Post-COVID Consumer Trend is 'SHOCK'... "Expansion of Online and Home Life"

Shinhan Card Presents Post-Corona Consumption Keywords
'Online (S)', 'Home Life (H)', 'Health & Hygiene (O)', 'Pattern Change (C)', 'Digital Experience (K)' Meaning

[Asia Economy Reporter Ki Ha-young] As the consumption paradigm changes due to the spread of the novel coronavirus infection (COVID-19), Shinhan Card has presented 'S.H.O.C.K.' as a new consumption trend.

On the 19th, Shinhan Card proposed S.H.O.C.K., which stands for 'Online (S)', 'Home Life (H)', 'Health & Hygiene (O)', 'Change in Patterns (C)', and 'Digital Experience (K)' as consumption trends in the post-COVID era.

First, attention was drawn to the rapid shift from offline-centered consumption to online. Physical spaces related to consumption are being replaced by various services based on online platforms, making contactless consumption a daily routine. This was particularly noticeable in the distribution sector. In March 2020, the proportion of online consumption within the distribution sector was 65%, an increase of 7 percentage points compared to January 2020, before the spread of COVID-19. Among the performance and movie sectors, 'Over-The-Top (OTT)' services saw a 20% increase in usage amount in March 2020 compared to the average usage amount from December 2019 to February 2020.

With growing interest in home life, consumption within residential areas also increased. Due to the impact of COVID-19, such as refraining from going out and the expansion of telecommuting, usage rates in residential areas like Bukgajwa and Sanggye increased by up to 12%, centered on lifestyle-related sectors such as confectionery. Conversely, usage rates in office areas such as City Hall and Yeouido decreased by up to 34%.

As the importance of health and hygiene reemerged due to COVID-19, consumption related to health and hygiene also expanded. Analyzing sales of hygiene and clean home appliances such as clothing care devices, dryers, and air purifiers, Shinhan Card usage amounts in March 2020 increased by 42% for dryers and 21% for air purifiers compared to the average usage amount in the previous three months (December 2019 to February 2020). In particular, sales of clothing care devices increased by 267%.

Furthermore, Shinhan Card noted that fixed consumption patterns in terms of time, age, and purchasing methods are changing in various ways. As online consumption spreads, services that were mainly used by the 20s and 30s age group in certain sectors are expanding to the 40s and 60s age groups. Delivery apps are a representative example. The proportion of 40s and 60s users among Shinhan Card customers using delivery apps increased by 6 percentage points from 23% in 2019 to 29% in 2020. 'Drive-thru' style services are also increasing in various forms. Applied to spaces not previously seen, such as fish markets, department stores, and pharmacies, the usage rate of drive-thru stores is also on the rise.

Lastly, with the decrease in outdoor activities and acceleration of contactless consumption, the spread of digital experiences is expected to continue. Even the 50s and 60s age groups, who were somewhat unfamiliar with digital platforms, are increasing their use of digital services. Online payment usage by the 50s and 60s age groups increased by 12 percentage points month-over-month in March 2020 as the COVID-19 situation persisted.

Shinhan Card Big Data Research Institute stated, "The paradigm shift caused by social distancing and digitalization is undoubtedly a sudden situation that no one could have predicted," and added, "Shinhan Card will continue to discover new consumption areas in line with the new consumption trends brought by the post-COVID era and expand advanced lifestyle services that meet diversified market needs."

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