"2030 Focus on Flex and Cost-Effectiveness, 5060 Embrace Online Shopping Trend"

Hana Financial Research Institute Publishes Report on Online Consumption Patterns by Generation

[Asia Economy Reporter Kiho Sung] It has been revealed that the 2030 generation engages in "balanced consumption," utilizing not only luxury purchases but also secondhand transactions. In contrast, the 5060 generation has significantly increased consumption across online product areas such as comprehensive shopping malls, delivery applications (apps), and online video services (OTT), confirming their role as emerging leaders in online consumption.

Additionally, as consumption aimed at enhancing convenience appeared as a common behavior across all generations, demand for subscription services such as home services, regular subscriptions, and home appliance rentals has also greatly increased.

The Hana Financial Management Research Institute, affiliated with Hana Bank, released a report titled "Changes and Implications of Online Consumption Behavior by Generation" on the 4th, based on Hana Card online payment data. Comparing before and after COVID-19, the overall scale of online consumption increased sharply across all age groups, with different characteristics emerging by age group in consumption sectors.

Analyzing two years of Hana Card (personal credit and check cards) online payment data from January 2019 to December last year, the institute confirmed changes in the rankings of the top 10 consumption sectors by age group. The travel and accommodation sectors dropped significantly in ranking or disappeared from the top 10 across all age groups, but the 20s showed little difference, indicating a steady demand that shifted to domestic travel.

Due to the impact of COVID-19, with increased time spent at home and more remote work, online education, and meetings, the ranking of electrical and electronic products rose among all age groups under 40. As social distancing led to more home dining than eating out, the payment scale ranking for food delivery apps also rose across all age groups from their 20s to 50s.

Last year, about 55% of the total online luxury payment scale was accounted for by those in their 20s and 30s, reflecting recent trends such as flex culture and self-expression and showing that these desires for display are also reflected in digital consumption. The scale of online luxury consumption by those in their 20s and 30s through luxury brand-operated online stores and comprehensive luxury shopping platforms increased by 80% and 75%, respectively, compared to the previous year in 2020. Notably, secondhand luxury consumption among the 20s and 30s decreased, indicating intensified consumption seeking rarity with terms like "limited edition" and "real."

The secondhand transaction scale was also dominated by the 20s and 30s, accounting for about 61%. In the case of secondhand phone trading platforms, consumption by those in their 30s increased by 231%, and consumption by those in their 20s on secondhand goods trading platforms such as Bungaejangter increased by 111%. The MZ generation, corresponding to those in their 20s and 30s, shows strong demand for luxury goods but is also actively engaged in thrifty consumption through secondhand transactions when necessary.

When dividing the total online card payment scale into those under 30 and those 40 and above, it was confirmed that the under-30 age group increased by about 24% compared to 2019, while the middle-aged and older group aged 40 and above increased by about 49%. In particular, the payment scale growth rate for comprehensive shopping malls such as Coupang, Gmarket, 11st, and Auction was about 1.8 times higher for those aged 40 and above than for those under 30, confirming that online consumption culture is expanding to the middle-aged and older generations.

The average amount per payment transaction decreased across all age groups. The decrease was greater among those aged 40 and above (-7.6%) than those under 30 (-3.2%), indicating a relative increase in small-amount payment transactions among the middle-aged and older groups. Above all, consumption in delivery apps and OTT service sectors, which were mainly driven by younger generations, also increased significantly among those in their 50s and 60s. The payment scale for delivery app services among those in their 50s increased by 163% in 2020 compared to the previous year, and by 142% among those in their 60s. OTT service payment amounts increased by 181% for those in their 50s and 166% for those in their 60s. Additionally, consumption related to home interior increased by 80% compared to 2019, and by 40% among those in their 60s, proving that active seniors in their 50s and 60s, familiar with the digital environment, are emerging as new leaders in consumption.

Among online consumption sectors, payment scales for lifestyle convenience-related services increased significantly due to the influx of new consumer groups. Last year, home service payment scales for those in their 50s and 60s increased by 48% and 25%, respectively, compared to the previous year, and those in their 20s increased by 60%, showing the highest growth rate among all age groups. Especially among those in their 20s, who have a high increase rate in single-person households, home cleaning (55%) and contactless laundry services (38%) were identified as the home service sectors with the largest consumption increases.

Meanwhile, in the case of regular product delivery, the payment amount scale increased significantly due to the influx of new consumers aged 40 and above (40s 57%, 50s 97%, 60s 109%), and new subscription demands in sectors such as underwear (665.7%), flowers (16.3%), and hobby goods (349.1%) also increased.

With the increase in single-person households and the ongoing impact of COVID-19, digital consumption is expected to continue increasing across all generations in the future. In particular, as the 5060 generation, emerging as new consumption leaders, spreads positive digital consumption experiences and the MZ generation continues experience-seeking consumption, consumption trends centered on convenience, cost-effectiveness (performance relative to price), and emotional value (satisfaction relative to price) are expected to continue in the digital environment for the time being.

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