Pioneering the Future of Entertainment

Japan’s entertainment industry has a long and rich history, but in 2025, it finds itself in an increasingly competitive landscape, facing strong regional rivals like China and Korea. In this evolving market, what do you see as the core strengths of the Japanese entertainment industry that enable it to compete on the global stage?

When looking at gaming, animation, and entertainment as a whole, though Japan has a strong presence in the gaming industry, Japan’s real strength lies in 2D content—specifically manga and anime. Looking across the region, other countries have their own areas of dominance. For example, K-pop from Korea has taken the world by storm, while the U.S. and China, backed by strong government support, are aggressively advancing in the gaming sector.

Beyond gaming, anime, and manga, Japan is not as strong in the entertainment industry. That’s why we are focusing on intellectual property (IP) content, aiming to leverage and expand Japan’s cultural assets to remain competitive in this rapidly evolving global market.

Japan is facing significant demographic challenges due to its aging and shrinking population, with projections indicating that the population will fall below 100 million by 2050. As the talent pool decreases, the creation of original and new IPs becomes more difficult. How is your company addressing these challenges, and to what extent do you see internationalization as a necessary step for sustaining growth and creativity?

Japan’s aging population is undoubtedly affecting the entertainment and creative industries, but at the same time, new platforms like social media and YouTube have provided tools that allow individuals to showcase their talents more easily. On a macro level, the youth population is declining, but each young creator today has a far greater reach than before. In that sense, Japan is adapting well to these demographic shifts.

In terms of animation, Japan remains a global leader in quality, but production costs have skyrocketed. In the past, an entire series could be made for a few million JPY, but now, a single series can cost upwards of JPY 300 million. Hit titles have episode budgets exceeding JPY 100 million, maintaining high-quality standards but pushing costs to unprecedented levels.

At the same time, countries like China are highly skilled at identifying popular trends and producing similar content at lower costs. This creates a competitive challenge, forcing Japan to carefully balance quality and production costs in order to stay competitive internationally.

This is where offshoring plays a role. While Japan remains a leader in animation quality, we are looking at ways to optimize costs while preserving that quality. We have subsidiaries in Thailand, and we are actively considering options for producing animation at lower costs while maintaining the craftsmanship and value that Japanese content is known for.

Japan is renowned for its quality, and as a result, Japanese IPs have gained tremendous popularity worldwide. With this growing demand, many companies are looking to capitalize on collectibles and merchandising. We’ve seen that you’ve launched  Brave storesto establish connection points with consumers across the globe, including physical retail locations in Shanghai, Bangkok, and Haneda Airport, among others. Can you share your strategy behind  Brave stores and the specific customer segments you are targeting? How are you creating attraction through limited edition items and leveraging the global popularity of Japanese products?

Japanese IPs and content have grown immensely in popularity worldwide, driven in part by platforms like Netflix and the effects of the COVID-19 pandemic. With people spending more time at home, they began exploring new types of media, and both Korean dramas and Japanese anime benefited greatly from this shift in viewing habits.

One of the key reasons anime resonates so strongly, particularly with Western audiences, is its complex and engaging storytelling. Japanese creators pay close attention to intricate details, a mindset shaped by Japan’s insular history, where careful consideration of nuances has always been important. In contrast, many Western superhero stories follow a simpler good-versus-evil formula where the heroes always win. While entertaining, these stories can sometimes lack the depth found in anime. Japanese anime often features multi-layered narratives, long-term character development and interrelated subplots, and immersive, feature-length storytelling that will engage viewers for a long time.

Over the past few years, we have significantly increased our presence at anime events, and the surge in global interest is undeniable. In cities like Paris and Bangkok, there are many small shops selling anime merchandise, but demand is far from being fully met. Currently, there are only a limited number of companies actively expanding anime merchandise overseas.This gap presents an opportunity for us. Our strategy with Brave stores is to position ourselves in the international anime merchandise market, fulfilling unmet demand and expanding our retail presence in key global markets.

