Why Japan and Korea are outsmarting Western brands with mascots

In the West, brand mascots today are nostalgic relics. Tony the Tiger. Duracell Bunny. The Michelin Man. Cute, sure—but rarely more than passive passengers in the marketing mix.

But in Japan and Korea? There is a different story. Over there, mascots aren’t just cute faces—they’re economic engines. Culture drivers. They’re characters so beloved, they pull entire industries forward.

Turning characters into cashflow

In Japan, mascots (called yuru-chara) aren’t sidekicks. They’re the business strategy. Take Kumamon, a blobby black bear created to promote Kumamoto Prefecture, a rural and unhurried part of Japan that sits in the center of Kyushu, the southernmost of Japan’s main islands. For Westerners, he’s probably just another weird meme floating across X. But at home? He’s a powerhouse that has helped drive tourism and generate over $1.2 billion USD in regional economic impact.

This strategic mascot building such an incremental impact is not accidental. Japan has entire mascot schools, where performers train for months to perfect each character’s quirks and personality. Yet it doesn’t stop there. Costume designers, brand strategists, licensing agents—the mascot economy employs thousands and it's serious business.

After Kumamon exploded in popularity and proved mascots could breathe life back into struggling towns and regions, Japan’s government now backs mascot initiatives to boost local economies. Dozens of other regions have jumped on the bandwagon with mascots; examples include Funassyi, a squealing, headbanging pear fairy from Funabashi that went viral despite being unofficial, and Chicchai Ossan, a grumpy little “old man” from Amagasaki that became a cult hit, boosting local pride, merch sales, and tourism.

Meanwhile in Korea, brands like tech and retail giant Kakao didn’t stop at stickers and merchandise. They embedded mascots like Ryan the lion into physical spaces. From pop-up cafes to flagship stores, Ryan isn’t just a face—he’s a spatial experience. People queue for hours to step inside what is essentially a real-world brand world.

Takeaways for global brands

So what can Western brands learn from their Eastern counterparts when it comes to mascots? Here is some inspiration.

1. Don’t launch a costume, launch a world.
Stop seeing mascots as one-off stunts—and start treating them as IP that can spawn stories, revenue streams, and real cultural impact. Brands like Sanrio (behind Hello Kitty) don’t just license characters—they build lifestyle ecosystems around them. And why wouldn't they when Hello Kitty is the gold standard? A character that’s evolved from pencil cases to collabs with Balenciaga and £3.1 billion in annual revenue. Kitty’s not your average mascot. She’s an entire empire.

2. Use mascots to add humanity to your offering.
In a digital-first world, characters are connective tissue. They’re familiar. Relatable. Emotional. They humanize technology and transactional services. In Korea, Shinhan Bank’s SOL Friends turned sterile banking apps into relationship-driven experiences. Customers now get greetings and notifications from cute characters, turning banking into something more emotional. Where Western finance brands double down on efficiency, Korea leans into warmth.

3. Lean into fan culture and build communities, not just campaigns.
For example, Korea’s Woori Financial Group created WiBee Friends, a full-blown “idol group” of mascots. Instead of just softening the brand, they built a fan culture around banking, with these characters front and center in campaigns, merch, and events — proof that even finance can spark fandom. All of which points to one clear takeaway for Western brands: think beyond customers. Build fans.

4. Could you do more with your existing mascot?
Too many Western brands are underutilising a storytelling tool that could connect deeper, last longer, and generate more value. Important in the past, today mascots are often seen as decoration or something for kids. They’re also nostalgia triggers, something retro designed to sell a particular product like cereal or batteries. They play their part within marketing, but rarely are they a serious growth strategy.

5. Consider them IP.
In the East, mascots are treated like assets. They’re IP. Storytelling vehicles. Economic multipliers. The main difference therefore is long-term thinking. While Western brands chase quarterly KPIs, Japan and Korea play the slow game—building characters into cultural phenomena that outlive ad campaigns.

Mascots don’t have to be gimmicks; think of them as growth engines. And if there’s one final truth Western brands can’t ignore, it’s this: make mascots part of the business model.

Matthew Haysom, Creative Director