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Future Watch: Consumer trends in South Korea

A recent Future Watch study on consumer trends in South Korea explores and analyzes key consumer trends that are shaping South Korean society and how these trends are likely to evolve over the next three to five years. The study is echoing future consumer trends not only in Asia but also in Europe. It is now clear that mobile and online shopping will become the main retail channel, and technologies like virtual reality (VR), augmented reality (AR), artificial intelligence (AI) and big data are changing the retail landscape.

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Future Watch: Consumer trends in South Korea

  1. 1. FUTURE WATCH: CONSUMER TRENDS IN SOUTH KOREA Final Report July 2019 © This document includes source material that is the exclusive property of Euromonitor International Ltd and its licensors. All such source material is ©Euromonitor International Ltd 2019 and provided without any warranties or representations about accuracy or completeness. Any reliance on such material is made at users’ own risk. Publication or making available of all or part of the material contained in this document (or any data or other material derived from it) may require Euromonitor’s prior written consent. Please refer to the applicable terms and conditions with Euromonitor.
  2. 2. • Introduction • Research Overview • Research Methodology • Management Summary • South Korea Overview • Economy, Demographics and Industry Summary Overview of South Korea • Analysis of Key Trends and Sub-trends • Shopping Reinvented • Loner Lifestyle • Connected Consumers • Healthy Living • Ethical Living Report Outline © Euromonitor International 2
  3. 3. • Research Overview • Research Methodology Introduction © Euromonitor International
  4. 4. © Euromonitor International 4 Project Background: Business Finland would like to understand consumer trends in South Korea that will help Finnish lifestyle brands position themselves to South Korean consumers. Research Objectives: Business Finland would like to:  Identify and analyse key consumer trends that are shaping South Korean society.  Understand how these trends are likely to evolve over the next three to five years.  Assess what these trends mean to Finnish exporters and provide key recommendations about the positioning of their products/ services to South Korean consumers. Euromonitor Solution:  Based on internal data, desk research and local know-how, Euromonitor has identified five megatrends and sub-trends prevalent in South Korea.  Euromonitor has assembled a comprehensive report detailing the megatrends and drivers as well as key sub-trends and the opportunities/ challenges shaping up in South Korea. Project background INTRODUCTION Research Overview Coverage Megatrends: • Shopping Reinvented • Loner Lifestyle • Connected Consumers • Healthy Living • Ethical Living Country Coverage: • South Korea
  5. 5. © Euromonitor International 5 Euromonitor leveraged in-house information, desk research and survey findings to analyse consumer trends in South Korea INTRODUCTION Research Methodology Desk Research 500 Consumer Surveys Analysis  Euromonitor’s internal reports and consumer lifestyle survey data  Desk research on national statistics, online articles and publications to understand the consumer trends, buying behaviour and innovative products and services in the South Korean market  Online consumer surveys were conducted with 500 consumers in South Korea  The surveys provided an understanding of consumer buying behaviour and opinions on various megatrends  Through the surveys, insights on shopping experiences and trends in consumer lifestyles were also gathered  Triangulation of all sources and information gathered to validate and distil insights on consumer behaviour, preferences, habits and interest level in the identified megatrends  Production of final deliverables
  6. 6. • Megatrends and Sub-trends • Implications of Megatrends • Opportunities and Challenges • Key Takeaways and Recommendations Management Summary © Euromonitor International
  7. 7. What are the key consumer trends shaping South Korean society? © Euromonitor International 7 Loner Lifestyle Spending Time Alone Solo Economy Being Myself Shopping Reinvented Business Finland Internet of Everything Digital Life Sell-Sumer Connected Consumers Healthy Living Self-healthcare Free From and Clean Label Mental Well-being Ethical Living Waste Not, Want Not Animal Welfare Gender Neutral Experiential Shopping Convenient Shopping Delivery from Anytime to Anywhere
  8. 8. 49% 94% 70% More focus on online channel and offer exclusive Finnish experience in offline stores © Euromonitor International 8 • Ageing, urbanisation and migration drive consumer demand, including the demand for a convenient and technologically advanced experience. • Consumers increasingly expect to extract value from the brand not only during a transaction, but before and after their purchases. • The shopping environment has dramatically changed in South Korea as online and mobile shopping have become the key retail channels. • Finnish brands should consider the online channel as their major distribution channel and offer an exclusive Finnish experience in offline stores. of survey participants think the digital experience is the most important feature in a store of survey participants use online delivery services at least once a week of survey participants use online platforms since they can order anytime IMPLICATIONS OF MEGATRENDS Shopping Reinvented Source: Euromonitor Consumer Survey
  9. 9. 44% Personal Style 94% Customised products and services are preferred by loner consumers © Euromonitor International 9 • Finnish companies can leverage the loner lifestyle trend by offering unique products and services customised to this segment since single-person households are outpacing growth and will represent 30% of total households in 2023. • Singletons tend to have higher disposable income and thus spend more in discretionary categories such as clothing, leisure, gadgets, communications and travel. • The growth in single-person households has also increased demand for convenience stores, single-serving food, space-saving furniture and appliances, etc. • Singletons are very active in expressing themselves and developing their own unique style. of survey participants prefer living alone to living with others is the #1 factor when purchasing apparel, accessories and footwear among survey participants of loner consumers participated in the survey use online delivery options at least once a week IMPLICATIONS OF MEGATRENDS Loner Lifestyle Source: Euromonitor Consumer Survey
  10. 10. 87% 77% 78% Online reviews and digital marketing are influential in purchase decisions © Euromonitor International 10 • As consumers share information and post product reviews in real time, Finnish brands should effectively use the internet to anticipate consumers’ needs for effective marketing and product innovation. • South Korean consumers are highly reliant on the internet for daily activities including taxi booking, playing games, watching films, food delivery, shopping for lifestyle products etc. • Connectivity has redistributed power to consumers, in that their demands are shared through the internet and companies must listen to them in order to sell their products. of survey participants consider online customer reviews before purchasing of survey participants are actively searching for convenient online platforms of survey participants think that online reviews are the most influential IMPLICATIONS OF MEGATRENDS Connected Consumers Source: Euromonitor Consumer Survey
  11. 11. 68% 66% 50% Products and services that enhance physical and mental health are demanded by consumers © Euromonitor International 11 • Although the wellness trend has been on the rise for many years, it does not seem to be fading as South Koreans continue to look for more ways to enhance their health. • As the silver population grows and millennials care more about their health, self-healthcare – such as self-medication, self-beauty and self-diagnosis products and services – is in demand. • The perception of healthy living is shifting beyond just physical health to represent a much more holistic view, where mental and spiritual well-being are seen as part of an individual’s complete health. of survey participants search the internet and apps for health information and self- diagnostic purposes of survey participants spend at least an hour a day on activities that reduce stress of survey participants prefer to buy organic and natural products IMPLICATIONS OF MEGATRENDS Healthy Living Source: Euromonitor Consumer Survey
  12. 12. 59% 70% 68% Products marketed as ‘clean’ and ‘ethical’ will be in demand © Euromonitor International 12 • Although ethical living is a new concept to South Koreans, increasing public awareness and education is encouraging more people to understand the importance of being ethical. • An awareness of environmentally friendly practices and animal welfare is increasing, and social standards in these areas are rising in South Korea. • Social ethics, such as gender non-discrimination, are also shaping into a major ethical trend. • Companies that do not fulfil these ethics are neglected and sometimes boycotted by consumers. • As Northern European companies are perceived as ‘clean’ and ‘ethical’ by South Korean consumers, it is important for Finnish brands to leverage on this perception. of survey participants buy products from ethical companies of survey participants try to impact the environment positively through their daily activities of survey participants donate their used products, sell them in secondhand markets, recycle them or use them for alternate purposes IMPLICATIONS OF MEGATRENDS Ethical Living Source: Euromonitor Consumer Survey
  13. 13. Challenges © Euromonitor International 13• With intense competition from existing brands, Finnish companies need to offer innovative products and services aligned with megatrends to establish their footprint. • All marketing efforts need to be localised for better return on investment due to reduced familiarity with the English language. • Products with healthy options and ethical positioning are costlier and restrict a brand’s reach to the mass consumer base. • Brands need to ensure an enhanced customer experience in every transaction in order to stand out among the competition. • Consumers need assurance about the security of their personal data. Companies need to be very careful with their digital marketing activities since brand perceptions are easily diminished by consumers in online platforms. • With continuous innovation, a changing business environment and industry dynamics, a brand needs to be updated, connected and relevant to stay competitive. • Health-conscious consumers are hard to connect with as they expect proactive product innovation from companies based on available data and information. • In a highly dynamic business environment with fast-paced innovation, large players experience a disadvantage since small companies are able to adapt to changes more quickly.
