Disappearance of 'average consumer' to dominate 2023's trend

Kim Nan-do, a professor of consumer studies at Seoul National University, speaks during a press conference held to promote his latest book, "Trend Korea 2023," at a cafe in Seoul's Mapo District, Oct. 5. Courtesy of Miraebook Publishing

Best-selling author unveils consumer trend outlook in Korea for 2023

By Park Han-sol

The cover of "Trend Korea 2023" by Kim Nan-do et al. / Courtesy of Miraebook Publishing

The likelihood of a global recession is feared to grow throughout the rest of 2022, with the chief of the International Monetary Fund (IMF), Kristalina Georgieva, warning that the agency would issue downgrades to its growth projections for next year.

Painting a grim picture of the global economy during her speech on Thursday at Georgetown University in Washington, D.C., she noted that "any country can be thrown off course more easily and more often."

Korea, of course, is no exception.

Amid this looming predicament, Kim Nan-do, a professor of consumer studies at Seoul National University (SNU), and his team at the SNU Consumer Trend Research Center, have unveiled "Trend Korea 2023," an annual report released since 2008 that aims to offer companies insights into the country's changing economic and consumer trend.

"During this time when the risk of recession is rising, stressed-out individuals on a budget tend to resort to so-called 'small indulgences,' where they actively seek out products that are deemed to be most rewarding for them, while remaining frugal in other parts of their lives," Kim said during a recent press conference in Seoul's Mapo District, highlighting the need for businesses to be sharper than ever in identifying such trends.

Redistribution of 'average'

One of the keywords that characterizes the fundamental changes taking place throughout Korean society is what Kim calls the "redistribution of the average," where the conventionally accepted idea of the "average" or the "standard" as representative of the general population is becoming meaningless.

In a symmetrical bell-shaped curve that depicts a normal distribution, the average is recognized as the most frequent value ― and thus indicating the most typical characteristic of a particular market or a social group. But several factors are bringing a shift in that paradigm, rendering the average as insignificant, according to the professor.

One is the classic case of economic polarization, which has been further exacerbated by lingering effects of the COVID-19 pandemic as well as the Bank of Korea's continued interest rate hike. As the gap between the haves and the have-nots widens, the median is becoming more and more absent.

Another factor is multipolarization, an inherent feature of the increasingly individualized society. Here, every person shows a behavior pattern that is strikingly different from the next, making an attempt to calculate the average a pointless task.

Then, what does this trend of a disappearing average mean for businesses when it comes to setting their target audience?

"In lieu of mass marketing ― a strategy in which a company is concerned with appealing to the whole market with a single popular offer or product to reach the largest number of potential customers possible ― it's important to realign one's focus and set a specific market segment to target," Kim said.

Arrival of new office culture: 'Office Big Bang'

Another change further accelerated by the pandemic is the profound transformation of workplace culture.

Citing the Great Resignation, where workers voluntarily quit their jobs en masse, and "quiet quitting," in which employees choose not to hustle to climb the ladder and instead do the bare minimum required to maintain employment, the professor likened this sweeping shift to an "Office Big Bang." Employee loyalty is no longer a given in this era.

"The spread of the virus that led to a surge of telecommuting and the ban of 'hoesik' (almost mandatory after-work dinners) certainly served as an impetus for this change," he said. "Surprised at how it could be done, members of the organization then began to suspect the necessity of all the other workplace practices that used to be accepted without question."

Then, to retain skilled employees, competitive wages and welfare benefits are a must, but are ultimately of secondary importance, Kim added.

"Creating an environment that induces professional growth in workers should be prioritized in the end, where they feel that they are actually upskilling and gaining competency in their area."

"Trend Korea 2023" features eight other keywords that defines next year's trends, including "cherry-sumers," a portmanteau of "cherry pickers" and "consumers" that describes the increasingly popular consumer behavior among younger generations; an in-depth look into the lifestyle led by the "Generation Alpha," those born since the 2010s; the role of real spaces in the post-pandemic era as opposed to the virtual; and the need for "proactive technology" that can remediate problems and address customer needs even before the command is given.