An Era of Subscriptions Instead of Purchases... Youth Prefer AI, Middle-aged Choose Home Appliances

94.8% of Consumers Have Used Subscription Services
Preferences Differ by Generation and Lifestyle

As the 'subscription economy' spreads across the consumer market, it has been found that consumers in their 20s and 30s show the greatest interest in subscribing to 'generative artificial intelligence (AI)' services. The focus for the 40s to 60s age group was on 'health and home appliances' products.

The Korea Chamber of Commerce and Industry announced the results of the 'Recent Consumer Subscription Service Usage Status' analysis on the 19th, based on a survey of 1,000 adult men and women conducted by the global market research firm Macromill Embrain. According to the survey, 94.8% of consumers have already experienced using subscription services. When asked about 'subscription services they want to try newly,' those in their 20s and 30s most frequently chose generative AI services. Those in their 40s to 60s most often selected health and home appliances such as massage chairs and skin beauty devices. This is interpreted as reflecting the lifestyles of young people who are highly interested in learning and self-development and middle-aged consumers who prioritize health.

Major OTT services forming a pillar of the subscription economy. Yonhap News

The subscription economy is a business model where consumers pay a fixed amount regularly and receive products or services for the desired period. Consumers can use customized services without an initial burden, and companies gain advantages such as securing stable revenue sources and efficient customer management.

The Korea Chamber of Commerce and Industry analyzed that as subscription services diversify, the scope of subscriptions is also expanding. While demand in the past was centered on content such as videos and music, demand is increasing for 'life-oriented products' that offer convenience in daily life, such as health and home appliances and furniture.

The most frequently used subscription service by consumers was video streaming (60.8%). Shopping memberships (52.4%), internet and TV bundled products (45.8%), music and books (35.5%), and water purifiers (33.8%) followed. The accessibility of video streaming, which allows users to easily watch thousands of contents anytime and anywhere for a monthly fee, and the economic benefits of shopping memberships, including discounts, appear to be factors that increased usage rates.

The Korea Chamber of Commerce and Industry attributed the expansion of the subscription economy to "consumer trends that value experience over ownership, along with economic efficiency that allows consumption of desired products or services as much as needed without spending large initial costs." The advantages of subscription services chosen by consumers were the use of the latest products and services (69.9%), provision of personalized services (64.9%), and low initial costs (58.8%) in that order.

Lee Eun-cheol, head of the Digital Innovation Team at the Korea Chamber of Commerce and Industry, said, "The subscription economy aligns with consumer trends as it allows experiencing customized services and the latest products at reasonable costs even during economic downturns. Since demand is also expanding in the global market, companies need to develop models optimized for consumer needs."