  14. 14. Opportunities • Finnish companies can ride on South Korean consumers’ current perception of Northern European goods as being of high quality and ethically manufactured. • Government initiatives and a growing awareness about health and wellness among South Korean consumers will fuel the demand for health- and wellness-related products and services. • Adoption technology such as digital watches and health measurement (sugar, blood pressure etc.) tools will empower consumers to a new level, where improved awareness about health and wellness should prompt more preventive health choices and also increase the potential for digital health tools. • With a very tech-savvy consumer base, brands can invest in effective digital tools and technologies to offer an optimised consumer experience, share personalised recommendations and directly engage with consumers. • Growing technology enables consumers to compare quickly so it is essential for brands to opt for an omnichannel sales approach. • There is an opportunity for companies to develop products with organic/ natural ingredients and sustainable packaging. © Euromonitor International 14
  15. 15. © Euromonitor International Consumers are empowered with technology and consumer-centric strategies will drive success Mobile/ online shopping has become the main retail channel, and technologies like virtual reality (VR), augmented reality (AR), artificial intelligence (AI) and big data are changing the retail landscape in South Korea. Finnish companies should adapt to this online, high- technology retail environment. Shopping Reinvented Healthy Living Loner Lifestyle Ethical Living Connected Consumers KEY TAKEAWAYS AND RECOMMENDATIONS FOR BUSINESS FINLAND 1 2 3 4 5 Single-person households reached 27% of total households in 2018, and Finnish companies need to customise their portfolios to cater to this segment that tends to spend more on items such as compact furniture, single-serving food and entertainment products and services. South Korea is one of the world’s leading countries in IT technology, and more than 95% of the population possesses a mobile phone. Finnish brands need to leverage digital platforms to connect with consumers on their shopping journeys, and ultimately to reach increased engagement, conversion and retention. Healthy living goes beyond mere physical health to represent a much wider horizon, where food, exercise, mental well-being and broader lifestyle issues are seen as a whole package. This trend offers the potential for nutritional alternatives and products that offer physical and mental well-being (e.g. organic products, online games/ activities to reduce stress etc). Finnish brands need to align their portfolios and value propositions towards consumer well-being. Although ethical living is a new trend for South Koreans, awareness of the environment, animal welfare and social ethics is growing. Finnish companies can leverage this trend by considering and marketing ethical initiatives such as sustainable sourcing, eco-friendly packaging and supporting CSR activities for causes consumers care about.
  16. 16. • Economy • Demographics • Industry SOUTH KOREA OVERVIEW © Euromonitor International
  17. 17. €1.4 trillion GDP 530 people/sq km Population Density 2.6% Real GDP Growth in 2018 Average gross income increased by 4% in the last five years, reaching €22,000 in 2018 © Euromonitor International 17 SOUTH KOREA OVERVIEW (Fixed 2018 exchange rates, current prices) (Fixed 2018 exchange rates, current prices) 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 2013 2014 2015 2016 2017 2018 Average Gross Income in South Korea 0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017 2018 Employment Rate by Gender Male Female 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 30,000 € 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ Average Gross Income by Age 2013-2018 CAGR 3.8% * Based on year 2018 Source: Euromonitor Passport – Economies & Consumers
  18. 18. Single-person households and Generation X are expected to constitute 30% of total households and population in 2023 © Euromonitor International 18 SOUTH KOREA OVERVIEW 18 82.4 years Life Expectancy 42.6 years Median Age of Population 51.6 mn Total Population 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1993 1998 2003 2008 2013 2018 2023E Households by Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6+ Persons 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1993 1998 2003 2008 2013 2018 2023E Population by Generation Generation Z Millennials Generation X Baby Boomers Silent Generation * Based on year 2018 Generation Z: People born between 1995 and 2009, Millennials: People born between 1980 and 1994, Generation X: People born between 1965 and 1979, Baby Boomers: People born between 1946 and 1964, Silent Generation: People born between 1925 and 1945 2004 onwards no data available for Silent Generation Source: Euromonitor Passport – Economies & Consumers
  19. 19. Millennials and Generation X shape the consumer trends in South Korea © Euromonitor International 19 • Millennials in South Korea are called Sampo Sedae (‘three giving-up generation’), a generation that has given up three elements of life – courtship, marriage and having kids – due to social pressures and economical problems. • Digital tools and the internet are integral to this group, and this generation is very active in expressing themselves through social media. Millennials: Pessimistic and tech-savvy Generation X: Combination of young and old SOUTH KOREA OVERVIEW • Generation X will represent the greatest proportion of the population in 2023. • Generation X adapts characteristics of both the younger and older generations. • This generation has the highest income, is a key consumer base for family-related products and services and is familiar with online shopping.
