status and discuss collaboration opportunities with Japanese partner companies. Collaborating with Japanese companies often felt like a battle against time. Even if short-term results were not immediate, calmly understanding the other company's needs and building a relationship, I believe, leads to better long-term outcomes. The most challenging aspect was the need for frequent face-to-face meetings to update and build trust, necessitating frequent travel between Korea and Japan. Additionally, understanding the intentions of Japanese counterparts or stakeholders was difficult due to cultural differences. Fortunately, Japanese companies have become more receptive to online meetings since the pandemic, making this a viable option.
Q. Lastly, what is Annipen currently focusing on, and what are its goals for the future?
CEO Jeon: Anipen hopes technology will not just stay as technology but will help in daily life and change the way we live. We've introduced various services with the ambition to make technology easily usable by anyone and with the hope that it makes our lives more enjoyable. We will continue to create diverse services with our solid technical capabilities and extensive experience in XR, AI, etc.