[Viewpoint] The Era of 'Big Blur' Has Arrived

The 'Big Blur' Era Has Arrived
Boundaries Between Industries, Online and Offline, and Daily Life Are Dissolving

As the Fourth Industrial Revolution gains momentum, the phenomenon of 'Big Blur' is accelerating in business and life. 'Blur' refers to the fading of boundaries. The lines between humans and machines (artificial intelligence·AI), manufacturing and services, producers and consumers, the real and virtual worlds, and financial institutions and big tech companies are dissolving. Since the COVID-19 pandemic, big tech companies have made significant advances. As the core axis of industry shifts from a pipeline economy to a platform economy, we have now entered the era of Big Blur. How will we survive?

First, the boundary between home and workplace is becoming blurred. In many industries, 'remote work' is expected to become the new normal. An amazing era has begun where people take walks instead of commuting and do 'home training' instead of exercising at the gym. Vacations are also being replaced by 'virtual travel.' This change has given rise to a new buzzword, the 'homebody economy,' and a new cocoon lifestyle is becoming mainstream. The cocoon tribe, who enjoy solitude, are actively connected online but often live alone offline. The growth of single-person households and the gig economy are also linked to the Big Blur.

Second, the boundary between online and offline is fading. Last year, e-commerce accounted for about 30% of the Korean retail market, and now it is rapidly approaching 40%, one of the highest levels in the world. While Lotte Shopping, which operates about 700 stores domestically, has a market value of 3 trillion won, Coupang, which has no offline stores, is valued at 30 trillion won. Numbers that were once futuristic scenarios 30 years ago have already been realized. As services like O2O (online-to-offline) and O4O (online for offline) spread, big data-based big tech companies such as Amazon, Google, Naver, and Kakao are encroaching on the traditional retail industry. With the emergence of fintech (finance + technology) companies like Kakao Banking, big tech firms are entering the financial industry, blurring the lines between online and offline banking and disrupting the existing order.

Third, the boundaries between industries and sectors are fading. Cars are expected to evolve into autonomous vehicles, becoming more like electronic devices and media. Recently, the CEOs of Naver and Shinsegae met to discuss business, exemplifying the Big Blur phenomenon. Convenience stores are evolving into general stores by adding restaurants, coffee shops, and parcel pickup services. Starbucks has introduced Siren Order, enabling fintech functions as well. In 2018, Starbucks actually partnered with an Argentine bank to launch Coffee Bank, which has become a mid-sized bank with deposits nearing 3 trillion won.

In the era of Big Blur, survival requires abandoning old fixed ideas. Growth is possible only by connecting everything and accelerating the speed of thought. Adaptability and speed to overcome the shock of change are the greatest virtues. Although the technical start of the Fourth Industrial Revolution was delayed compared to the US and China, Koreans are currently evaluated as having world-class adaptability and business innovation. In the Big Blur era, let us expand the definition of the work we do and our core business to find new opportunities.