• As technology empowers local culture to go global, the export of Asian culture is experiencing an unprecedented expansion.
  

• By 2030, the global film and entertainment industry is expected to reach a scale of $170 billion, and the growth momentum will be largely driven by works in Chinese, Korean, Hindi, and Arabic.
  

• Although cultural changes have nurtured unlimited business opportunities, businesses and investors must also navigate the increasingly diverse cultural landscape.
  

        On the bustling streets of Hong Kong, you can always catch a glimpse of one of the hottest trendy toys of the year: Labubu dolls. These collectible dolls are created by Hong Kong illustrator Kasing Lung and produced by Chinese company Pop MartsalesIt has surpassed the threshold of millions. Since Lisa, a Thai member of the Korean girl group Blackpink, shared her Labubu collection on Instagram, the popularity of this doll has skyrocketed. Her fans around the world are willing to queue up all night to own a Labubu.

        The Labubu craze sweeping the globe is a microcosm of the growing momentum of Asian cultural exports. Taking Korean music as an example, its overseas sales have increased fourfold in the past decade, and it is expected thatthis yearIt will exceed $1.5 billion, equivalent to selling 50000 Hyundai Tucson SUVs. At the same time, as one of the world's largest film producing countries, India's works are also reaching audiences beyond traditional overseas immigrant groups; The film "Wrestling! Dad", starring Amir Khan, has nearly two-thirds of the global box office from the Chinese Mainland, which makes it a leap into ChinaThe highest grossing foreign filmone of.

Rebalance of trade flow?

        Technology is quietly changing the direction of cultural flow, bringing local creativity to distant markets and taking root in new soil. This cultural boom not only allows the world to hear more stories in different languages, but is also reshaping the pattern of global trade: it will be absolutely beneficial for trade, especially service trade, and provide additional growth momentum for emerging Asian economies, while helping themresistHedge measures for manufacturing trade fluctuations. Therefore, this is a thriving economic and business opportunity.

        By 2030, the global film and entertainment industryEstimated scaleIt will surge from $100 billion to $170 billion. And what supports this increment are stories written in Chinese, Korean, Hindi, and Arabic.

        This transformation is particularly evident in the rankings and program production of streaming platforms.On NetflixNon English TV series occupy 10 of the top 25 global ratings. Cross cultural hits like 'K-Pop: The Witcher' even rank among the highest viewed movies in platform history. At the same time, platforms are quietly building bridges between emerging markets, with half of the programs watched in the Middle East and North Africa region being non English content, and the number of local Arabic programs doubling.

        Music has also become more globalized and diverse. In 2017, only English and Spanish songs were able to surpass SpotifyThe threshold for annual royalty income of $100 millionBy 2024, music in eight languages will have surpassed this threshold. Currently, more than half of the artists on the platform who earned over $10000 in revenue last year are from non-native English speaking countries.

        Mixed formats are quietly emerging, and the boundaries of various forms are becoming increasingly blurred. Pop Mart personifies toys and incorporates animated short videos into China's emerging trend of "short dramas" - a two minute mini series specially designed for mobile screens. The trend of short dramas quickly pushed its revenue from $500 million to $7 billion within three years, and evenexceededThe box office of domestic movies in China.

        As the entertainment sector with the strongest profitability, video games have even higher profits, and cultural touchpoints are constantly expanding around China's influence. Based on the classic novel "Journey to the West", "Black Myth: Wukong" has generated over $1 billion in revenue overseas, becoming a prominent landmark for Chinese cultural products to "travel westward"; Chinese tech giant Tencent has also expanded its esports business globally and is currently inOver 90 countries and regionsOrganize events and expand a wider audience base.

        This cultural momentum is being transformed into tangible economic returns. Iseltwald in Switzerland used to be just a once quiet lakeside fishing village, in response to the large influx caused by the Korean drama "Love Landing"The influx of Asian touristsWe have to increase the number of double decker buses to cope with the crowd.

        With the changing and growing demand, the entertainment industry is seeking to discover original content with cross regional dissemination power, combined with global distribution and scale effects: a content landscape with more languages, more cultures, and more poles is emerging. Capital follows suit and continues to flow into Asian film, music, gaming, art, and short video media. A passionate, young, and globally spread fan base can ensure the success of mainstream popular content and is willing to pay for it. The participation of the Alpha generation (born in the early 2010s to mid-2020s) has significantly increased: they are not only the core audience of the future, but also the creators and consumers that cannot be ignored in the value chain at this moment.

An increasingly diverse cultural landscape

        Cultural change, while creating business opportunities, also requires businesses and investors to navigate through a more complex cultural landscape. This is not an easy task, as not every Asian cultural product is created for export. Take the "China-Chic" movement in China as an example. Its background is strong cultural identity and patriotism. Most consumer groups are immersed in the Chinese cultural background, preferring local brands that revive Chinese traditional elements in clothing and other design fields.

        This shift of creative focus towards Asia has added new dimensions to the reshaping of globalization. It will accelerate the interconnection of aesthetic taste, consumer behavior, and expenditure patterns within and outside Asia.

        For investors, this trend provides an observation window to gain insight into the behavioral preferences of the next generation of global consumers and which brands can win their loyalty. Brands that can adapt to these new trends will win the love of more and more young consumers both domestically and internationally.

        Author of this article:

        Liao Yijian, Co Chief Executive Officer of HSBC in Asia and the Middle East