"FLEX Haebeoryeotji Moya" Hyollojok, Investment for Myself

[2020 New Year Project - Generational Coexistence, Building Society Together]
<2>Spend When Needed, Millennials' Household Ledger

Luxury Purchases as Regret-Free Consumption Concept
20s Account for 33% of Luxury Sales, Main Customer Base

Value Work-Life Balance, Hate Weekend Hiking and Surprise Company Dinners
Generously Invest in Hobbies... Life Is Important
When Buying a House, 'Interior and Style' Are Top Priorities

[Asia Economy Reporter Yoo Byung-don] "I just flexed (flex)!"

The term "flex," originally meaning "(to) warm up (e.g., for exercise)," is nowadays used with a completely different meaning. Among Millennials and Generation Z, it commonly means "to show off" or "to splurge." It is mainly used when purchasing high-end products or spending a large amount of money for self-satisfaction. The term originated from American Black rappers, who, riding on their popularity and wealth, flaunted themselves wearing luxury goods on social networking services (SNS) and used the term "flex." The MZ generation, born between the early 1980s and early 2000s, is rapidly emerging as a major consumer group. They make up about 20% of the total population, with more than half living alone. According to the "2020 Business Trend" report by Woori Financial Management Research Institute, the net worth of Millennials has increased fivefold compared to ten years ago, making them comparable to other consumer groups. In this trend, the consumption patterns of this generation, which values "self, experience, and fun," have become a major focus in the domestic retail industry.

◆ "It's okay to be expensive! If I like it" = Until recently, the keywords for consumption among the younger generation were "cost-effectiveness" and "emotional cost-effectiveness." These terms represented practical and wise consumption trends and also symbolized the MZ generation. However, recently, the term "concepter" has become popular. A concepter is a consumer who values "concept" and "presentation" over price and performance, which is the opposite of cost-effectiveness. They do not hesitate to pay for expensive coffee at unique and beautiful cafes to take photos or purchase luxury watches. They seek things that look better and are more fun, even if they are a bit pricey. And they call it an "investment." Chwieopppogaegi (27, university student) said, "Spending that is one-time or regrettable is wasteful, but continuous and regret-free spending is an 'investment' in oneself," adding, "Buying the luxury goods I want is also an investment for myself."

Last year, 33% (85.8 billion euros, about 110.36 trillion KRW) of the global luxury market sales of 260 billion euros (about 334.42 trillion KRW) were generated by Millennials. The "Trend Y Report" recently released by big data consulting company Lotte Members also highlighted the prominence of Millennials. The domestic luxury market has steadily grown, expanding about 3.5 times in the past two years, with consumption by people in their 20s drawing particular attention. The number of luxury purchases by people in their 20s increased about 7.5 times within a year, and their usage share by age group rose by 6.4 percentage points. It is natural that retailers and luxury brands are focusing on consumers in their 20s. Another Millennial group, those in their 30s, along with those in their 40s, have long been the main customer base of the luxury market.

◆ MZ Generation Prioritizes Work-Life Balance = "Work-life balance" (WLB) has become an important factor in choosing a workplace in modern society. Especially, the MZ generation values securing personal time more than a high salary. According to a survey on "Conditions of a Good Workplace" conducted by job portal JobKorea targeting about 500 Millennial workers, "guaranteeing work-life balance" was chosen by 49.9% of respondents, ranking first. Workplace superiors who suggest weekend group hikes or sudden company dinners are considered "extremely detestable" (geukhyem) by Millennials.

Because of this, companies are implementing various flexible work systems. With increased leisure time amid these changes, the younger generation does not hesitate to spend on hobbies. As hobby-related applications become more active, one-day classes such as vocal training or leather crafting are increasing, and the MZ generation spends (invests) generously on these. Companies like HobbyBox, which sends "hobby boxes" such as Gundam plastic model assembly or hand-drip coffee making kits once a month, have also emerged.

◆ Emergence of the New Human 'Hyollo Tribe' = Statistics Korea predicted that the proportion of single-person households, which accounted for about 20% of the total population in 2005, will increase to 36.3% by 2045. The emergence of the "Hyollo tribe," a compound of "alone" and "YOLO (You Only Live Once ? an attitude that prioritizes current happiness and consumption)," is natural. They enjoy their own lives rather than forming relationships with others. This aligns with the MZ generation's value system, where "I" am the center of the world. This is different from the Baby Boomer or Generation X, who were obsessed with building personal networks, believing "connections are assets."

Various products and cultures for single-person households have already become widespread. Society has entered a stage where drinking alone, eating alone, and traveling alone are no longer unfamiliar. It is not difficult to find people deeply engaged in something alone just by turning your head slightly. Yangsonbak-i (34, IT developer) said, "There are times when I enjoy gatherings with colleagues or friends, but often I dislike having to do something with someone else," adding, "Spending money on doing what I want, eating what I want, and going where I want alone is the wisest consumption, isn't it?"

◆ "I don't care about south-facing! A space full of personality is important" = A significant portion of the MZ generation lives alone. Naturally, they are very interested in creating their own space where they can enjoy and decorate by themselves. As interest and demand for interior design increase, related products are also gaining popularity. In particular, they tend to actively prefer products with designs or features that are clearly differentiated from others rather than moderate or ordinary products. According to the "2019 Future Housing Consumer Awareness Survey" conducted by real estate developer Fides Development, more than half of Millennials ranked "interior design (26%)" and "style (25.6%)" as the first and second most important factors in future home purchases.

The related industry is also using "differentiation" as a marketing point to satisfy these desires of Millennials. Samsung C&T released new products reflecting the lifestyle of Millennials, allowing customers to choose flooring, art walls, furniture and door colors, and door opening methods. LG Hausys also targeted Millennials as the design concept target and presented three related themes. Understanding the thoughts, personalities, and desires of the MZ generation and aligning marketing points accordingly has now firmly established itself as a survival strategy in the industry.

This content was produced with the assistance of AI translation services.