  20. 20. Lifestyle categories are expected to witness faster growth in 2022 © Euromonitor International 20 Apparel Housewares and home furnishings # Company Brands Company Share in 2018 1 Fast Retailing Co Ltd Uniqlo 5.0% 2 Kolon Group (Headquarters: South Korea) Kolon, Cambridge Members, Manstar 3.1% 3 Samsung Corp (Headquarters: South Korea) Bean Pole, Kuho, Rogatis, Galaxy 3.1% 4 LG Corp (Headquarters: South Korea) Daks, Hazzys, Maestro, TNGT, Towngent 2.5% 5 Adidas Group Adidas, Reebok 2.2% # Company Brands Company Share in 2018 1 Hanssem Co Ltd (Headquarters: South Korea) Hanssem 11.4% 2 Inter Ikea Systems BV IKEA 4.7% 3 Ace Bed Co Ltd (Headquarters: South Korea) Ace 2.5% 4 Hyundai Livart Furniture Co Ltd (Headquarters: South Korea) Livart 2.2% 5 Fursys Inc (Headquarters: South Korea) iloom 2.2% (millions) (Fixed 2018 exchange, historical current/ forecast constant prices) (Fixed 2018 exchange, historical current/ forecast constant prices) 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Market Size 0 € 2,000 € 4,000 € 6,000 € 8,000 € 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Market Size(millions) SOUTH KOREA OVERVIEW Source: Euromonitor Passport – Industries
  21. 21. Internet retailing will continue to observe strong growth © Euromonitor International 21 Beauty and personal care Internet retailing # Company Brands Company Share in 2018 1 AmorePacific Corp (Headquarters: South Korea) Sulwhasoo, Hera, Innisfree, Iope, Laneige, etc 22.9% 2 LG Household & Health Care Ltd (Headquarters: South Korea) The History of Whoo, The Face Shop, SU:M37, etc 20.3% 3 Procter & Gamble Co, The Oral-B, SK-II, Gillette, Head & Shoulders, etc 3.3% 4 L'Oréal Groupe Kiehl’s, Yves Saint Laurent, Lancôme, Biotherm, etc 3.0% 5 Estée Lauder Cos Inc Estée Lauder, Bobbi Brown, Jo Malone London, etc 2.6% (Fixed 2018 exchange, historical current/ forecast constant prices) (Fixed 2018 exchange, historical current/ forecast constant prices) 0 € 5,000 € 10,000 € 15,000 € 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Market Size(millions) 0 € 50,000 € 100,000 € 150,000 € 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Market Size(millions) SOUTH KOREA OVERVIEW # Company Brands Company Share in 2018 1 eBay Inc G Market, Auction 18.0% 2 SK Planet Co Ltd (Headquarters: South Korea) 11th Street 10.9% 3 Alphabet Inc Google Play 7.2% 4 Coupang LLC (Headquarters: South Korea) Coupang 7.1% 5 Wemakeprice Inc (Headquarters: South Korea) WeMakePrice 5.8% Source: Euromonitor Passport – Industries
  22. 22. • Shopping Reinvented • Loner Lifestyle • Connected Consumers • Healthy Living • Ethical Living TREND OVERVIEW © Euromonitor International
  23. 23. For each trend, Euromonitor created a structure to explore its meaning, influence and impact © Euromonitor International 23 Trend Summary Drivers Sub-trends Details of Sub-trends Product/ Service Examples Consumer Profiles
  24. 24. Shopping Reinvented © Euromonitor International 24 Economical and technological shifts have rewritten the shopping journey and experience. Shoppers expect value at all stages of the shopping journey and experience may define value more than price for some consumers. Online shopping has been the key retail channel in South Korea in past years. Now, as more consumers are looking for a more convenient way to shop, mobile shopping is on the rise. Furthermore, advances in technology have meant that consumers spend less time and effort when shopping.
  25. 25. Brands are focusing on providing a unified shopping experience across various platforms 25 © Euromonitor International Experience is as important as price Increasing online shopping 155% Increase in online shopping transaction values from 2013 to 2018 Source: Euromonitor Passport Online shopping transaction values in South Korea saw a significant increase from EUR23,628 million in 2014 to EUR60,376 million in 2018. Online shopping is not only familiar to young generations that are used to new technology, but also to older generations that are starting to realise the convenience of online shopping. South Korean consumers now expect to extract value from a brand not only during a transaction, but also before and after their purchases. Companies are differentiating themselves by providing the convenience of online services and the experience of offline channel offerings, thereby giving the consumer a seamless and cohesive omnichannel experience and providing entertainment in offline stores. What is it? More demand for simplicity As South Koreans demand more time for themselves, they are looking for a way to reduce the time and effort spent on shopping. Demand for simplicity has led the growth of mobile shopping, letting consumers shop anywhere and anytime. Advancement in technology is helping to provide simpler and more convenient shopping for consumers as well. #1 reason for shopping in stores Source: Euromonitor Consumer Survey 953%Increase in mobile retail value from 2013 to 2018 Source: Euromonitor Passport See or try before buying SHOPPING REINVENTED
  26. 26. EXPERIENTIAL SHOPPING Digital infrastructure, innovative technology adoption and changing consumer behaviour are shaping the retail experience © Euromonitor International 26 CONVENIENT SHOPPING DELIVERY FROM ANYTIME TO ANYWHERERetailers engage in experiential shopping when they make the pre- purchase process less transactional and focus on providing customers with exposure to their product or service in physical locations. The frontiers of experiential shopping are pushed further by technology like virtual reality (VR) and augmented reality (AR), which shift the shopping experience out of a physical location or enhance what is already there. As online shopping is already prevalent in South Korea, consumers now demand a more convenient way of shopping. The development of a mobile-friendly, omnichannel experience, simple payment methods, Q&A chatbots, voice-user interfaces, AI/ big data product recommendations etc are providing consumers with more convenience. In recent years, South Korea’s delivery service has evolved to allow customers to expect their delivery anytime, anywhere. Consumers can now receive their deliveries by the next morning, have their groceries delivered on a specific day of each month and order food delivery from their favourite restaurants through mobile applications. SHOPPING REINVENTED
  27. 27. Enhancing the customer experience with advanced technology Although the e-commerce market is growing rapidly, offline stores still represent a vital retailing channel as they can provide the customer with an experience that e-commerce cannot. Online and offline stores are in a symbiotic relationship; consumers check products offline and buy them through online markets and vice versa. Technologies such as AR, VR and AI robots are providing customers with a more improved experience. 27 91% 49% of survey participants go to offline stores for an innovative in-store shopping experience Source: Euromonitor Consumer Survey of survey participants think technology/ the digital experience is the most important feature Source: Euromonitor Consumer Survey EXPERIENTIAL SHOPPING © Euromonitor International
  28. 28. Special experiences are provided by high technology © Euromonitor International 28 LG Household & Healthcare Nepa LG H&H’s smart store provides various experiences and information to customers through AI and deep learning technologies. After analysing and rating a customer’s makeup, AI provides makeup know-how and recommends products. Source: http://www.lghnh.com/index.jsp Apparel brand Nepa provides shopping services through IoT, VR and AR technologies. ‘AR Fitting Zone’ lets customers wear clothes virtually, while a ‘Smart Brochure’ recommends products through a facial recognition system. Source: https://www.nepamall.com/main.do SHOPPING REINVENTED
  29. 29. Consumers are looking for the simplest way to shop Consumers are now spending less time and effort on shopping due to the introduction of e-commerce, but they want more. Consumers now shop anywhere and anytime with their mobile phones, receive an immediate answer from a chatbot when there is a problem, and pay by inputting a six-digit password instead of typing in credit card numbers. These technologies are expediting the shopping process. 29 of survey participants do online shopping because it saves time Source: Euromonitor Consumer Survey of survey participants look to online platforms to make daily life more convenient Source: Euromonitor Consumer Survey CONVENIENT SHOPPING © Euromonitor International 39% 77%
  30. 30. E-commerce retailers help their customers to simplify shopping © Euromonitor International 30 Naver Shopping LOSA Naver Shopping is an e-commerce marketplace that collects and shows products from other e-commerce platforms such as G-Market, Auction, etc. It also has a simple payment method system, Naver Pay, which is used by more than 10 million people. Source: https://shopping.naver.com/ LOSA, the AI chatbot of online shopping mall Lotte Shopping, provides various product recommendations according to purchase patterns, trends, TPO, etc. Source: https://www.lotteshopping.com/ SHOPPING REINVENTED
