KRAFTON

Why is KRAFTON so invested in the Indian market?


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“BATTLEGROUNDS MOBILE INDIA”, abbreviated BGMI, could be referred to as the go-to game in India. One year into its release in July 2021, BGMI amassed more than 100 million users in total and ranked number one in app sales in India. On top of that, BGMI is the first esports event live broadcast on TV in India with 24 million simultaneous viewers and 200 million viewers in total, establishing itself as a pioneer to build the esports ecosystem in India. In response to its growing popularity, KRAFTON is gearing up for more diverse investment and co-growth plans in India. The KRAFTON team met with Harns Kim and Brian Byunghyeon Lim from the India Support Team to hear about why KRAFTON is so big on the Indian market and what lies behind BGMI’s popularity in India.

Hello. Can you please introduce yourself?

Harns Kim: Nice to meet you. I am Harns Kim and I am leading the India Support Team. I started to join the team because I wholeheartedly agreed with the management’s vision that the gaming market in India would be the next big market in the future.

Brian Byunghyeon Lim : Nice to meet you. I am Im Byung Hyun from the India Support Team. 

What are the primary responsibilities of the India Support Team?

Harns Kim: Our work spans all domains that require support in India. When KRAFTON India takes on a project that requires more input from the head office, we jump in as the HQ.

For instance, a lot of PUBG Mobile events are in the works this year to celebrate the 50th anniversary of diplomatic relations between Korea and India. It is quite challenging for the India office alone to pull this off with its limited budget and input.

This is where we come in – dealing with tasks for which the line is fuzzy, whether it be geographical or divisional. We deal with a budget request and approval and call for support from esports teams in Korea and India. In addition, we work as a coordinator between relevant divisions from Korea and India for PR and GR (Government Relationship).

We are basically involved in every project in the Korea office that has “India” in it, supporting a variety of projects – finding games to publish in India, collaborating with developers, helping to establish an Indian investment fund in partnership with Korean VCs, and creating a network in India with support from the Indian Chamber of Commerce in Korea and the Embassy of India in Korea.

The fact that we are the first team that has a specific region in its name to provide strategic regional support demonstrates KRAFTON’s commitment to the Indian market. 

Then, what are the responsibilities of KRAFTON India?

Harns Kim: The biggest responsibility is to publish KRAFTON games including BGMI. BGMI, New State Mobile, and Road To Valor: Empires are currently in service and we are actively looking for publishing opportunities to publish more Korean or global games well-suited for the Indian market. 

Ongoing investment efforts in game and technology in India and the MENA region (Middle East & North Africa) revolve around Corp Dev in the India office instead of the HQ. 

Despite its huge potential, the regulatory landscape in the Indian gaming industry is quite volatile compared to Korea or the global market since it is still in its infancy. Also, as BGMI and KRAFTON have a high profile in India for various reasons, timely response is often required in an array of issues including PR, esports, and government relations. This is why the India office has more liberty in operation than other overseas offices. 

The India office aims to go beyond providing KRAFTON games to Indian users and strives to achieve greater success for KRAFTON – securing a firm position in the gaming ecosystem and becoming an esteemed and admired corporation in India. All residents and local workers are putting in a lot of effort towards that goal.

Well, it seems that the Indian market is quite different from other global markets. 

Brian Byunghyeon Lim : The most pronounced characteristic is that mobile takes up a disproportionate share. Only a fraction of users used to have PCs or consoles. Then, low-priced cell phones started to be rapidly distributed, and wireless communication infrastructure greatly improved, all contributing to explosive growth in the mobile gaming industry. 

Also, the user base is quite young. The average age in India is late 20s. So, we are seeing a lot of passionate and lively users. 

Lastly, social elements are considered most valuable in the Indian market. In India, drinking alcohol is uncommon and entertainment is scarce, which makes playing games with friends the primary social activity.

That’s why multi-player games are preferred over single-player ones. On top of that, voice chat in BGMI is most used in India than in any other country, which is understandable considering 23 common tongues and a highly complicated typing system in India.

Another thing that sets the Indian market apart from any other markets including Korea is that RMG (real money gaming) or fantasy sports where participants assemble virtual sports teams and play games – making a bet and earning money depending on the result – account for 50% of the gaming market. 

Let’s get to the point. Why do you think BGMI is so popular in India?

