'Blue ocean' consumer groups offer new biz opportunity: report

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SEOUL, March 10 (Yonhap) -- Higher unemployment, declining marriage rates and
choosier consumers are bad news for local businesses, but they could promise
better returns for certain sectors amid the protracted economic slump, a
government report showed Tuesday.
The National Statistical Office (NSO) selected 10 "blue ocean" consumer groups,
termed "bluesumer," that have few competitors and promise increased opportunities
for local companies to boost revenue.
Some of the groups are the result of the economic slowdown, while others are an
outcome of the nation's changing demographics.
Of them, the NSO cited the labor market, which has been hit hard by the ongoing
economic downturn.
Though a disaster for college graduates, the toughening job market is a boon to
recruiting companies who help them find a place to work. According to the NSO,
the job-recruiting market grew to 80 billion won (US$52.4 million) last year from
around 30 billion won in 2003.
Another promising consumer group is single households, which are growing at a
fast clip as more people delay getting married. Breakfast delivery services,
"mini-sized" apartments and furniture tailored to a one-person household will
also likely create a huge market down the road.
Single-person households numbered 1.64 million in 1995, but the figure soared to
3.42 million this year. By 2030, single households will grow to 4.71 million,
accounting for 23.7 percent of the total, according to the NSO.
"As people delay marriage due to the economic downturn and increasing numbers of
senior citizens are living alone, they are changing the nation's consumption
patterns," the NSO said.
The increase in single households is a "global trend" that is expanding and this
will create new business opportunities for companies providing tailored products
and services based on analysis of their unique lifestyle, it added.
"Smart consumers" are also among the new bluesumers that businesses have to focus
on, said the NSO. As the economic slowdown is deepening, consumers are tightening
their purse strings and are opting to use second-hand products and rental
services, the office said.
According to Auction, an online trading company, transactions of second-hand
products jumped 104 percent in September from a year earlier but soared 140
percent in October and 265 percent in November. Last December, the figure jumped
around six-fold from a year earlier.
Cyber shoppers are also among the new consumer groups as the nation's solid IT
infrastructure gives individual shoppers easier access to high-speed Internet.
Last year, e-commerce transactions amounted to an all-time high of 629.97
trillion won, up 22 percent from a year earlier. Purchases by individual cyber
shoppers came to 15.76 trillion won and sales over the Internet will likely
exceed those at department stores this year, the office said.
"Internet-based transactions are growing at a fast pace as they can be done
anytime and anywhere. They also provide cheaper prices," the NSO said.
"E-commerce is brining about innovation in our life styles."
In-bound travelers were also among the bluesumer groups. The NSO said that the
economic slowdown and a depreciating local currency is bringing increasing
numbers of tourists to the country. Health-conscious consumers are also cited as
more people are concerned about the safety of what they eat.
"When domestic demand comes to a near standstill, local businesses and
self-employed people are having trouble finding new revenue. This led us to
conclude that it is more important to locate blue ocean consumer groups to
provide new ground for growth where competition is low," the NSO said.
kokobj@yna.co.kr
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