  31. 31. Delivery market is evolving to the next level The delivery market is growing rapidly in South Korea. Dawn delivery service, which delivers daily necessities and fresh food by morning if ordered the night before, is thriving. Many consumers also subscribe to a service that delivers their groceries each month. Food delivery service companies are expanding their reach by covering a wider range of restaurants. Consumers can also order food from restaurants that do not offer delivery by using a food delivery service online system. © Euromonitor International 31 DELIVERY FROM ANYTIME TO ANYWHERE of survey participants use online delivery services at least once per week Source: Euromonitor Consumer Survey 45% 94% of survey participants do online shopping because they can order anytime from anywhere Source: Euromonitor Consumer Survey
  32. 32. New types of delivery services are launched © Euromonitor International 32 Market Kurly Baemin Market Kurly is the online retailer of fresh food that delivers by 7 am the next morning if an order is placed before 11 pm. Market Kurly has more than 2 million users and enjoys more than EUR30 million in revenue each month. Source: https://www.kurly.com/shop/main/index.php Baemin is a food delivery service app that delivers food from restaurants that do not provide their own delivery service. It has more than 10 million active users per month. Source: https://www.baemin.com/ SHOPPING REINVENTED
  33. 33. LONER LIFESTYLE © Euromonitor International 33 Many neologisms such as hon-bap (eating alone) and hon-sul (drinking alone) have been formed to describe the lifestyle of single-person households. The rising costs of living and housing and the unemployment rate are discouraging people from getting married or extending their families, and this is fuelling the growth of single consumers. Single consumers tend to spend their time and money on hobbies and activities that enhance their full enjoyment of life. They enjoy spending time alone and are looking for products and services that can satisfy their individual needs.
  34. 34. Single-person households become the largest consumer group © Euromonitor International 34 Increase in single- person households What is it? Money for myself #1in consumption expenditure among types of households Source: Euromonitor Passport Single consumers have more freedom to spend time and money on themselves than married couples and family breadwinners. Rather than saving money for their children’s college tuition or their own retirement years, single consumers tend to spend more for immediate pleasure like hobbies, travelling, etc. Demanding more convenience 193%Increase in number of convenience stores from 2008 to 2018 Source: Euromonitor Passport Most single-person households consist of busy office workers and students. These consumers do not want to spend time on necessary daily activities such as cooking, shopping for groceries, cleaning etc, and want to spend as much time as possible on their hobbies and favourite activities. 97%Increase in number of single-person households from 2008 to 2018 Source: Euromonitor Passport The number of single-person households in South Korea increased from 3,526K in 2008 to 5,745K in 2018, witnessing 63% growth in 10 years. Single-person households also accounted for 27% of all family units in 2018, being the most common household type in South Korea. LONER LIFESTYLE
  35. 35. SPENDING TIME ALONE Single consumers spend time and money on themselves © Euromonitor International 35 SOLO ECONOMY BEING MYSELF Many single consumers prefer to spend time alone on their days off due to hectic job demands. They have a strong desire to secure time for themselves, which is their highest priority. Engaging in social networking, surfing the internet and watching films on demand are also high priorities for spending time on days off. Single consumers need products and services just for themselves. They want single-serving meals, a residence that is just enough for one person and small- sized furniture and appliances. They are willing to spend more for themselves and for expensive products and services if they are worth the value. As single consumers have more time to develop their own identities, they are interested in being themselves. They are very active in expressing themselves and developing their own unique style. Their desires in the way of self-esteem and self-attachment are strong, and this leads to preferences towards local, craft and personalised products and services. LONER LIFESTYLE
  36. 36. Spending time alone is a way of relaxing Single consumers prefer to enjoy their free time alone because they feel tired after meeting and talking with many people in their jobs. Many neologisms have been created for the activities that are traditionally done with others and are now done alone. Hon-bap (eating alone), hon-sul (drinking alone), hon-haeng (travelling alone) etc are enjoyed by many single consumers. By spending time alone, single consumers have the freedom to do whatever they want and they are able to heal themselves. © Euromonitor International 36 44% More single of survey participants prefer to live alone than to live with others Source: Euromonitor Consumer Survey consumers than senior consumers will be seen in 2035 Source: Euromonitor Passport SPENDING TIME ALONE
  37. 37. Customised services such as foodservice and entertainment for single consumers are on the rise © Euromonitor International 37 Lotte Hotels & Resorts Ssaum Lotte Hotels & Resorts provides a package for single consumers called ‘Nana Land’, where the customer can enjoy room service, spa services, a massage etc alone. This package is only for one person. Source: https://www.lottehotel.com/ Restaurant brand Ssaum targets single customers and provides single-serving food that is normally ordered by more than two people. Started in 2017, Ssaum has more than 90 outlets across the country. Source: https://www.ssaum.co.kr/ LONER LIFESTYLE
  38. 38. More products for singles are required as they have become the largest consumer group Single consumers need products and services only for themselves. They prefer small and practical products that can be used by a single person such as compact furniture and electronic appliances. They have more money to spend on themselves so they do not hesitate to spend on leisure, hobbies and self-development. They are willing to purchase expensive products and services that are rational and worth their value. It is important for Finnish brands to understand the characteristics of single consumers as they represent the largest consumer group. © Euromonitor International 38 17%Increase in the number of one- bedroom homes over the 2012- 2017 period Source: South Korea National Statistics SOLO ECONOMY 60%of survey participants like to shop when they are alone Source: Euromonitor Consumer Survey
  39. 39. Companies are focusing on customised products such as housewares, home appliances and furniture for single consumers © Euromonitor International 39 E-Mart Casamia E-Mart’s electronic appliance brand Electroman launched 10 appliances including a rice cooker, ramen pot, sandwich maker etc. A representative product, the ramen pot, sold more than 3,000 units per month. Source: http://emart.ssg.com/specialStore/electromart2/ Furniture brand Casamia launched a furniture series called ‘basic series’ that is compact, has minimal functions and is simply designed to fulfill the needs of single-person households. Source: https://www.casamiashop.com/ LONER LIFESTYLE
  40. 40. Self-esteem and self-attachment are strong among single consumers As single consumers do not have a spouse or family to depend on, they need to depend on themselves to overcome any struggle in their daily lives. In order to live well, their desire for self-esteem and self-attachment is strong and they are not afraid to express how they feel and what they like. They look for unique products that fit their lifestyles, especially for their looks. Beauty and fashion brands are launching products that can be customised by consumers, and apparel brands are launching personalised products that fit an individual’s body size. © Euromonitor International 40 58%of single survey participants spend their days off staying at home Source: Euromonitor Consumer Survey BEING MYSELF Personal Style is the #1 factor when buying apparel, accessories and footwear among survey participants Source: Euromonitor Consumer Survey
  41. 41. Customised and personalised products and services such as beauty and personal care are on the rise © Euromonitor International 41 Etude House Woongjin Coway Etude House launched exclusive outlets of its ‘Color Factory’ where customers can receive one-on-one lip color consulting from a lip artist and can choose from one of 240 colors and lipstick cases to create a personalised lipstick. Source: https://www.etudehouse.com/kr/ko/main Water purifier brand Woongjin Coway launched a ‘watermap service’ which analyses the water quality of each household based on the residence’s area, building age, water source etc, and provides an appropriate filter. Source: https://www.cowayrentalcox.co.kr/ LONER LIFESTYLE
  42. 42. CONNECTED CONSUMERS © Euromonitor International 42 South Korea is one of the leading countries in the world in information technology. Everyday activities such as shopping, listening to music, watching videos and ordering food are available with just a few taps on a smartphone. Consumers share knowledge about these products and services through the internet in real time. This connectivity has redistributed power. Consumers are given more of a megaphone in any business transaction, and businesses now must listen and acknowledge what consumers say more carefully and quickly in order to be successful.
