Asia’s cultural export boom will accelerate

Amidst Hong Kong’s bustling streets, you’ll invariably spot one of the recent viral trends – Labubu dolls. Sales of these collectible figures are expected to surpass 10 million every day¹.

The geographic spread of the Labubu phenomenon is emblematic of a broader trend – Asian cultural exports are undergoing a major expansion.

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By David Liao, Co-CEO for Asia and Middle East, HSBC.

Overseas sales of Korean music and K-pop, for example, have quadrupled over the past decade and are expected to have surpassed US$1.5 billion in 2025². India, home to one of the world’s largest film industries, is seeing titles reach audiences beyond the traditional diaspora.

As technology enables local culture to go global, finding new niches in far-flung locales, a rebalancing of flows will ensue.

This will be net positive for trade, especially in services — and provide emerging economies in Asia an additional growth driver and hedge against volatile trade in manufactured goods³.

It’s therefore a burgeoning economic and business opportunity.

Commercial opportunities

This cultural power translates into economic returns outside of Asia.

The shift in the creative centre of gravity towards Asia adds another dimension to how globalisation is being reshaped.

It will accelerate interconnectivity of taste, consumption and spending within and without Asia. For investors, the trend offers a lens into the behaviour and preferences of the next generation of global consumers, and the brands that will earn their loyalty.

While cultural change creates commercial opportunities, companies and investors must navigate a richer mosaic of cultural touchpoints.

Those brands that tune in to these new frequencies will earn the affection of a growing generation of fans, at home and abroad.

A fuller version of this article was first published by the World Economic Forum (opens in new window) (opens in new window) to coincide with its annual meeting in Davos.

References

1. According to Pop Mart CEO Wang Ning
2. According to analysts figures reported by The Chosun Daily (opens in new window)
3. According to S&P Global research (opens in new window)