Brian Byunghyeon Lim : There are several factors at play. First of all, BGMI offered young Indians what they needed with rapidly growing mobile Internet access – a game to play with friends. Most users play in a squad. BGMI is a survival game, but cooperation with teammates is crucial for survival. 

A lot of users enjoy intense play or just have fun using voice chat for interactions. Even newbies can easily learn how to play the game following their friend’s instructions and have fun.

In addition, with the exception of cricket, other professional sports have a little presence in India for the size of the population, which allows BGMI esports to get an exceptionally high viewership. Besides the official championships, there are many big or small esports tournaments hosted by third parties across India. 

These tournaments are springing up because good performance in a BGMI esports tournament ensures not only a prize but also a fandom and an opportunity to become an influencer. The large base of BGMI streamers is also a contributor to the game’s popularity.

Then, what distinguishes BGMI from PUBG Mobile?

Brian Byunghyeon Lim : There are a few important factors. First, the information security policy of BGMI follows the guidelines provided by the Indian government. Planning and execution on specifications and operations are mostly conducted by the India office. Events to celebrate India’s important holidays or items and skins that feature Indian culture are exclusive to BGMI. 

And even globally popular content can be completely removed before the update if considered not inappropriate in India. We are striving to get across a message to people in India that PUBG Mobile and BGMI have grown out of the same root but they are different games in many respects.

Does BGMI provide any functions or content exclusive to Indian users? 

Brian Byunghyeon Lim : As I mentioned earlier, we provide events that celebrate important Indian holidays, and various skins or items that reflect Indian culture. Also, we keep updating new content or items in collaboration with BGMI influencers or partners.

On top of that, we are planning to update a skin in partnership with one of the most famous Indian movie stars. To put this into perspective, he is as famous in India as Lee Jung Jae or Jung Woo Sung in Korea, which points to the predominant reputation that BGMI has built in India.

In what direction will BGMI move forward down the road?

Harns Kim: Even before it was banned and resumed, BGMI had been already a famous game that even Prime Minister Modi recognized. But after a blaze of publicity, even non-gamers in India have become familiar with it, whether we like it or not. 

I think BGMI needs to aim higher than being just a popular game and strive to position itself as a widely-loved game in India. 

To that end, marketing efforts along with engaging in continuous community activities are imperative to emotionally appeal to Indians not to mention a satisfying game service. The documentary INDIA KI HEARTBEAT (the Heartbeat of India), released on YouTube following the lift of the ban, is part of the efforts. (Link) The documentary covers the stories of users enjoying BGMI in India. 

When StarCraft came out in the late 90s, it was unimaginable that it would be loved by so many people for such a long time. But now everyone knows that the lifespan of a game all depends on how well the developer manages it. Our goal is to keep the love and interest in the game alive in India even ten years from now. 

Let’s delve into the Indian market. What opportunities is KRAFTON seeing in the Indian market? 

Harns Kim: India is witnessing rapid growth both in quantity and quality. We can’t say that the market is a major one for now, but its potential is limitless. However, global game developers are not rushing to explore opportunities in the Indian market. So, we are trying to move quickly to find and launch a game that caters to the market needs, at the same time minimizing trial and error. 

The success of BGMI is the beginning of it. How many more games do you think will be played in the market with 1.4 billion potential users with the average age of 28? BGMI has definitely put us in a strong position at the forefront of the market to drive up growth.

What were the stumbling blocks in the Indian market?

Brian Byunghyeon Lim : Well, I guess adapting to the unique market conditions in India and its regulations was quite challenging. BGMI has now resumed thanks to all the support and hard work many people put in. 

The ban period served as a great lesson for us to understand more about the Indian market. Though more challenges might await us, I think we will move quickly and adeptly down the road.

Also, the consumption pattern among Indian users is quite different than in other countries including Korea. For example, a paying-user conversion rate remains sluggish even after gaining popularity and in-game purchase rates are also low in India compared to the global service. I think more consideration on BM is required at the planning and execution stages to meet the needs of Indian users.

Could you tell us about investment plans in India?

Harns Kim: We are planning to continue large-scale investments in games, digital entertainment, and content with keen interests in the Indian market. Game development relatively lags behind other IT services in India. However, as seen in the case of Korea, once game companies start to make money, a bigger talent pool will be created in the gaming industry, which will in turn propel growth.

