In the Korean-language Netflix megahit “Squid Game,” debt-ridden people take part in a deadly competition — lying, cheating and killing one another for a life-changing pot of money.
How is the streamer promoting the second season of such an anti-capitalist show? By selling merchandise, of course.
Retailers and brands including Puma, Johnnie Walker and shoe-maker Crocs are hoping that interest in the show will drive sales of products based on the ultraviolent dystopian series.
On Wednesday, Puma announced a line of green tracksuits similar to the ones the characters wear onscreen, along with sneakers and other apparel inspired by the series. The German clothing retailer created the actual costumes for the show.
“We saw an opportunity for us to be more than just a partner of creating consumer products, being able to also be in the show and be part of this cultural moment,” said Puma spokesperson Alberto Turincio. “Everyone knows what ‘Squid Game’ is. The fandom was just insane.”
Puma is just one of several global retailers and brands that are partnering with Netflix on merchandise inspired by its shows and movies.
For example, spirit maker Johnnie Walker created a “Squid Game” special-edition whisky, which features a teal label and its striding man logo wearing a tracksuit.
Previously, Netflix has worked with outside companies to create “Bridgerton” bread mixes and “Stranger Things”-themed Scoops Ahoy ice cream. For Netflix, the products are a way of keeping fans engaged with their favorite programs and driving excitement.
“The stories that are on Netflix end up becoming these cultural moments, and so I think people are excited to go along with us on that journey,” said Josh Simon, Netflix’s vice president of consumer products. “When they love it, they want to live it.”
Retail and consumer products are a growing business for Netflix. The company is hoping that selling T-shirts, booze and other items inspired by its programming will boost awareness for its programs while also providing additional revenue. Netflix has launched pop-up stores and restaurants to promote its shows and movies. It has created live events, including music performances, for similar purposes. Netflix said it has launched 40 unique attractions across 100 cities globally, reaching more than 7.5 million consumers.
Next year, the company will open permanent retail centers, called Netflix House, inside former department store locations in Texas and Pennsylvania that combine all those elements — food, merchandise and experiences based on Netflix programs. The company could eventually have 50 or 60 Netflix House locations globally, Co-Chief Executive Ted Sarandos said at the WSJ Tech Live conference in October.
The popularity of “Stranger Things” helped kick-start Netflix’s consumer products business as brands began reaching out to work with the company. In 2019, Netflix started its consumer products division and in 2021 launched a retail website. Over time, Netflix expanded its partnerships with more brands and hosted popular live events, including balls inspired by “Bridgerton.” It’s a playbook that was pioneered by Walt Disney Co. and copied by numerous others. Disney has a giant consumer products licensing business and at one time had hundreds of retail stores at malls across the country.
But unlike studios such as Disney, Netflix doesn’t have a large catalog of storied characters like Mickey Mouse, Woody from “Toy Story” and Elsa from “Frozen.” Also, Netflix’s most popular shows tend to be more adult-centric, and thus less obviously useful for retailers targeting children than Disney’s cartoons and Universal’s ubiquitous Minions.
But the streamer says the popularity of its adult-oriented programming is an advantage, because its viewers have disposable income and are willing to spend.
Netflix has a global audience of hundreds of millions of people, and its most popular shows have spurred shopping trends on their own. Fans have bought tracksuits to dress as “Squid Game” characters for Halloween or chess sets due to the fandom around “The Queen’s Gambit.”
“We’ve earned a little bit of goodwill to place bets on newer movies and TV shows, just because the fandom can catch up pretty quickly,” Simon said.
Retailers have already seen success with Netflix-related products. Bath & Body Works sold “Bridgerton”-themed fragrance collections such as “Diamond of the Season” starting in March, with lotions, soaps and candles. Over the launch period, the “Bridgerton”-themed products represented 4% of Bath & Body Works’ U.S. store sales, the retailer said.
The brands fit really well together, and the “Bridgerton” products brought in new shoppers, said Betsy Schumacher, the retailer’s chief merchandising officer.
“It had this immediate attraction to our customers and drove traffic and excitement in our stores,” she said.
“Bridgerton” was one of the shows touted at a meeting with brands last month. There are “Bridgerton”-inspired wedding dresses, $70 teapots at Williams Sonoma and $65 dog jackets.
“We’ve done a lot, but we won’t pause here,” Elena Vrska, who works in consumer products marketing at Netflix, said during a presentation.
“Squid Game” Season 2 represents a major opportunity for Netflix and its brand partners. The first season was the most watched Netflix show ever, with more than 330 million views to date. This month, Netflix will launch marketing campaigns showcasing the iconic green tracksuits from “Squid Game,” including a 4.56K run (a reference to Player 456, the show’s main character) during the “Squid Game” season 2 premiere in Los Angeles next week.
“We are expecting to sweep the world with green tracksuits,” Joyce Salaver, who works in brand strategy in consumer products for Netflix, said in a presentation to brands last month. “We will create a massive cultural moment that only Netflix can do.”
Netflix’s deals with brands can vary. The streamer in some cases receives a licensing fee or a percentage of sales with minimum revenue guarantees.
Larry Vincent, a USC Marshall School of Business marketing professor, said the licensees take on more risk generally than licensors such as Netflix.
“The real benefit of it is the exposure and the marketing value of more consumers and audiences aware that a program is active right now,” Vincent said. “You can think of these licensed merchandise extensions as just another marketing execution.”
In addition to working with brands, Netflix has its own in-house product development and creative teams that help with the products.
Matt Owens, co-showrunner and an executive producer of Netflix’s “One Piece,” said that when he was a kid, having action figures of movies and TV shows inspired him to reenact scenes and make up his own stories, which is how he started as a storyteller. Now, he’s working with Netflix on merch for his own live action series, based on the popular coming-of-age manga. One of the ideas he was involved with was “One Piece” trading cards based on the live action series that could be used in the “One Piece” card game. Owens said he has talked with brands regarding potential merchandise for Season 2 of the show but declined to name them.
Merch is “like a badge of honor” for fans, Owens said.
“It’s the same thing as wearing a jersey of a sports team,” Owens said. “It just adds that feeling that there are other fans all over the place.”
