Insert a Coin and Draw a Toy: The Capsule Machine's Comeback
From Japan's 'Gacha Machine' to a New Trend
Cheap Trinkets Gain Attention as 'Experience Consumption'
The 'capsule machine,' once only seen at stationery stores in front of schools, has recently gained attention among people in their 20s. Capsule machines, which occupy a spot in pop-up stores in bustling areas like Hongdae and Itaewon, contain goods (products) created in collaboration with famous characters or brands. How did the capsule machine craze, which swept Japan, become a trend in Korea as well?
Capsule toys are toys contained in palm-sized plastic balls, usually sold in a random draw format. In the past, 'capsule draws' involving coins worth around 500 won were popular in Korea as well. However, the capsule machines that have captivated Generation Z today are a much more premium version. Installed in pop-up stores planned by large corporations, the quality of the toys has improved. Many popular characters developed in cooperation with famous brands are included.
Capsule toys from the Pok?mon pop-up store in Jamsil, Seoul, held from the end of last year to January this year. Screenshot from the official Pok?mon pop-up store website.
Capsule machines were also popular at the 'Pok?mon Pop-up Store' held in Jamsil, Seoul, from late last year to early this year. Various types of accessories such as badges, plastic toys, and objects made in collaboration with the globally famous Pok?mon brand were sold in capsule machines. The price to turn the machine once ranged from 3,000 to 7,000 won. Although this is a considerable amount to spend on accessory-type toys, stories of spending tens of thousands of won are frequently observed. On secondhand trading platforms, posts appear where people offer to exchange the toys they have collected for others.
The capsule machine boom started in Japan. In fact, Japan has long been a powerhouse for capsule machines. Since importing capsule vending machines from the United States in the 1960s, machines have been actively installed in neighborhood marts and unmanned stores. The Japan Toy Association estimated the Japanese capsule machine market size in 2022 at a record high of 61 billion yen. The total number of installed machines is about 70,000, exceeding the number of convenience store outlets (about 57,000).
In Japan, capsule machines were once considered nostalgic items, but they entered a new golden age after successfully targeting female consumers in their 20s and 30s during the 2010s. Nowadays, Japanese capsule machines are called 'gachagacha (がちゃがちゃ).' In Korean, this can be translated roughly as 'clack-clack.' In Japan, 'gacha' has become a neologism encompassing all products with random elements. In busy areas like Osaka, there is even a large store called 'Forest of Gachagacha,' which gathers only capsule machines.
How did gacha attract the interest of young generations in both Japan and Korea?
Katsuhiro Ono, a Japanese marketing expert, published 'The Economics of Gachagacha' in August last year, which closely analyzed the Japanese 'gacha boom.' In this book, he diagnosed that the biggest difference between old capsule machines and today's gacha machines lies in price and quality. Unlike in the past, the toys drawn from today's gacha machines are high-quality accessories meticulously produced by toy companies with a long history, stimulating the collecting desires of adults.
If these accessories were sold as separate products, they would not have received the same level of response. However, the unique business model of planning companies partnering with toy manufacturers to put products into gacha machines and selling them at 3,000 to 7,000 won per turn has created an 'economy of scale.'
In particular, the author emphasizes that the act of turning the gacha and anticipating what will come out is itself an "experience consumption," and "the core of its popularity lies in the fact that production quantities are basically limited, so once sold out, it cannot be purchased again."
Professor Eunhee Lee of Inha University's Department of Consumer Studies explained, "Experience consumption is the strength of offline marketing compared to online," adding, "The process of turning the machine and hoping to get the goods you want has itself become a consumer product." However, she warned, "Because the draw products include some gambling elements due to randomness, it can also provide negative experiences. If consumers pay too much money to the machine or experience drawing mostly unpopular products, the displeasure compared to the expenditure can increase."
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