Kakao Japan ranked no. 1 in non-game app sales in Japan, 12th in global sales

– Continued growth in the Japanese market, which is in the early stage of mobile content consumption expected

– 2Q transactions increased by 2.5 times compared to the previous year, and surplus in operating profit for three consecutive quarters from 4Q19

Kakao Japan (CEO Kim Jae-yong) reported that according to the report presented by the global app research company App Annie, Piccoma was ranked no. 1 in total sales among all non-game apps in Japan’s two major app markets (Apple App Store, Google Play) in July. It is ranked 12th in the world rankings on the same basis (total sales from two app markets, excluding games). This is the first time that Piccoma, a latecomer of the Japanese comic platform, has ranked first since its launch of service in April 2016.

Since the launch of the service, Piccoma’s sales have more than doubled every year, and its transaction volume in 2Q20 increased 2.5 times compared to the previous year and 61 percent QoQ. From 4Q19 to 2Q20, operating profit was surplus for three consecutive quarters, and profitability is also growing significantly.

Japan’s comics market is the no. 1 in the world with a size of about 5.7 trillion won, and last year, for the first time ever, sales of the digital comics market beat the sales of the paper comics market. Digitally, unlike Korea where comics are viewed through apps, there is a web comics market with a size of 2.15 trillion won in Japan, and the app comics market to which Piccoma belongs is sized about 800 billion won, less than half of the level. As mobile content consumption is expected to be active in the Japanese market, Piccoma’s drastic growth is also expected to continue.

One of the driving forces that fascinated the Japanese comics fans is webtoon, the Korean-style business. Webtoons are optimized for mobile and are gaining great popularity among younger generations who prefer snack culture contents, and Piccoma is receiving high-quality K-story IP (intellectual property rights) from Kakao Page, one of Kakao apps. As of July, of Piccoma’s 30,000 works, the number of webtoons accounts for 1.3 percent, but it is experiencing explosive popularity, taking 35-40 percent of the total transaction value.

Looking at the recent trend of popular works, a portfolio of diverse cultural background has established in the top ten sales made up of 5-6 Korean works, 3-4 Japanese works, and one Chinese work, heightening the anticipation for future growth. As the works from Korea, Japan, and other countries are receiving attention at the same time, Piccoma users are gaining the environment to enjoy a variety of high-quality works.

CEO Kim said, “Piccoma’s ranking no. 1 one in the app market sales for the first time is a very meaningful record. Considering the entire comics market in Japan, now is the real start of the growth. Together with Kakao Page, we will develop the competitiveness of the webtoon to continuously lead the growth of global comics market.”/.