  43. 43. The internet is integral in the daily life of South Korean consumers © Euromonitor International 43 High internet usage What is it? Advancement of IT 89%of female consumers prefer buying clothes in their style instead of following fashion trends Source: Euromonitor Consumer Survey South Korea’s information technology level is one of the highest in the world. South Korea was the first country to introduce a 5G network, and Samsung – one of the largest South Korean companies – applied for the greatest number of patents related to the Internet of Things. Social media boom 96%of internet users use an instant messaging app Source: Ministry of Science and ICT South Koreans are some of the most active social media users in the world. In addition to world-recognised social media brands such as YouTube, Facebook, Instagram and Twitter, South Koreans are intensely loyal to homegrown social media sites such as Kakaotalk (an instant messaging app), Melon (a music streaming app) and Naver Band (a private group sharing app). 99.9%of the population aged 10-39 uses the internet Source: Ministry of Science and ICT South Korea has one of the leading IT infrastructures in the world. According to the Ministry of Science and ICT, the internet usage rate in South Korea reached 91.5% of the total population in 2018. In addition, 95% of the total population owns a mobile phone. CONNECTED CONSUMERS
  44. 44. INTERNET OF EVERYTHING Growing connectivity is fuelling demand for social engagement and instant rewards © Euromonitor International 44 DIGITAL LIFE SELL-SUMER The internet has not only connected people with people, but it has also connected people with objects. This greater connectivity enables companies to adopt service-oriented business models, offering remote monitoring. It also gives companies detail in terms of what consumers are doing when and, likely, why. All daily activities are done via smartphones in South Korea. Consumers summon a taxi, book a flight, browse products, order food, listen to music, play a game, watch a film or chat with others using the internet. Smartphones let consumers execute these actions at any time and from anywhere. As social media is prevalent in South Korea, one-person media based on social media, such as YouTube, Facebook and Instagram, gained immense popularity. Now, one-person media has evolved into a one-person market, where consumers are also becoming sellers or ‘sell-sumers’. CONNECTED CONSUMERS
  45. 45. Consumers are always connected South Korea is one of the world’s most digitally connected countries. The Internet of Things (IoT) is adopted across industries, government and in consumers’ daily lives. From this connection of people to objects, South Korean companies are applying the IoT in various products from refrigerators to beds to meet consumers’ needs for convenience. Finnish companies need to incorporate this connection feature in order to gain a competitive edge over local companies. 45 99.9%of households have access to broadband internet Source: Ministry of Science and ICT INTERNET OF EVERYTHING 48%of survey participants are trying to make their homes smart homes by connecting appliances Source: Euromonitor Consumer Survey © Euromonitor International
  46. 46. Companies are focusing on digital innovation in housewares, home appliances and furniture products © Euromonitor International 46 Samsung Electronics Hanssem Furniture brand Hanssem, in a collaboration with Google, launched its ‘Smart Motion Bed’ which can be connected to beds and room lighting, air conditioners, air purifiers, etc. This bed also analyses sleep quality and hours, wakes the customer up with lighting and stops snoring by gently tilting the mattress up. Source: https://mall.hanssem.com/ Samsung Electronics’ refrigerator lineup ‘Smarthub 3.0’ is equipped with an AI screen that can be connected to home appliances such as smartphones, air conditioners, washing machines etc to control and monitor these appliances. Furthermore, customers can see a personalised schedule, order groceries, manage the expiration date of groceries, watch TV and listen to music through this system. Source: https://www.samsung.com/sec/refrigerators/ CONNECTED CONSUMERS
  47. 47. Consumers are sharing more information than ever The internet not only provides the convenience of purchasing items anytime and anywhere, but it also provides detailed and instant reviews of products and services for consumers to consider. Consumers are more demanding than ever as they have access to a great deal of knowledge, and even a small flaw in a product or service can earn viral publicity and become critical to a brand’s image. Finnish companies should be diligently aware of consumers’ demands or comments about their products and should react to them as soon as possible. © Euromonitor International 47 84% 87% of survey participants think that friends’ social media posts or mentions are influential when shopping Source: Euromonitor Consumer Survey of survey participants look at online reviews before making purchases Source: Euromonitor Consumer Survey DIGITAL LIFE
  48. 48. Online reviews are considered more credible and influence purchase decisions significantly © Euromonitor International 48 Hwahae Siksin Siksin is a restaurant recommendation app that rates restaurants from many sources such as real users’ reviews, online blog reviews, appearances on TV etc. Source: https://www.siksinhot.com/ Hwahae is a cosmetics-related app that provides product reviews according to skin type, age, skin troubles of real users, rankings of each category of cosmetics, tips from cosmetics experts and product ingredients. It also operates its own online marketplace. Source: https://www.hwahae.co.kr/ CONNECTED CONSUMERS
  49. 49. C2C commerce has become a mainstream retail channel in South Korea As social media gains in popularity, YouTubers and Instagram influencers are becoming as famous as traditional celebrities, and they are appearing on major media platforms such as TV and radio shows. Online retail platforms and digital payment methods have allowed these social media stars to sell their own products, which expedited the growth of the C2C market. Finnish brands should leverage this trend to market their products through famous social media stars that can influence consumers. © Euromonitor International 49 81% 64% of survey participants think that online influencers are influential when shopping Source: Euromonitor Consumer Survey of survey participants visit or update social networking sites at least once a week Source: Euromonitor Consumer Survey SELL-SUMERS
  50. 50. Easy internet access is enabling individuals to becoming sellers on online platforms © Euromonitor International 50 Ne-On Naver Smartstore Naver Smartstore is a blog-type online mall platform that offers individuals without a business licence the possibility to open an online store. It combines the advantages of a blog, where customers can follow and gather information, and a mall, where they can make purchases. Source: https://sell.smartstore.naver.com/ Retail brand Lotte Shopping opened the shopping platform Ne-On, which sells lifestyle products by more than 100 famous influencers. Influencers focus on sharing product information and sales while Lotte Shopping takes care of delivery and customer complaints. Source: https://www.ne-on.kr/main/main.asp CONNECTED CONSUMERS
  51. 51. Healthy Living © Euromonitor International 51 Urbanisation has been driving an awareness of healthy lifestyles in South Korea. Urban consumers lead busy lifestyles and contend with pollution that is directly related to consumers’ health. Recently, South Korean lifestyles became much healthier in the way of food, IT and other industries. As healthy living changed from a focus on treatment to prevention, self-beauty care products dominate major retail channels such as home shopping and online/ offline markets in South Korea. Additionally, people would like to allocate time to refresh themselves and take care of their mental well-being by visiting temples or cultural spots or participating in unusual and special events such as joining a meditation programme at a museum located in mountainous rural area.
