"In the Post-Corona Era, Strategies Must Consider Digital Tech and Social Value"

Samjong KPMG Presents 5 New Consumption Trends Amid COVID-19

[Asia Economy Reporter Minji Lee] As new consumption trends are emerging due to the novel coronavirus infection (COVID-19), an analysis has been raised that companies need to redesign their business strategies considering digital technology and social values.

On the 14th, the report "Changes in Consumption Trends Due to COVID-19" published by Samjong KPMG explained that COVID-19 is affecting all areas of consumers' clothing, food, and housing, leading to lifestyle changes. Accordingly, it analyzed that new consumption trends such as ▲untact ▲homeconomy ▲emphasis on fundamental values ▲anxiety care ▲egoism are being observed across 15 major industry sectors including distribution, finance, and gaming.

As people avoid face-to-face contact due to COVID-19, 'untact' consumption through non-face-to-face methods is spreading across most industries. With increased time spent at home, consumption related to various clothing, food, housing lifestyles, and leisure activities within the home, called 'homeconomy (Home+Economy),' is expanding.

Since the spread of COVID-19, the phenomenon of valuing fundamental human values such as health, happiness, family, and safety has strengthened, and a consumption pattern called 'anxiety care,' which soothes fears about safety and economic recession, has also appeared. As face-to-face time with others decreases and people avoid being in the same space with unspecified many, a new consumption trend of self-centered consumption for oneself called 'egoism' has also been observed.

In the distribution industry, in the first quarter of 2020, purchases of items that were not previously bought online, such as automobiles (61.7%) and fresh food (46.6%), increased compared to the same month of the previous year, and the influence of the 40s and 50s consumer group in the online market expanded. The 20s and 30s consumer group showed high interest in 'live commerce' based on real-time broadcasting. Additionally, due to the prolonged COVID-19 situation, the use of video media services such as watching OTT (over-the-top online video services) at home, enjoying online performances, and playing mobile games has significantly increased.

Accordingly, Samjong KPMG suggested that domestic companies should establish strategies based on ▲digital transformation and untact business ▲consumer understanding based on data analysis (D&A) ▲digital customer experience analysis and business model development ▲social value creation based on stakeholder partnering to respond to new consumption trends caused by COVID-19.

Dongseok Lee, Strategy Consulting Leader (Executive Director) at Samjong KPMG, said, "As businesses utilizing digital technologies such as untact are emerging due to COVID-19, companies need to establish digital tech utilization strategies optimized for their business to capture digital new business opportunities," adding, "They should analyze multifaceted data related to industries and consumers for business use and prepare new business strategies based on precise analysis of digital customer experiences."

He continued, "After COVID-19, consumers are placing more emphasis on fundamentally important values, increasing interest in companies' social roles and ESG (environment, social, governance)," emphasizing, "Companies should implement strategies pursuing 'True Value' where the overall value of the company increases by considering both financial value and social value together."