[Jihye Choi's Trend 2024] The YOLO Party Is Over... Now It's the Era of YONO

Thin Wallets of Millennials and Gen Z Amid High Inflation
The Rise of "You Only Need One" Consumption
Home-Cooked Meals Replace Dining Out and Delivery
Top Savings Method Among Gen Z
78% of Secondhand Clothing Users Are Millennials and Gen Z
Increase in Chuseok Gifts Under 30,000 Won This Year

Jihye Choi, Research Fellow at Seoul National University Consumer Trend Analysis Center

YOLO stands for ‘You Only Live Once’ and became a popular phrase after appearing in the 2011 song ‘The Motto’ by the famous American rapper Drake. Originally, Drake’s lyrics reflected contemplation on living a life without regrets, but later the media used YOLO to mean ‘enjoy life because you only live once.’ Rather than worrying about an uncertain future, YOLO emphasizes enjoying the present life, which for a time led to flex consumption trends, driving the popularity of hotel vacations and omakase dining.

However, recently, a shift in this consumption trend has been observed. People who once embraced YOLO are now advocating YONO. YONO stands for ‘You only need one,’ meaning that by purchasing only what is necessary, unnecessary consumption is reduced, encouraging frugal and practical spending. What does practical consumption look like these days? And why has YONO consumption emerged? Let’s explore the background of YONO consumption.

A representative phenomenon of YONO is saving. According to a survey conducted by the job platform ‘Alba Heaven’ among 537 Gen Z respondents about their preferred consumption styles, the top saving method was ‘solving meals with home-cooked food instead of dining out or ordering delivery’ (40.7%, multiple responses allowed). Following this trend, convenience store consumption is increasing. According to app analysis firms WiseApp, Retail, and Goods, in the first half of this year, the average monthly payment frequency per person in their 20s was highest at GS25 with 3.63 times. Excluding online shopping, convenience stores also had the highest average monthly payment amount. It is analyzed that the small portion sizes and cost-effective products at convenience stores meet the demand of young Koreans, who generally have lower incomes and many single-person households.

Korean buffet restaurants are also gaining attention. According to SomeTrend, from September 18 to October 17, 2023, online searches for ‘Korean buffet’ increased by 6.58% compared to the same period last year. Korean buffets generally cost between 8,000 and 10,000 won, which is considered cost-effective given that the average price of jajangmyeon (black bean noodles) has surpassed 7,000 won. For this reason, many office workers recently share recommendations for Korean buffet restaurants or even go on ‘Korean buffet expeditions.’

Money-saving tactics are also noteworthy. Due to high prices, consumers burdened by delivery fees try to save on delivery costs by meeting the minimum order amount. The problem is that meeting the minimum order amount often results in ordering too much food. Especially for single-person households, this means storing food in the refrigerator and eating it multiple times. The savior in this situation is ‘sauces.’ For example, if someone orders three sandwiches to meet the minimum amount, they might eat a basic sandwich on the first day, then enjoy a spicy sandwich with buldak sauce on the second day, and on the third day, mix cheongyang chili peppers with mayonnaise to make a cheongyang mayo sandwich. The sauce market is growing in response to this trend.

Secondhand clothing is also popular. According to the distribution industry and the secondhand trading platform ‘Bungaejangter,’ the paid transaction amount in the used fashion category in the first quarter of 2024 reached about 64 billion won, doubling compared to the same period last year and setting a record high. Notably, 78% of users are from the MZ generation. Due to inflation, clothing prices have risen significantly, so people seek relatively affordable clothes. Additionally, the recent popularity of 2000s styles such as ‘Y2K’ and ‘Grandma (Grandpa) core look’ among people in their 20s has led to a rapid rise in the vintage fashion market, where secondhand clothes are sold or remodeled.

Transportation expenses are also being cut boldly. According to an analysis by NongHyup Bank, taxi usage among people in their 20s and 30s decreased by 21% in the first half of 2023?2024. Compared to a roughly 3% decrease in other age groups during the same period, it is analyzed that this generation switched to other public transportation options instead of taxis. Regarding car purchases, the number of imported car purchases by people in their 20s and 30s decreased by 11% compared to 2023. Meanwhile, domestic car purchases increased by 34%, used car purchases by 29%, and rental car consumption surged by 258%. Overall, it appears that frugal consumption of transportation means is being pursued.

As expected, behind YONO consumption lies the economic situation of the 20s and 30s generation, whose wallets have become thinner. Inflation has lasted longer than expected, and amid employment instability, the consumption party that shouted flex and YOLO seems to be coming to an end. The average loan principal and interest repayment amount for household heads under 39 years old in 2023 was 16.71 million won, a 17.6% increase compared to the previous year. Among them, the repayment amount for household heads in their 20s increased by a staggering 47.1%. Additionally, there are 44.73 million multi-debtors who owe money to three or more financial institutions simultaneously in Korea, with the 20s and 30s generation accounting for 31% of them.

The gap between income growth rate and inflation rate also illustrates the tough life of the 20s and 30s generation. Among single-person households in Korea under 39 years old, the average income last year was 65.9 million won, a 1.9% increase compared to 2023. During the same period, consumer price inflation rose by 3.6%. Since income rose by only about half the inflation rate, financial conditions inevitably became tight.

The YONO phenomenon of drastically reducing consumption and spending frugally is spreading. Accordingly, the market is seeing more products emphasizing cost-effectiveness and ultra-low prices. This trend is clearly reflected in the upcoming Chuseok gift sets. Overall, the scale of pre-orders for gift sets has increased, but sales of gifts priced below 30,000 won have risen. In particular, a sock set priced around 9,000 won sold at Homeplus saw a 47% increase in sales, attracting attention. It is predicted that cost-effectiveness competition will emerge in the market going forward. To survive in the ultra-low-price market, it is time to reassess cost structures and carefully analyze consumer needs to develop pricing strategies.

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