  52. 52. Digital tools have not only empowered consumers with more information but have also focused on prevention © Euromonitor International 52 Digitalisation What is it? Desiring healthy life 71%of survey participants are willing to participate in stress-reduction activities Source: Euromonitor Consumer Survey Although young people used to prefer fast food, they are becoming more health-conscious and are changing their food consumption habits and joining stress-relief activities. According to government working hour regulations, which advise that employees do not exceed 52 working hours per week, South Korean workers have a chance to balance their work and personal lives. Revealing mental disorders 29%of survey participants prefer to use time for themselves Source: Euromonitor Consumer Survey Since many celebrities in South Korea have confessed their mental health conditions such as depression/ panic disorders in public channels, people consider that mental health patients no longer need to hide and pretend to be OK. Currently, people do not hesitate to drop by mental health clinics or join programmes that help people overcome mental health challenges. 77%increase in browsing the internet compared to 2016 Source: Euromonitor Passport Due to the high internet usage in South Korea, people are familiar with obtaining self-care product information and general healthcare knowledge from the internet. Through personal reviews such as videos or online journals, people provide and receive experience-oriented reviews in digital communities which represent convenient online platforms. HEALTHY LIVING
  53. 53. SELF-HEALTHCARE Due to higher awareness and changing lifestyles, urbanised consumers seek healthier choices © Euromonitor International 53 FREE FROM AND CLEAN LABELS MENTAL WELL-BEING South Korea is a representative urbanised nation among OECD countries. The urbanisation leads to less efficient lifestyles due to time lost in daily traffic jams and busy commutes. People tend to take care of their health by themselves with self- medication, self-beauty and self- diagnosis products and services in order to prevent the side effects of urbanisation. Thus, more professional self-healthcare products/ services have recently been launched and have even boomed in South Korea. As consumers’ awareness of health concerns has advanced, health-related industries’ worth is already more than USD165 billion globally. Consumers want ‘free from and clean’ labels not only because of environmental concerns but also due to their health responsibilities. South Korean consumers as well as consumers the world over desire to be healthier and not to consume artificial ingredients including sweeteners or chemical condiments. This encourages the free from and clean label. Recognition of the importance of health to both spiritual and physical well-being has soared in recent years. As a result, wellness lifestyles have received more attention as self-care methods are shared for food, activities and events etc. Even digital-friendly generations want to participate in mental relaxation programmes at places such as temples or museums located in the mountains. Additionally, for mental healthcare, the South Korean government has endeavoured to hold regular therapy classes with professional experts at major city centres. HEALTHY LIVING
  54. 54. 54© Euromonitor International 68% 173% of survey participants actively browse the internet for health information and help with self-diagnosis Source: Euromonitor Consumer Survey increase in electric facial cleansers from 2013 to 2018 Source: Euromonitor Passport Consumers are becoming health experts South Koreans are now pursuing a more preventive approach to health rather than an approach based on treatments by caring for their health by themselves. With internet technology that provides professional medical information, applications that monitor calorie intake, heart rate, distance walked/ ran etc, and devices that prevent diseases, consumers are now acting somewhat as doctors themselves. SELF-HEALTHCARE
  55. 55. Self-beauty care products are becoming more popular among South Korean consumers © Euromonitor International 55 LG Electronics: Pra.L Lululab: Lumini Lumini examines a skin condition from the inner skin to its surface and divides it into six different categories: wrinkles, pigmentation, redness, pores, sebum and acne. Based on an AI technological application, Lumini finds suitable products and services for customers who took a photo with the machine. Source: http://www.lulu-lab.com/en/ Pra.L is known as a derma LED mask from LG Electronics. The product’s 120 LEDs thoroughly take care of the owner’s skin internally and help improve skin tone and elasticity simultaneously. With word-of-mouth referrals, aggressive advertising and celebrity endorsements, the revenue of this product increased by 138% in 2018 compared to 2017. Source: https://www.lge.co.kr/lgekor/product/accessory/ HEALTHY LIVING
  56. 56. 56 FREE FROM AND CLEAN LABELS © Euromonitor International Only 2% 52% of survey participants do not prefer organic products Source: Euromonitor Consumer Survey of survey participants prefer food that has limited or no artificial ingredients Source: Euromonitor Consumer Survey Food consumption patterns have changed in South Korea Concerns about unsafe ingredients have been growing in South Korea for years due to many food-related incidents. Nowadays, South Koreans not only care about their health but they are also concerned about the environment as well. Sugar-free, lactose-free and GMO-free products are recognised as healthier choices, and consuming clean-label products is perceived as ethical consumption. Although this trend has developed recently and is emerging slowly, Finnish companies should adopt this trend to cater to this consumer segment.
