Trump Hair Socks?…Kakao's Ingenious Strategy to Target the MZ Generation

Photo by Kakao Gift Capture

[Asia Economy Reporter Bu Aeri] #Trump Hair Socks, Chicken-shaped Air Fresheners, Animal Underwear, Wise Home-stay Bean Sprout Kits. These somewhat surprising products are sold in Kakao's KakaoTalk section called 'Useless Gifts.' Kakao's ingenious planning has sparked a strong response among young people. Recently, Kakao has been actively working to capture the hearts of the MZ generation (born from the early 1980s to the early 2000s).

According to Kakao Commerce on the 30th, the 'Useless Gifts' corner applied to KakaoTalk earlier this month saw a sixfold increase in transaction volume. Kakao's 'Useless Gifts' is gaining momentum by winning the hearts of the MZ generation. Users in their 20s and 30s account for 70% of the users.

The MZ generation is accustomed to digital environments and tends to seek unique experiences such as B-grade sensibility. Recently, among them, the trend of exchanging 'Useless Gifts' has become popular on social networking services (SNS). A Kakao official said, "Due to recent social distancing, 20-somethings who could not meet even on anniversaries are exchanging fun gifts, which has become a trend," adding, "The response from young users is positive."

KakaoTV, launched on KakaoTalk last September by Kakao, also features 'Short-Form' content preferred by the MZ generation. Considering that they find long videos boring and enjoy mobile viewing, Kakao produced 'vertical content.' KakaoTV surpassed 100 million cumulative views, powered by the popularity of shows like 'Face ID' and 'Love Revolution.'

Kakao's efforts to win the hearts of the MZ generation are interpreted as a move to secure future growth engines. All of Kakao's businesses, including shopping, pay, and content, are based on KakaoTalk. Kakao has grown by adding new services to the KakaoTalk platform, which has 45 million monthly users. Therefore, for Kakao, it is an important task to keep existing users tied to KakaoTalk while acquiring new users. The MZ generation also has a significant population size. According to Statistics Korea, the MZ generation population is 17,974,000, accounting for 34.7% of the total population.

Naver is also actively targeting the MZ generation. Through its subsidiary Snow and granddaughter company Naver Z, Naver is launching customized content and new services for the MZ generation. Snow recently spun off the sneaker brokerage platform 'KREAM' with plans to lead the consumption culture of the MZ generation. Zepeto, an avatar-based SNS, is preparing content targeting the MZ generation in collaboration with CJ ENM's DIA TV.

Experts analyze that the MZ generation has become a major customer base for the two major portals. Kwak Kyutae, a professor in the Department of Global Cultural Industry at Soonchunhyang University, said, "Since the MZ generation is optimized for mobile, Naver and Kakao, whose main business is mobile, focus on them," adding, "Once the content and business for the MZ generation stabilize, they will gradually explore niches such as seniors and kids."

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