KPC identifies notable trends in media, fashion, food and cosmetics
By Kim Bo-eun
The Korea Productivity Center (KPC) projects customer satisfaction will grow for media streaming platforms as competition intensifies among companies offering these services to attract subscribers, as these have become a key source of entertainment amid the COVID-19 pandemic.
The NCSI index measuring companies' customer satisfaction levels added over-the-top (OTT) media service providers and music streaming companies this year, given users of these services has grown. The KPC publishes the index on an annual basis to help enhance the competitiveness of local companies.
The KPC expects customer satisfaction levels to rise for OTT services, as competition heats up among companies to offer better quality services at lower subscription rates to secure greater market share, given high consumer interest.
The entry of global OTT players is forecasted to further boost competition among platforms to offer better services for consumers. Disney Plus and Apple TV+ launched their service here in recent months, and HBO Max is projected to make its debut in the local market later this year.
Internet protocol TV (IPTV) service providers saw the value of their services rise in the past two years due to the pandemic, but the KPC noted they could lose their subscribers to OTT platforms if they do not offer greater differentiated value.
As for companies in the fashion industry, the KPC has identified the growing demand from the MZ generation ― millennials and Generation Z members in their 20s and 30s ― for eco-friendly products and services. Clothing manufacturers are urged to meet these demands and also pay greater attention to online retail and marketing, based on the digital transition, to keep up with customer needs.
In the food industry, the KPC stated the extended pandemic has led to the growth in demand of ready-made meals, as people work and take classes at home. It also identified live online shows as a rising sales medium, and food companies' collaboration with entirely different sectors as a key trend.
Food companies are advised to reflect consumer needs stemming from the growth of single-person households, such as small packaged amounts and easy-to-prepare meal kits.
In addition, they need to keep in line with the well-being trend in the food and beverage industry, which is largely aimed at reducing sodium and sugar in food products, the KPC said.
The cosmetics market has also seen changes amid the pandemic, with marketing activity growing in the form of online trials. Loreal Group integrated ModiFace virtual reality technology on its Instagram shopping platform to offer product testing simulation services. Estee Lauder provided users of the interactive messaging system Snapchat the opportunity to try out its foundation products virtually.
The rise of dermacosmetics is another notable trend. This refers to specialized skin care products that are produced in consultation with dermatologists. Demand has grown as wearing masks to prevent the spread of COVID-19 has given rise to various skin problems. Local cosmetics giant AmorePacific recently integrated its affiliate Aestura for a greater focus on derma products. LG Household & Health Care acquired CNP Cosmetics, in addition to Carezone and DermaLift for the same purpose.
The cosmetics industry is also focusing on microbiomes. Microbiome skin care refers to removing harmful bacteria while adding helpful bacteria to improve the skin. Loreal, as well as AmorePacific and LG have launched such products in recent years.
By Kim Bo-eun
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| Getty Images Bank |
The NCSI index measuring companies' customer satisfaction levels added over-the-top (OTT) media service providers and music streaming companies this year, given users of these services has grown. The KPC publishes the index on an annual basis to help enhance the competitiveness of local companies.
The KPC expects customer satisfaction levels to rise for OTT services, as competition heats up among companies to offer better quality services at lower subscription rates to secure greater market share, given high consumer interest.
The entry of global OTT players is forecasted to further boost competition among platforms to offer better services for consumers. Disney Plus and Apple TV+ launched their service here in recent months, and HBO Max is projected to make its debut in the local market later this year.
Internet protocol TV (IPTV) service providers saw the value of their services rise in the past two years due to the pandemic, but the KPC noted they could lose their subscribers to OTT platforms if they do not offer greater differentiated value.
As for companies in the fashion industry, the KPC has identified the growing demand from the MZ generation ― millennials and Generation Z members in their 20s and 30s ― for eco-friendly products and services. Clothing manufacturers are urged to meet these demands and also pay greater attention to online retail and marketing, based on the digital transition, to keep up with customer needs.
In the food industry, the KPC stated the extended pandemic has led to the growth in demand of ready-made meals, as people work and take classes at home. It also identified live online shows as a rising sales medium, and food companies' collaboration with entirely different sectors as a key trend.
Food companies are advised to reflect consumer needs stemming from the growth of single-person households, such as small packaged amounts and easy-to-prepare meal kits.
In addition, they need to keep in line with the well-being trend in the food and beverage industry, which is largely aimed at reducing sodium and sugar in food products, the KPC said.
The cosmetics market has also seen changes amid the pandemic, with marketing activity growing in the form of online trials. Loreal Group integrated ModiFace virtual reality technology on its Instagram shopping platform to offer product testing simulation services. Estee Lauder provided users of the interactive messaging system Snapchat the opportunity to try out its foundation products virtually.
The rise of dermacosmetics is another notable trend. This refers to specialized skin care products that are produced in consultation with dermatologists. Demand has grown as wearing masks to prevent the spread of COVID-19 has given rise to various skin problems. Local cosmetics giant AmorePacific recently integrated its affiliate Aestura for a greater focus on derma products. LG Household & Health Care acquired CNP Cosmetics, in addition to Carezone and DermaLift for the same purpose.
The cosmetics industry is also focusing on microbiomes. Microbiome skin care refers to removing harmful bacteria while adding helpful bacteria to improve the skin. Loreal, as well as AmorePacific and LG have launched such products in recent years.
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