Brave stores Haneda

There is clear demand for your stores in France, Thailand, and other international markets. Are there specific countries or regions you are targeting for future physical store openings? What factors influence your decision when selecting new locations?

We are currently focusing on Asia for several reasons. One key factor is the minimal timezones difference, which makes business operations more manageable. Another important point is the cultural similarities—many anime fans in Asia learn Japanese, reducing the language barrier and making it easier to sell products without extensive localization efforts.

While the United States is the second-largest market for anime after Japan, entering that market requires significant localization, making it a more complex endeavor. Additionally, with the current weakened JPY, now is not the ideal time for expansion into the U.S. Given these challenges, we believe our best strategy is to focus on Asia first.

Specifically, we are targeting China and Southeast Asian nations. By accumulating expertise and refining our expansion model in Asia, we will be better prepared to apply that knowledge when we eventually expand into the U.S. and Europe in the future.

You mentioned the challenges of localization, which is particularly complex in the animation and gaming industries. It’s not just about translating words but ensuring that the meaning, cultural nuances, and emotional depth of the story are effectively conveyed. Your overseas subsidiaries have already been active in localizing content into Chinese and English. How do you balance your localization efforts to maintain authenticity while making the content accessible to global audiences? Additionally, are there any new markets you are looking to expand your localization efforts into in the future?

There are two main approaches to international expansion: one is bringing the product directly from Japan without modification, and the other is full localization. Our strategy varies depending on the region.

For markets like Thailand, China, North America, and Europe, we do not simply release Japanese content as is. Instead, we invest in localization by sourcing local voice talent and establishing our own companies in each region. For example, when launching VTubers, we hold auditions and debut talent that is native to each market. This approach allows us to better connect with local audiences, as trends and preferences vary widely—Europeans, for example, have a strong interest in sports within gaming, so we take these cultural factors into account when developing overseas strategies.

Globally, the number of otakus—enthusiastic fans of anime, gaming, and related content—has grown significantly. In the past, the term otaku carried a negative perception, often associated with obsessive fandom. However, with anime’s rising popularity in the West, that stigma has faded, and acceptance has increased.

When localizing for the American market, we also consider cultural factors such as gender equality, which has led us to include women in traditionally male-dominated groups. In contrast, Thailand has a deep appreciation for Japanese culture, so we have not needed to heavily localize content there.

Moving forward, we will continue to refine our localization strategies based on market needs, ensuring that our content remains both authentic and appealing to diverse global audiences.

Your company was founded in 2017, and while you may have started as a startup, you have since grown into a solid company with extensive knowledge and expertise, thanks to multiple M&A activities. What would you say sets Brave group apart from its competitors? What makes your business model unique in the entertainment and content creation industry?

Within our group, we have 17 companies, and in the IP and content industry, there are no other startups executing M&A at the scale that we are. One reason for this is that many entertainment companies are led by CEOs who are also content producers. While they excel in content creation, they often face challenges in business management. As a result, some companies struggle to scale or sustain their operations. Our mission is to support these companies with management expertise, allowing them to focus on what they do best: creating great content.

What makes Brave group unique is that we are not just content creators; we are also IP strategists. We develop our own IP, but we also help expand and monetize the IPs of others. Our client portfolio includes major names like Sanrio and Shueisha, and our goal is to build an IP ecosystem that brings together producers, creators, and YouTubers—not just in Japan, but on a global scale.

Because of our strong foundation in IP creation, we also have the ability to collaborate with other companies, leveraging our expertise to enhance and promote their content. Additionally, we are always on the lookout for diamonds in the rough—undiscovered but exceptional content and creative works that have the potential to reach a global audience.

Ultimately, Brave group is more than just an IP production company. We are a company that nurtures and manages creative talent, strengthens IPs, and builds a network that expands Japanese content worldwide. This holistic approach to entertainment and content creation sets us apart from the competition.

A selection of Brave group’s VTubers

Are you looking to replicate the success you’ve had in Japan in overseas markets by identifying and acquiring these diamonds in the rough—exceptional but undiscovered content and IPs—in international markets? If so, what regions or industries are you particularly interested in?

