Japan's 'fan economy' is booming

The 'oshikatsu' phenomenon may involve cartoon characters and pop idols but it's worth a whopping 3.5 trillion yen.

- Gearoid Reidy

Inflation is the No. 1 public concern in Japan. But one section of the economy is proving to be invulnerable to rising prices: pop idols, YouTubers and cartoon characters.

The term “oshikatsu” has been on the lips of everyone from executives to the Bank of Japan (BOJ) in recent months. Lacking a good direct translation, the word means supporting your favourite idol, character, or artist.

You can think of it as being like a dedicated Swiftie buying Taylor Swift’s merchandise and travelling long distances to concerts — except that passion can be applied to almost anyone, real or fictional.

Sanrio chief executive Tomokuni Tsuji recently told the Nikkei that while consumers once used only disposable income on oshikatsu and entertainment, it’s now become a separate spending category — one unaffected by rising prices. One survey found that a majority of respondents said inflation or the weak yen had no impact whatsoever on their spending in the category, unlike others.

A market where rising prices don’t affect demand? That’s a capitalist’s dream. It’s one that industry research estimates at 3.5 trillion yen (S$29 billion).

About 10 per cent of the Japanese population engages in oshikatsu - but importantly, more than 50 per cent are those crucial arbiters of cool: teenage girls. That has even the central bank on notice: Since 2024, it has highlighted the activity in its quarterly Sakura Report on regional economies, with one branch noting that “even as prices are being raised, merchandise sales are performing well, supported by strong oshikatsu demand”.