The 7 Major Business Trends of 2021 Are 'RESTART'

Selected by Woori Financial Research Institute
Hydrogen Economy, Digital, MZ Generation, and More
The First Year of a New Everyday Life Begins

[Asia Economy Reporter Kangwook Cho] Next year is expected to be the inaugural year of a 'Restart (RESTART)'?a new normal combining a return to pre-COVID-19 conditions with irreversible changes. Economic activities, which have been stagnant, will normalize with the development of COVID-19 vaccines, and the era of digital popularization will begin, based on digital capabilities acquired in a short period and essential technologies for realizing a hyper-connected society, such as 5G networks.

Additionally, it will be the first year when all members of the MZ generation (Millennials and Generation Z) are over 20 years old, leading to a reorganization of the consumer market centered on the MZ generation with expanded purchasing power. Following the election of U.S. President Biden, major countries are expected to refocus on eco-friendly policies.

Woori Financial Management Research Institute summarized these changes emerging from the COVID-19 shock and announced on the 1st that it selected 'R.E.S.T.A.R.T.' as the seven major trends that will dominate the business ecosystem in 2021.

The seven major trends proposed by the institute are ▲Arrival of the Hydrogen Economy (Renewable Energy) ▲Consumption Equals Fun (Expenditure of C.R.E.W) ▲Finance of the MZ Generation (Small-Big Ants) ▲Connecting to the World Without Contact (Touchless-tact) ▲Ultimately Flexible Organizational Culture (Autonomous Work Culture) ▲Strengthening IT Security (Rescue IT System) ▲New Digital Humanism (Technology with Humanism).

The institute expects that as the COVID-19 shock eases with vaccine development, digital transformation will accelerate technologically, the influence of the ultra-digital MZ generation will expand socially, and ecological and political efforts to reduce carbon emissions in response to the climate crisis will be strengthened.

Accordingly, social interests are expected to shift from 'wise home-staying life' to 'safe outdoor activities,' with the MZ generation leading trends in the digital society. Especially, as the digital transformation accelerates and enters the phase of digital popularization, attention is expected to focus more on the utilization aspect?where users can safely and conveniently use technology?rather than on supply factors such as new technology development. Furthermore, to address issues like the sharp increase in electricity consumption due to digital transformation, the use of non-fossil energy sources is expected to expand.

In particular, the MZ generation’s approach to asset management is expected to differ as they absorb information through YouTube, internet cafes, etc., and use digital platforms as the basic channels for financial activities. Investment targets include financial products incorporating 'Gamification' that add fun, peer-to-peer (P2P) investments that allow easy small-amount investing, and high-risk, high-return investments such as futures, options, and cryptocurrencies. Consequently, the financial market is likely to be reorganized around platforms suitable for the MZ generation, who are emerging from potential customers to main customers, and financial services tailored to their areas of interest.

Kim Sujin, head of the Industrial Research Team at the Future Research Office and author of the report, advised, "Along with Korea’s high IT technology and infrastructure, the culture of actively embracing new technologies is a strength that will lead business trends during the digital transformation period. Financial companies need not only to actively promote digital innovation internally but also to focus on the new main customer base emerging from trend changes, discover appropriate financial services and customer touchpoints, and seek business opportunities in newly emerging industries."

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