In August 2024, one of the leading VTuber projects in the U.S., idol joined  Brave group US, further expanding our presence in the VTuber industry. Since VTubing first emerged in Japan in 2016, it has grown into a global phenomenon, with VTubers now active in nearly every country. Through this expansion, our company has built strong connections with startups in the VTuber space worldwide, and we personally have developed relationships with many company leaders in this field. With these connections, we are now looking deeper into the Asian market to explore potential activity there—so you should be keeping an eye out for some exciting announcements soon.

Beyond VTubing, our company is also very strong in e-sports. Gaming streamers are becoming increasingly valuable in Japan and internationally, as e-sports is evolving beyond just playing video games. Younger audiences are deeply engaged in the competitive aspects of gaming, analyzing strategies in a way that mirrors traditional sports. Recognizing this trend, we launched VSPO!—VSPO! is a Next-Gen Virtual-esports Project dedicated to inspiring our fans by embracing new challenges through the universal languages of video games and esports.Our VTubers actively participate in a wide range of activities, from streaming and e-sports tournaments to collaborations with anime and cultural media.

When it comes to gaming talent, performers and streamers love their hardware. As a testament to our strength in the gaming sector, our company developed a high-end keyboard with 21 unique models, and sold at JPY 27,500. Despite its premium price, it became a massive success.

Going back to what differentiates Brave group, our deep expertise in gaming—from VTubers to e-sports to gaming peripherals—sets us apart and solidifies our position as a leader in this space.

Brave group has clearly established itself as a global company, with numerous subsidiaries operating overseas. You’ve also mentioned the idea of creating a linked platform that integrates your e-sports and VTuber projects. Is there a particular country or region where you are looking to focus your efforts and further expand your presence in the near future? What factors influence your decision on where to grow next?

Right now, South Korea is a major focus for us. The VTuber market is experiencing massive growth there, and we are actively exploring alliances to strengthen our presence. Additionally, in the e-sports space, Korea is one of the global epicenters, and it aligns well with the K-pop wave that continues to captivate audiences worldwide.

We see enormous potential in the concept of Virtual K-Pop, merging the appeal of K-pop with VTuber culture to create something entirely new and unique. This fusion could redefine entertainment by blending music, gaming, and virtual performances into one cohesive experience.

Moreover, the virtual artist concept offers an important advantage: it allows talented individuals who may be too shy to perform in front of a camera to shine in the virtual space. This opens up a whole new talent pool and further broadens the entertainment landscape.

Looking ahead, South Korea represents a key market where we can leverage these trends, pushing the boundaries of VTubing, e-sports, and virtual music to create next-generation entertainment experiences.

If we were to return in two years and have this interview again, what goals or dreams would you hope to have accomplished by then? Where do you see Brave group evolving, and what milestones would you like to have reached?

In the next two years, my goal is to establish and stabilize the culture of VTubing overseas. While VTubing is primarily a YouTube-based medium, it involves many performers who now have a way to express their talents anonymously. In the past, aspiring singers, actors, and entertainers had to expose themselves publicly to succeed. However, VTubing provides a protective layer of anonymity, allowing people with talent to shine without the pressure of being in the public eye.

I see massive potential in this space, and I believe there is still significant room for growth. Ideally, I want to see VTubing embraced and enjoyed by global audiences through our content, but even if other companies help drive its expansion, any growth in VTubing benefits the long-term vision of the industry as a whole.

Beyond VTubing, we are also focused on IP creation. One of our key projects is the development of a VSPO! animation series, with plans to release it starting in 2026. Our broader vision is to become a digital version of Shueisha—not just creating original IPs but also acquiring and growing IPs through M&As. We want to scale our business to align with major entertainment giants like Disney, Nintendo, and Sony, establishing Brave group as a global leader in digital entertainment and IP development.

Brave group’s purpose is to deliver exciting content and unseen experiences born in Japan to a worldwide audience yet to be unlocked, as embodied in our mission, “Strike wonder in 8 billion hearts”.

For more information, please visit their website at: https://bravegroup.co.jp/en/