Over 20 Wedding Halls Bankrupted or Closed Last Year
One in Four Newlyweds Met Through Apps
In Japan, dating apps known as 'matching applications (apps)' are gaining popularity, leading to a series of bankruptcies among marriage information companies (hereafter referred to as matchmaking companies). As the use of matching apps becomes more active and 'app marriages'?couples meeting and marrying through apps?increase, matchmaking companies have been pushed out of price competition.
According to Teikoku Databank, a corporate information provider, the number of matchmaking company bankruptcies last year reached a record high of 11 cases. The number of suspensions and closures also hit an all-time high of 11 cases, meaning that more than 20 matchmaking companies were effectively forced out of the market last year alone.
Teikoku Databank stated, "With various lifestyles such as low birthrate, aging population, and late marriages becoming established, the number of customers seeking matchmaking companies has decreased. On top of this, the establishment of matching apps for finding partners online has become a significant threat."
In fact, a survey conducted by major life insurance company Meiji Yasuda Life in October last year asked couples who married within a year about how they met. The result showed that 25% answered "met through a matching app," tying for first place with "colleagues or seniors/juniors at work." Only 1% answered that they met through arranged meetings.
Above all, Teikoku Databank analyzed that the bankruptcies of matchmaking companies were caused by price competition with matching apps. Unlike matching apps that have no membership fees or only charge partial fees, matchmaking companies charge entrance fees and registration fees, raising the barrier to entry.
In the case of Japanese matchmaking companies, entrance fees range from 100,000 to 200,000 yen (approximately 900,000 to 1,780,000 KRW), and monthly fees vary by company but range from 5,000 yen (about 45,000 KRW) to as much as 20,000 yen (about 178,000 KRW). The marriage fee paid when a partner is decided is about 200,000 to 300,000 yen (1,780,000 to 2,680,000 KRW). Additional costs include issuing a certificate of single status and photography fees for arranged meetings. In response, matchmaking companies actively planned offline events such as members-only parties as a survival strategy, but high advertising costs appeared to result in significant losses.
However, as the matching app boom continues in Japan, it is expected to become even more difficult for matchmaking companies to find new opportunities. Since September last year, three matching app companies, including 'Pairs,' have been competing to start TV advertisements. Moreover, local governments have also begun encouraging the use of matching apps. At the end of last year, Tokyo Metropolitan Government released its own AI matching app, 'Tokyo Futari Story,' and plans to launch full service starting this April.
Teikoku Databank added, "However, as the number of matching app users increases, problems caused by members without verified identities are also rising. Understanding the needs of users leaked from matching apps and how to provide opportunities for meetings will determine the future of the matchmaking company business."
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