Pokemon and the Thai economy: ‘Go’ or ‘No Go’?
LAST WEEK, my Facebook feeds were flooded with many of my friends sharing their pictures with Pokemon on the release of Pokemon Go in Southeast Asia and parts of Oceania.
Is Pokemon Go, a location-based augmented-reality game, a global hit? Probably.
It has set a world record as the first application ever to reach 10 million downloads within just one week (with a limited geographic launch).
Pokemon Go does well not only as an entertainment app but also as a market mover.
Since its release, investors have felt optimistic about it, as share prices of Nintendo Co, the owner of the Pokemon trademark, almost doubled, adding US$15 billion in market capitalisation.
To me, Pokemon Go has three key features that will drive its long-term success. First, it creates strong interpersonal relationships across generations (adults to children), as Pokemon is already a legendary entity.
Second, collecting elements drives users to stay tuned to the game, with a lot more Pokemon elements in line for the next releases. Since the current Pokemon franchise includes 722 revealed species, players who want to “catch them all” need to spend at least five more years in the game.
Third, the innovative system of playing encourages users to interact with the real world. Unlike virtual-reality goggles or Facebook’s Oculus Rift, the best part of the game is bringing people out of their dark rooms, finding Pokemon elements, and building real social connections.
I think the combination of these three advantages could lead to digital living, which is a trending area nowadays. How can Thai businesses take advantage of Pokemon Go?
Everyone obviously can imagine that Pokemon Go is able to raise traffic to a location where there is a PokStop PokeStop or a Gym nearby; many people would come to get items or duel with each other (in a game, of course).
In other words, location-based businesses, such as those involved in travel or leisure, should get direct benefits.
However, we cannot just pay to get a PokeStop or a Gym.
According to my personal research, current PokeStop and Gym locations are based on location data of Niantic, the developer of Pokemon Go. A PokeStop is a place that helps people discover and promote their community.
That is why we see locations with a cool story, a cool piece of art, unique architecture, or hyper-local places usually becoming PokeStops or Gyms.
Unfortunately, Niantic stopped accepting new locations on September 2, 2015, and we do not know when it will reopen the contest again. So the odds of getting your location listed as a PokeStop or Gym any time soon are vanishingly low.
Missed a rare opportunity?
I think Pokemon Go is another wake-up call for the Thai economy, that we must work harder to promote our precious locations and urbanisation.
In Thailand, almost 90 per cent of PokeStops and Gyms are in Bangkok. That tells us that only a small number of places with distinct character in Thailand are known in a global context, and that Thais do not promote their locations well enough.
“If opportunity doesn’t knock, build a door,” a quote from Milton Berle, is definitely what Thai businesses have to keep in mind. If you buy the idea that a technology-oriented life is the future and not a fashion, location-based information will eventually become a new asset type. Therefore, what we should do is invest in it.
Building a cool place for people to enjoy the community could open an opportunity of having a PokeStop or Gym near your place when the time comes. In the meantime, regular “likes”, comments or shares on the Internet will keep your locations on the front page of digital life.
What can the government do to help the economy?
Spending on renovating rural historic buildings or advertising campaigns to promote rural tourism is not an immediate need for Thailand. Security and privacy protection are the keywords to let Pokemon “Go” or “No Go”.
While we want to get Pikachu, new friends and excitement from the game, poor security and privacy control could lead to stalkers, theft and malware.
Our government should work quickly on these issues and not let Pokemon Go (or any advanced technology) turn into trouble for society.
Once we ensure safe Pokemon sightseeing, players can become urban explorers, and the economy can “Go” with Pokemon long-term.
Views expressed in this article are those of the author and not necessarily of TMB Bank or its executives. Jitipol Puksamatanan is a global economist at TMB Analytics. He can be reached at [email protected].