With BGMI positioned as the biggest title in the Indian market, KRAFTON will not spare any effort to make investment in startups as well as Indian game developers to pursue co-growth in the industry. Along with direct investment, KRAFTON is also looking to team up with Korean venture capitals to create funds dedicated to making investment in India so that we can expand our relationships with India firms to boost partnerships.

Do you have any plans to provide support for the PUBG India community?

Brian Byunghyeon Lim : We have always been with the PUBG India community and we always will be. From the beginning of BGMI, KRAFTON has been working with the PUBG India community. We are all one big family – users, BGMI esports players, influencers, every member of the PUBG India community, and KRAFTON. 

We are deeply invested in boosting this ecosystem through various activities – equity investment in local companies regarding esports and live streaming services, and partnerships in esports events, launch parties, and community events. Indeed, many users have been watching esports games in the events organized by third parties since the resumption of BGMI in late May, though we were not directly involved. We are also planning to announce the timeline for the official esports championship.

Furthermore, we are expanding PUBG tournaments that were concentrated in major cities to include small cities across the country. Also, national tour tournaments are in the pipeline with some of the prize money going to the local communities. 

Are you planning any marketing strategies specific to the Indian market?

Harns Kim: The biggest difference between India and Korea or Japan is the standing of esports. Esports holds quite a special position in India. Esports is the third most popular pro-sport in India following Cricket and Kabaddi. The popularity is such that esports players are celebrities that young Indians look up to. Many Indian esports players are also extremely popular influencers on platforms like YouTube. As esports is all the rage, even third-party esports companies with no relations to game developers are hosting many competitions across the country.

Marketing efforts on Road To Valor: Empires, launched last March, will center around esports rather than conventional user acquisition. It’s noticeable that while many games pursued success with esports-centered marketing strategies, only a few managed to successfully establish a new esports league. However, I have no doubt that KRAFTON can be an expert in esports-driven marketing in India with perseverance and continued investment.

What is the most important success indicator in India for KRAFTON?

Harns Kim: I would say producing another mega hit after BGMI. If KRAFTON does not settle for BGMI’s success and creates a great line of games that can appeal to Indian users, it can solidify its position as a leading game developer in India. 

Opinions may vary on what a game needs to be considered a hit in India, but I believe it is traffic over the short term and sales in the long run. India has low per-capita GDP and the rate of paying users is low especially at the beginning of the launch. However, I think that a game with stable traffic is bound to see growth in sales as seen in BGMI.

What are the challenges KRAFTON is facing in the Indian market? 

Brian Byunghyeon Lim : The primary challenge is to understand this specific market environment and adapt to it in developing and publishing a game. It’s noteworthy that It’s been only five or six years since gaming started to gain momentum in India. This leaves the Indian market with unique characteristics. For example, the user base or sales are concentrated in a fraction of genres. The market has specific preferences – some global hits are rarely played in India while big hits in India are not popular in anywhere else. So, adaptability is one big focus in running a gaming business in India. Another one is to develop capabilities to spot new popular genres and games that would work in the market. 

From a broader perspective, it’s imperative to adjust to specific government regulations and communicate with various stakeholders. The process of unbanning BGMI allowed us an opportunity to get a better understanding of the Indian market and equip ourselves with better capabilities to respond.

Do you have any last comments?

Brian Byunghyeon Lim : I would like thank every user for their interest and love for BGMI. I think resuming the service was only possible thanks to all the stakeholders and users, and their support. Please keep on supporting BGMI. We will do our best to provide the best service in India. Also your support to Road To Valor: Empires, New state Mobile would be much appreciated. We are deeply committed to building a strong relationship with users with more games coming your way!

Also, I would like to take this opportunity to express my gratitude to KRAFTON members for all the hard work to resume BGMI, provide stable services, and support India operation. 

Harns Kim: After its mega hit StarCraft in the late 1990s, Blizzard managed to be on a winning streak with Diablo, the Warcraft 3, and WOW. It has become the most well-received and respected game developer in Korea, even though it is an overseas developer. 

KRAFTON holds a very special place in BGMI fans in India. If we can introduce another successful game in India, we will be able to host an event of a scale even bigger than that of BlizzCon in its prime years.

Following the lift of the ban, we have a new catchphrase set for BGMI marketing in India. “It’s not just a game, it’s an emotion”. India is a country home to the largest youth population in the world. I believe that If we keep releasing games that captivate young Indians, it won’t be just a dream for KRAFTON to become the most beloved company in India. Don’t you agree?