XG's Rise Highlights Japan's Growing Influence in Global Music Scene

The rookie music group XG made an impressive appearance at the KCON LA festival, captivating Korean pop music fans with their cover of 2NE1's hit "I Am the Best" from 2011. This performance showcased the group's talent and hinted at their potential for global popularity.

Despite their K-pop style, the members of XG are all Japanese, a fact that sets them apart in the Los Angeles event attended by tens of thousands. Under the guidance of producer Simon Park, with a Korean father and a Japanese mother, XG underwent over three years of training. They debuted with the English song "Tippy Toes" and have since performed in various international locations, planning a global tour starting in May.

XG's success is part of a broader trend of Japanese acts gaining international attention, adopting K-pop strategies or tapping into the anime culture. Japan's music industry, traditionally focused on domestic audiences, is now evolving with digital revenues rising significantly. This shift is helping Japanese music, including J-pop and anime soundtracks, to reach a wider global audience.

The historical context of J-pop, rooted in Western jazz and blues, has evolved over the decades. However, the industry faced challenges in expanding globally due to restrictive practices. The rise of K-pop, exemplified by BTS's international success, has put pressure on J-pop to adapt and embrace digital and social media platforms for wider reach.

Recent scandals and the passing of Johnny Kitagawa have led to a decline in the dominance of traditional J-pop powerhouses, allowing for new artists and groups like XG to emerge. These new acts are leveraging platforms like YouTube and Spotify to build their followings, with XG already surpassing some established groups in terms of online presence.

Amidst these changes, companies like Sony Group are capitalizing on Japan's strong cultural asset, anime, to promote music globally. Artists like Yoasobi and Ado are finding success with anime soundtracks, with Ado's tour and Yoasobi's performance at Coachella marking significant milestones.

The integration of electropop and hip-hop elements is leading to the creation of new music genres, with XG's "X-pop" being a prime example. This innovation is part of a larger movement, with companies like Lapone and XGALX aiming to establish new genres and achieve global recognition.

As the J-pop industry continues to evolve, the focus on international markets is growing. XG, with ambitions of performing at major global events, represents the potential for Japanese music to make a significant impact worldwide.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.