[News Terms] 'Year of the Blue Snake' This Year's Consumer Market Focuses on 'SNAKE'

Economic Recession and Rising Domestic and International Policy Uncertainties
Survival Comes First, Next-Generation Revenue Models Must Be Found
AI and K-Culture Highlighted as New Opportunities

'SNAKE' is the keyword for this year's consumer market presented by the Korea Chamber of Commerce and Industry on the 7th when publishing the '2025 Distribution Industry White Paper.'

Considering that this year is the Year of the Blue Snake, the five major keywords were condensed into 'SNAKE.' The first letters of Survival, Next Biz model, Artificial Intelligence (AI), K-Culture, and Economical consumption were taken. This implies that as the economy stagnates and uncertainties in domestic and international policies intensify, distribution companies must find new growth breakthroughs to respond to recession-type consumption.

On the 7th, the Korea Chamber of Commerce and Industry published the 2025 Distribution Industry White Paper and presented 'S.N.A.K.E' as the five major keywords for this year's consumer market.
[Photo source=AI image]

Above all, 'Survival (S)' is emerging as the top priority for distribution companies. Over the past five years, the growth rate of the domestic retail market has been declining since peaking at 7.5% in 2021. The growth rate for January to September last year dropped to 0.8% compared to the same period in 2023. This year, due to changes in U.S. trade policies and increased domestic political uncertainties, consumers are expected to adopt a more cautious attitude. Companies are likely to engage in fierce competition to meet the more demanding consumer needs while offering cost-effective products.

The Korea Chamber of Commerce and Industry pointed out that developing 'Next Biz model (N)' is crucial in this environment. In particular, companies are expected to accelerate profitability through the 'retail media' business, an advertising business utilizing online and offline channels. Additionally, highly personalized conversational shopping, including C2C (consumer-to-consumer) e-commerce models such as secondhand market platforms, is anticipated to gain attention.

Next, 'AI (A)' was identified as a tool to enhance corporate management efficiency. By analyzing consumer patterns and forecasting future demand using AI, companies can respond more flexibly to rapidly changing market environments. There is also the advantage of increasing productivity through personalized services and optimization of supply chains and inventory. The global AI market in the distribution industry is expected to grow to $54.92 billion by 2033, which is 5.5 times the $9.97 billion recorded in 2023.

Foreign customers are selecting cosmetics at a cosmetics shopping mall in Myeongdong, Seoul.
Photo by Heo Young-han

As a new breakthrough, 'K-Culture (K)' was importantly mentioned. Commerce fused with K-Culture is expected to be a growth breakthrough for domestic companies. Companies related to K-Culture are achieving remarkable results due to the global spread of K-Culture. Among them, CJ Olive Young has established itself as a 'shopping mecca' for foreigners where they can experience K-content, including beauty, all in one place. CJ Olive Young recorded cumulative sales of 3.5214 trillion KRW and operating profit of 345.9 billion KRW as of the third quarter last year. It is forecasted that total sales last year will exceed 4 trillion KRW for the first time.

The final keyword is 'Economical consumption (E),' with price competitiveness identified as a core keyword. Due to the widespread recession-type consumption trend caused by the economic downturn, YONO (You Only Need One) consumption is expected to increase. YONO refers to a consumption pattern where unnecessary purchases are restrained and only essential items are bought.

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