  57. 57. Products with healthy ingredients are gaining traction in South Korea © Euromonitor International 57 Seoul Milk Antme’s Food People try to eat healthy food even for snacks. Moreover, consumers consider not only the ingredients in snacks but also their taste. Consequently, grain snacks, which have healthy ingredients and a nutty flavour, were introduced on the retail market a few years ago. For example, crispy rolls sell very well regardless of consumers’ ages. Source: https://www.crispy-grain.com/ Seoul Milk, one of the major local dairy companies, is trying to expand its market share and cater to customer requests. As a result, the firm has enlarged product lines from normal milk to (less) skimmed milk, lactose-free and fat-free milk. Source: https://www.seoulmilk.co.kr/ HEALTHY LIVING
  58. 58. Mental well-being is as important as physical wellness The recent well-being trend in South Korea was focused on improving physical health. However, consumers are now turning their attention to their mental health as well. As living expenses are increasing rapidly and the employment rate is very low, young South Koreans are more stressed than ever. Money and time spent on stress relief activities such as entertainment, hobbies and travelling are increasing year by year, and mental health-related neologisms like ‘small but certain happiness’ and ‘work-life balance’ have been created. 58 MENTAL WELL-BEING © Euromonitor International 66% 94% of survey participants spend at least an hour per day on activities intended to reduce stress Source: Euromonitor Consumer Survey Increase in the number of tourists who travelled to foreign countries from 2013 to 2018 Source: South Korea National Statistics
  59. 59. Consumers visit peaceful places away to heal their minds © Euromonitor International 59 Museum San Temple Stay A temple stay is a very popular activity for the 20 to 39 years age group. By staying at a temple, people can reduce distracting thoughts, attend courses and eat very natural, vegetarian food during their meals. In fact, these days, foreigners who visit South Korea want to experience this activity. Source: https://blog.naver.com/1amso0/110176199452 Museum San is located on a mountain near Kangwon District in South Korea. One vital characteristic of the museum is that it has a meditation hall and garden paths outside the museum building. While strolling the gardens, people can relax away from ordinary life. Additionally, the site offers regular meditation courses. With the programme, people can find mental well-being benefits at the museum. Source: https://www.museumsan.org/ HEALTHY LIVING
  60. 60. ETHICAL LIVING © Euromonitor International 60 As the consciousness regarding the environment and society is rising in South Korea, neologisms such as ‘kind consumption’ and ‘ethical consumption’ have been created. This is directly linked to ethical consumerism. Consumers expect that the purchases support causes they believe in and help to sustain the environment. Online popularisation is a key factor driving the trend of ethical living for South Koreans. A high penetration rate of smartphones guides engagement of ‘kind consumption’ by recognising and sharing issues raised by companies, which in turn builds up customers’ awareness of products and brand images.
  61. 61. Digitalised daily life contributes to a new awareness of ethical living 61 Publicising environmental issues Digitalised daily life Only 28%of survey participants have bought ethical products and they want to buy more Source: Euromonitor Consumer Survey Thanks to digitalised daily life, people are able to share/ adapt any issues without investing much time. If a company is facing an issue, it might spread its news within its online communities such as Twitter, Facebook or Instagram and it won’t take more time to share those subjects. Additionally, instant messaging apps help in distributing topics to relatives, friends and colleagues. If a company starts to organise eco- friendly events, it might utilise this as a marketing feature because it will contribute to consumers’ positive attention towards the company. Furthermore, the government aims to regulate corporate social responsibility by monitoring companies’ involvement in environmental issues. Social responsibility is no longer an optional attribute for public organisations in South Korea. What is it? Respecting others’ tastes By understanding others’ tastes, many new products have emerged. The beauty industry is always focused on female consumers, but representative genderless cosmetic brands have appeared in South Korea. Moreover, many guys are not embarrassed to use makeup on their faces or bodies. Nowadays, it is hard to find out somebody points out them as a problematic people in South Korea society. of are interested in environmental issues Source: Ministry of Environment 54%of consumers are interested in CSR activities done by corporates Source: Korea Social Welfare Association 75% © Euromonitor International ETHICAL LIVING
  62. 62. WASTE NOT, WANT NOT Advancement of ethical consumerism shifts business models © Euromonitor International 62 ANIMAL WELFARE GENDER NEUTRALITY The words ‘reduce, reuse, recycle’ are highlighted in South Korea. Since pollution issues are worsening every year, the government and corporations abide by various regulations and also conduct awareness campaigns. The trend now in South Korea favours ethical operations. When South Korean consumers drop by a retail shop to buy something or deliberate about a purchase, they are inclined to reconsider products depending on a company’s ethics if there are no significant quality issues between brands. People in South Korea no longer treat animals as just animals. With the humane treatment of animals in focus, there are now places such as cafés, accommodations and pet goods shops etc that have emerged for animals or these facilities may be used with animals. This could be interpreted to mean that the status of pets in South Korean society has soared compared to past years. The traditional borderline of gender distinctions has been broken in South Korea. The concept got its start in the early 2000s in the country, but it is no longer ‘new’ or ‘unique’ for those who are aged 10-50. Gender neutrality aims to get rid of gender-specific roles between men and women themselves. By expanding these perceptions, fashion as well as beauty businesses have been impacted, and have felt the effect on their business models, muses and even targeted customers. ETHICAL LIVING
  63. 63. Commercial companies try to focus on environmental activities Awareness of environmentally friendly practices is increasing in South Korea. Regulations such as banning plastic cups for in-store customers in all cafés and banning single-use plastic bags at grocery stores are affecting consumers as well as companies. Companies are starting to organise eco-friendly events and to modify their product packaging in a ‘green’ way, as this is linked by consumers to a positive brand image. Consumers are able to recognise and be reminded of their environmental responsibilities. 63 WASTE NOT, WANT NOT © Euromonitor International 70% 59% of survey participants try to have a positive impact on the environment Source: Euromonitor Consumer Survey of survey participants buy products from environmentally friendly companies Source: Euromonitor Consumer Survey
  64. 64. Publicising environmental issues with civil institutions / major companies © Euromonitor International 64 Lotte Group Pulmuone Lotte Group, a major company in South Korea, started a campaign regarding protection of the environment with all Lotte affiliates. A campaign termed ‘plastic-free challenge’ is technically encouraging the usage of mugs or tumblers rather than disposable cups. Source: https://www.lotte.com/ To encourage the separation of waste materials, Pulmuone has begun to utilise double-perforated labels. This helps to isolate PET bottles and labels for recycling purposes. Source: https://www.pulmuone.kr/ ETHICAL LIVING
  65. 65. Formulating a ‘pet economy’ in commercial markets towards the awareness of pet welfare The perception of animals has changed in South Korea. People who live with animals nowadays recognise their pets as members of the family. This had led to a new term and market – ‘pet-economy’ – which means the economy is formulated by pets. Several first-tier banks released credit/debit cards targeting those who have pets. Going one step forward, commercial cosmetics brands pledge not to do experiments on animals for their products. Moreover, several South Korean cosmetics brands recently obtained the ‘Vegan Action: Contains no animal products and is not tested on animals' mark from the United States. 65 ANIMAL WELFARE © Euromonitor International 68% Only 20% Increase in pet care market size from 2013 to 2018 Source: Euromonitor Passport Of survey participants do not consider animal welfare a factor when purchasing products Source: Euromonitor Consumer Survey
