How Do You Consume Nowadays?

The way young adults spend money has been changing rapidly and dynamically. This might be due to Gen Z culture, the proliferation of online and digital platforms, macroeconomic factors, and the long-term effects of COVID-19. In this article, I would like to briefly discuss the consumption trends among today's young people, which these factors might have influenced. Research shows that a large number of consumers follow these trends, so it would be interesting to see how much your consumption resembles the trends.

One of the most prominent categories of new consumption behaviors is the "dofarming" phenomenon. It is a combination of "dopamine" and "farming," referring to a consumption behavior that seeks stimulating pleasures that provide intense satisfaction in a very short time. Watching shorts on platforms such as TikTok and YouTube is a fine example. Many of us, including myself, have been guilty of staying up until the wee hours of the morning, unable to put down our phones after intending to watch just one or two short videos. Other examples include "Gacha" systems that heighten participants’ immersion with the promise of getting a rare item.

It is linked to the "Time-Efficient Society" consumption trend, which emphasizes the value of time by seeking instant gratification. Consumption patterns in the "Time-Efficient Society" tend to save every minute, exemplified by using Home Meal Replacement (HMR) or food delivery apps. They tend to emphasize the moment and the experience itself rather than possessions, such as traveling and exploring must-go restaurants. When consuming, they want to seek valuable consumption, preferring ethical and eco-friendly consumption.

Emphasizing time efficiency is also connected to efforts to shorten the purchase decision-making process. "Ditto consumption” is to mimic choices made by other people who are considered similar to the consumer or who the consumer trusts. "Ditto" means 'me too' and refers to how we rely on certain people, content, or platforms. As big data-driven recommendation systems and the proliferation of online advertisements have increased the number of choices available, some consumers actively look to others' consumption to reduce decision fatigue and wasted time. Being influenced by others has been discussed, such as the effects of word-of-mouth and social networks, but the difference is that specific influencers or platforms with specialized expertise are particularly powerful.

Another trend that is gaining traction is the YONO consumption. YONO, "You Only Need One," is the tendency to spend only what is absolutely necessary, contrasting with YOLO. It is closely related to the low-consumption trend, where people try to minimize spending in the face of job shortages, high inflation, and high interest rates. It can be attributed to minimalism in home decorating, where people buy only the bare minimum, or to subscribing to OTT platforms, where people only subscribe when there is content they want to watch and then unsubscribe when they are done.

This is a brief introduction to current consumption behaviors. Do you see many of your friends consuming in this way? Why do you think they do it? Analyzing consumption trends is my job, but it is also a process that helps me understand the world and, of course, myself, because I am a dynamic consumer as well. So, how do you consume nowadays?

By Kim Jong-dae, Assistant Professor, Faculty of Business Administration