The idea of minimalism is often perceived in a quantitative sense.
However, in today’s consumer market minimalism is not about buying less but about buying better, and retail players are scrambling to present items and services that can encourage spending by appealing to consumers’ sense of value.
Minimalist storage and decoration items available at Ikea (Ikea)
“Today’s consumer does not care about the perception of others. Everything is focused on finding happiness for the self, for defining one’s own values and spending accordingly,” explains Yeo Jun-sang, a professor of consumer studies at Dongguk University.
Yeo says that the new key term for retailers seeking growth is subtlety, a charm in products that may not be immediately apparent but draws in consumers with innate value.
One company that has been quick to gain from this new value-focused trend is furniture maker Ikea, whose function-focused products specifically target consumers who want to buy just what they need without being tied down to conventional concepts about how to decorate their homes.
“Who better to appreciate a folding sofa that can hang on a wall, or a pillow that becomes a quit, or a self-watering pot that helps keep unattended plants alive for two weeks?” asks the company’s promotion for its latest PS collection, rolled out in February.
Consumption is also rising for products that can help people attain a minimalist lifestyle and declutter their homes. According to online open market Auction, from January to March sales of storage boxes for the home grew by 466 percent on-year, while sales of wall-hanging shelves rose by 322 percent.
New mobile-based services such as Matazoo have also appeared, offering small-scale storage space for those looking to move unnecessary items out of their homes or offices.
Similar ideas about value over branding have been apparent in other industries as well. In 2015 Kolon FnC rolled out a new lifestyle brand called Epigram that focuses on items offering a more analog and slow lifestyle. Fashion company Handsome is seeing rising sales with its high-quality cashmere products brand The Cashmere, and Shinsegae launched a cashmere-focused brand called Della Lana last year, indicating that the trend-driven fashion industry is also turning its eyes towards simple quality over flashy fads.
“Companies know that consumers are no longer looking for brands, but for products that have been noted for their unique designs and long-lasting quality, and are moving accordingly,” said Yeo.
Value-focused consumption goes beyond product design and reaches into lifestyle services as well.
Rather than buying products that may one day grow obsolete, consumers are increasingly looking for rental services that allow them to use products just as long as they need them.
Although Korea has had a long-standing industry of renting out large, expensive products like massage chairs and water purifiers, the latest services include rental services for everything from children’s books and toys to luxury bags and clothes, which are often only worn once or twice.
Online open markets such as Coupang and 11st are also rolling out delivery services that allow consumers to order regular deliveries of everyday household items. 11st offers regular deliveries of fresh fruits and vegetables, desserts and baby products through its “Life+” section, while also allowing one-touch ordering of household products through its magnetic ”smart buttons“ that can be placed around the home.
”When ordering products with smartphones, consumers have to go through four steps including opening the app, searching for a product, paying, and entering delivery information. With our Smart Button, all that can be done with one push,“ the company said, noting that the service is most popular among busy new mothers and single office workers who want to spend less time on shopping for household essentials.
According to Seo Yong-gu, a business professor at Sookmyung Women’s University, minimalism is not simply a trend but a fundamental shift in the way people think about themselves as consumers.
“Consumers have grown tired of the old materialistic capitalism and are looking for true value in a sea of information in a digital age,” he said. “This shows that Korea has become an advanced market. Companies can no longer make profits here using their old marketing tricks, and will have to look abroad at still fast-growing markets like those in Southeast Asia to grow based on quantity rather than quality.”
Seo said that in a minimalist age, the key is sincerity. “It’s the age of Marketing 4.0. Companies can no longer tell consumers what they want. The ball is in the consumers’ court to decide what’s valuable to them. Companies must display sincerity through contributions to the community and good practices, and wait for consumers who agree with those values to find them.”
By Won Ho-jung (hjwon@heraldcorp.com)