  66. 66. Animal-friendly commodities consistently roll out in South Korea © Euromonitor International 66 Eco-friendly cosmetics Industrial Bank of Korea The catchphrase of a cosmetics brand called Beyond from LG Household & Healthy Life is 'Good Cosmetics', which implies that it opposes animal experimentation. Additionally, other brands from Amore Cosmetics have acquired the ‘Vegan Action: Contains no animal products and is not tested on animals’ mark. Source: http://beyond.lgbeautymall.com/brand/ There is a credit card for those who live with pets. One of the outstanding benefits is that card users get 10% off when their pets stop by hospitals or pet-related places. Moreover, a card user’s pet can be featured in a picture on the card background. Source: https://www.ibk.co.kr/ ETHICAL LIVING
  67. 67. Traditional gender roles are disappearing in South Korea Women cook, do laundry and take care of their children while men work to earn money. These traditional gender roles and interests are disappearing in South Korea as women take on a larger role in society than they did in the past and diversity is embraced by consumers. Public TV shows featuring a father taking care of his children, makeup products for men and genderless apparel and accessories have become popular in South Korea. Gender discrimination is perceived as rude and uncivilised, and the gender neutrality trend is currently one of the most important social ethics in South Korea. 67 GENDER NEUTRALITY © Euromonitor International 64% 54% of survey participants purchase products from companies that support causes Source: Euromonitor Consumer Survey of male survey participants purchase beauty and personal care items through online retailers Source: Euromonitor Consumer Survey
  68. 68. New products try to erase gender distinctions © Euromonitor International 68 Laka Seoul Fashion Week Gender-neutral makeup brand LAKA from South Korea has begun to sell genderless lipsticks. Regardless of gender, customers may choose any colours from among 12 kinds of products at the shop. According to a representative of the company, 20%-30% of revenue was derived from male consumers in June 2019. Source: http://laka.co.kr/ During the 2017 Hera Seoul Fashion Week at DDP in Seoul, a seminar was held to discuss the theme ‘Fashion in the Age of Genderless’ with four renowned fashion insiders. Source: https://www.seoulfashionweek.org/ ETHICAL LIVING
  69. 69. Survey Findings Appendix © Euromonitor International 69
  70. 70. 1 2 3 Experience, convenience and delivery are three key factors in shopping © Euromonitor International 70 • 54% of survey participants aged 18-35 think that technology and the digital experience are the most important factors when shopping in a store, while only 43% of consumers aged 46 and older think the same. • The consumer group that prioritises technology and the digital experience is males aged 26-35 with 61%. Experiential Shopping • 77% of survey participants across all age groups are actively looking for online platforms that make daily life more comfortable. • The number one reason for consumers participated in survey to use online delivery platforms is that they can order anytime, which took 70%. Convenient Shopping • 94% of survey participants use online delivery services at least once a week, and 29% of survey participants use it at least three times per week. • 69% of survey participants use online malls to order apparel, accessories and footwear, while 59% order food and beverages as well as beauty and personal care products. • 42% of survey participants use online delivery platforms because they can get products anywhere. Delivery from Anytime to Anywhere SHOPPING REINVENTED Source: Euromonitor Consumer Survey
  71. 71. 1 2 3 Lone consumers buy products for themselves © Euromonitor International 71 • Only 24% of survey participants do not agree that living alone is better than living with others, and 55% of survey participants aged 18-35 prefer to live alone. • 60% of survey participants shop when they are alone. Spending Time Alone • 22% of survey participants who live alone mostly buy furniture and food or beverages in just the amount that they need, which is the most selected factor. • 94% of survey participants who live alone use online delivery services at least once a week, and more than 54% of these survey participants buy food/ beverages, apparel, accessories, footwear, beauty and personal care products from online malls. Solo Economy • 28% of survey participants shop for apparel, accessories and footwear that fit their personal style or lifestyle, which is the number one factor in their decisions. • When shopping for apparel, accessories and footwear, 20% of survey participants who live alone look for the products that fit their personal style, which is the second most-selected shopping factor. Being Myself LONER LIFESTYLE Source: Euromonitor Consumer Survey
  72. 72. 1 2 3 Younger generations are more influenced by digital consumers © Euromonitor International 72 • 48% of survey participants are actively finding ways to connect all home appliances through mobile devices. • 58% of survey participants aged 26-35 are actively finding ways to connect all home appliances through mobile devices. Internet of Everything • 54% of survey participants aged 18-35 engage on social media when they are alone. • 78% of survey participants think that online reviews are the most influential when purchasing certain products or services. Digital Life • 63% of survey participants think that recommendations from SNS advertisements are useful when shopping. • 36% of survey participants aged 18-35 think that trends on social media are the most influential factor when shopping, while only 23% of those aged 36 and older do. Sell-sumers CONNECTED CONSUMERS Source: Euromonitor Consumer Survey
  73. 73. 1 2 3 Consumers are self-caring for their physical and mental health © Euromonitor International 73 • 52% of survey participants are using online applications to track calorie intake and physical activities like running and exercise. • 68% of survey participants actively browse the internet about health information (exercise, healthy diet, meditation etc) and self-diagnosis (diseases, signs, treatments, precautions etc). Self-healthcare • 50% of survey participants prefer to buy organic and natural products since they do not contain synthetic or artificial ingredients. • 59% of survey participants buy products and services from companies which have a clear, committed environmental policy and focus on sustainability. Free From and Clean Label • Only 26% of survey participants do not participate in activities (e.g. yoga, meditation, hobbies) to enhance their mental and spiritual health. • 66% of survey participants spend at least an hour a day in activities (sports, music, driving etc) which help to reduce stress levels. Mental Well-being HEALTHY LIVING Source: Euromonitor Consumer Survey
  74. 74. 1 2 3 Awareness of ethical living is increasing © Euromonitor International 74 • 50% of survey participants buy products and services from companies which have a clear, committed environmental policy and focus on sustainability. • 68% of survey participants either donate their used products, sell them in secondhand markets, recycle them or use them for alternate purposes. Waste Not, Want Not • 44% of survey participants agree or strongly agree that they consider animal welfare a factor when purchasing products or services. • 50% of female survey participants agree or strongly agree that they consider animal welfare when purchasing products or services. Animal Welfare • 54% of male survey participants buy beauty and personal care products through online retailers. • 28% of male survey participants aged 18-45 like to cook when they are alone, while only 17% of male survey participants aged 45 and older like to cook. Gender Neutrality ETHICAL LIVING Source: Euromonitor Consumer Survey
  75. 75. Shopping Reinvented Loner Lifestyle © Euromonitor International 75Connected Consumers 49% of survey participants think the digital experience is the most important feature 94% of survey participants use online delivery services at least once a week 44% of survey participants prefer living alone over living with others Personal Style is the #1 factor considered when purchasing apparel, accessories and footwear 87% of survey participants consider online reviews before making purchases 77% of survey participants are actively searching for convenient online platforms Source: Euromonitor Consumer Survey Source: Euromonitor Consumer Survey Source: Euromonitor Consumer Survey
  76. 76. © Euromonitor International 76 Healthy Living 68% of survey participants browse the internet and apps for health information and help with self- diagnosis Ethical Living 59% of survey participants buy products from an ethical company 66% of survey participants spend at least an hour a day on activities intended to reduce stress 70% of survey participants try to positively impact the environment by their daily activity Source: Euromonitor Consumer Survey Source: Euromonitor Consumer Survey
  77. 77. CONTACT DETAILS Jaekwan Park Associate Consultant Tel: +82 (2) 6123 0213 jaekwan.park@euromonitor.com Vivek Sharma Senior Consultant Tel: +65 6429 0590 vivek.kumar@euromonitor.com Zubi Woo Program Coordinator Business Finland South Korea Trade Center Tel: +82 2 725 2076 zubi.woo@businessfinland.fi Oleg Degtiariov Senior Business Development, Consulting Tel: +370 5 243 1577 oleg.degtiariov@euromonitor.com Mangirdas Ciocys Senior Account Manager Tel: +370 5 243 1577 mangirdas.ciocys@euromonitor.com

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