ON our Seoul trip, my daughter Blessie, a BTS (the South Korean boy band) fan, asked us to include a BTS tour in the itinerary. We did a Dae Jang Geum Park Tour and a BTS Tour. The park is an MBC studio set used to film Korean dramas depicting the Kingdom of Joseon (also the set of the music video Daechwita of BTS Suga). The tour included places where BTS spent time in their formative years, their entertainment company, old houses and dormitories.
For a non-BTS follower, it was a learning experience. We were joined by Swiss and Japanese tourists, and how they engaged in conversation with my daughter for their appreciation of the BTS music crossed cultural boundaries.
We visited sites where the band members lived together while training for their launch. BTS started from humble beginnings. When they debuted in 2013, the group went through a difficult stage. Unlike other idol groups, BTS was formed by a small management company, Big Hit Entertainment (now Hybe), led by Si-hyuk Bang and gained little media attention. BTS was like a startup with little resources. The first two albums flopped while the third was a moderate success.
A trip to Los Angeles in 2014 to attend the Korean cultural festival KCON was when their fortunes started to change. After KCON, a new album “Dark to Wild” sold over 100,000 that year and a global concert tour drew 80,000 people in 13 countries. The band’s fan base — known as the Army (Adorable Representative M.C. for Youth) — was launched in 2014 with 3,000 South Korean fans and swelled eventually to 100 million members worldwide by 2020.
Harvard Business School associate professor Doug Chung and research associate Kay Koo wrote a case study, “BTS and Army,” about how the band marshaled its Army to champion the band on social media and send it to mega-stardom. The large, loyal following was a big part of what investors were buying when BTS management company raised $50 billion in its 2020 initial public offering.
BTS has built a deeply personal and emotional connection with their fans. Their songs often explore personal struggles, mental health, self-love and social issues, which resonate with listeners on a global scale. They communicate directly with fans, bypassing traditional media and creating a more authentic connection.
This strategy gave them global reach without relying on Western gatekeepers, allowing them to build a dedicated fan base across the world. BTS’ openness about their own struggles and experiences, including issues like mental health, adds to their authenticity. The transparency has made fans feel emotionally connected to the band, deepening their loyalty.
Like typical fan clubs, members bought merchandise and snapped up concert tickets, but the Army was also extremely active online, producing user-generated videos, cover dances and remixes. For example, the Army delivered flowers to radio stations for airing BTS music. The Army loved BTS’ positive and sincere messages about the world.
The HBS case study enumerated the five-step strategy followed by Chief Executive Officer Bang of Hybe in developing the BTS fan base. It’s something marketers can learn from.
First, express a social conscience. BTS produced songs that commented on social issues and had a consistent message of self-love. The first three albums delved into the trials and tribulations of teenagers. Later songs touched on mental well-being, economic equality and the need for social justice. In addition, the band partnered with Unicef, donated $1 million to Black Lives Matter and aided Covid-19 relief efforts.
Second, build content. Hybe created the BTS ecosystem in the style of Marvel Comics, complete with a plot that featured band member Jin as a time-traveling hero trying to save his bandmates, each with their own alter-egos. The story allowed BTS to create interlinking music and videos as well as a weekly webcomic, a novel and websites.
Third, stay united as a team. While many Korean bands splinter into solo acts and brand into subunits, BTS stuck together. The band members were known for getting along, and they continued to release their music together until a recent 2022 hiatus.
Fourth, avoid micromanaging. Some agencies of Korean idol bands prohibited stars from using their phones, and some contracts contained no-dating clauses. Bang decided to take a more hands-off approach, with the belief that pop stars are human and could channel their personalities into their work and use it to connect with fans. BTS’ contract was less restrictive than those of other K-pop acts, and members were allowed to interact with fans on social media and discuss the pressures of stardom.
Finally, communicate directly with fans. Hybe created a platform called Weverse, where fans could buy merchandise, watch performances and connect with other fans. Most importantly, the platform also allowed BTS to communicate directly with fans. The band members often visited Weverse to reply to Army members’ posts and sometimes posted their own messages.
BTS became a global phenomenon by transcending traditional boundaries of the music industry, establishing themselves as a cultural, economic and social powerhouse. From a business perspective, BTS strength lay in its ability to implement innovative marketing strategies, including use of social media, and a focus on fan engagement and experiential marketing.
Benel de la Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines. He is an active Finex member and an advocate of risk-based lending for SMEs. Today, he is an independent director in progressive banks and in some NGOs. The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as Finex.
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