[Jihye Choi's Trend] Offline Spaces in the Reopening Era... Only Those Filled with Fun Will Survive

The number of COVID-19 confirmed cases has noticeably decreased. Although we are not completely free from the risk of infectious diseases, the scenery on the streets is certainly changing. There are more cars on the roads, and major tourist spots are crowded with people. Spring festivals and summer festivals, which had been suspended, are also showing signs of recovery. “What will offline look like going forward?” This is one of the frequently asked questions at recent lectures. Behind this question lies the hope that offline sales might recover to pre-COVID levels. According to an analysis of payment amount big data by the app and retail analysis service WiseApp, since social distancing was lifted in April 2022, payment amounts for offline and outdoor activities such as travel, theaters, and airlines have significantly increased. In other words, the resumption of daily life is just around the corner. So, can offline spaces recover to their pre-COVID state? To conclude, not all spaces will recover. Only spaces that are not boring will be chosen by consumers.

The offline space trend has undergone many changes in the meantime. The success formulas that worked just over two years ago no longer work unconditionally. The way to create a space that is not boring is that the content contained within the space is as important as the space itself. Going further, the content must constantly be alive and moving. The space receiving the most attention in the reopening era is The Hyundai Seoul. The Hyundai Seoul opened on February 26, 2021, during a time when social distancing measures were being strengthened daily and people avoided crowded places. Nevertheless, it surpassed 800 billion KRW in sales within one year of opening. What is even more encouraging is that more than half of the consumers accounting for the sales were from the MZ generation. There are several reasons why such remarkable results were possible amid an unprecedented crisis, but one notable factor is that the brand replacement cycle in the food sector was set to every 3 to 4 months. This shows a strong will to reflect new trends.

The reason pop-up stores are popular is the same. They offer a special experience that can only be felt in that particular space. The Hyundai Seoul is also famous for its active operation of pop-up stores. There is a formal pop-up zone on basement level 2, and the indoor garden Sounds Forest on the 5th floor is also a preferred pop-up space for brands. Wonsoju, famous for Park Jae-beom soju, chose The Hyundai Seoul as the first place to unveil its product. Recently, a leisure platform company, Yanolja, created a resort-themed pop-up store that stimulates consumers’ travel desires and has become a popular spot for taking photos.

The recent frequent appearance of the “grocery store” concept can also be interpreted in a similar context. It reflects the characteristics of the MZ generation, who always want to find and experience fresh content in spaces. “Monday Morning Market” near Hyochang Park, “Munchies & Goodies” in Seongsu-dong, and “Bo Market,” which started on the first floor of Namsan Mansion, are currently popular grocery stores. The characteristic of these spaces is that they are never boring whenever you visit. This is because they are filled with items reflecting the owner’s taste and unique products that are hard to find in regular grocery stores. Monday Morning Market is a brand created by four friends working as a chef, space designer, and vintage collector, who describe their space as “a space full of interesting ingredients.”

Simmons’ introduction of a grocery store is ultimately to inject freshness and fun. The idea of a bed and a grocery store, which seem completely unrelated, naturally arouses curiosity and makes people want to visit. Kim Seong-jun, executive director in charge of Simmons Grocery Store, points out that offline spaces are changing their role to places where consumers experience the brand. Especially for brands like beds, which have long purchase cycles and find it difficult to frequently connect with consumers, having a space where consumers can be met regularly is important. The same applies to Yanolja mentioned earlier. As a platform company with only online contact points, it likely judged that consumers’ offline experience is important. That is why many brands are opening cafes and restaurants, engaging in so-called side activities offline.

In the endemic era, the success formula for offline spaces is clear. There must be a reason why consumers have to or cannot help but visit the space. It is complacent to expect offline to naturally revive just because COVID is over. Spaces must move like living organisms and be armed with freshness and fun. Sometimes, bold challenges into industries that our brand has never tried before are necessary. During the COVID period, online shopping achieved not only quantitative growth but also qualitative growth, and consumers became able to buy anything online. If you cannot find answers to the questions “Why should consumers come to our space?” and “What content unique to our space, which cannot be experienced elsewhere, do we have?” it will be difficult to ride the current reopening wave.

Choi Ji-hye, Research Fellow, Consumer Trend Analysis Center, Seoul National University