Home appliance industry is paying careful attention towards millennium generation as it has emerged as an important axis of economy. According to Samsung Electronics, 73% and 69% of consumers that purchased its home appliances and TVs respectively is millennium generation. Some manufacturers even set up task forces that analyze and research millennium generation. Home appliance manufacturers are analyzing its behavior, types of consumption, and lifestyle in detail to create appropriate products.
◊Millennium generation emerging as an important figure within home appliance industry
Millennium generation refers to people who were born between early 1980s and early 2000s. Because they are children of baby boom generation, they are also called baby boom eco-generation. According to Hana Institute of Finance, there are about 14.90 million people in South Korea who are considered as millennium generation (1980-2000). Based on the population in 2018, this amount corresponds to 28.8% of the entire population in South Korea.
Millennium generation is proficient in ICT (Information Communication Technology) and has high university entrance rate. Although they generally were born under digital environment where it was affluent physically, many of them entered society during an economic crisis after there was a financial crisis globally in 2018. Percentage of millennium generation out of working age population in South Korea is estimated to increase greatly from 48.2% in 2017 to 83.2% in 2025.
Millennium generation has a tendency to find happiness in small things and to emphasize importance on value-based consumption. Although it also emphasizes saving just like the older generation, it does not save its money for things that it wants. Home appliance industry set millennium generation as its major consumers because it does not hold its money back for products it wants and it generally has high purchasing power. It also has high rate of purchasing premium products as it willingly purchases expensive products as long as they bring usefulness.
◊Samsung and LG preparing measures for millennium generation
Many home appliance manufacturers are preparing various measures to target millennium generation. Samsung Electronics is currently operating Millennial Committee within its CE (Consumer Electronics) Business Department. Millennial Committee analyzes products and services and marketability at the eye level of the millennium generation. Because Samsung Electronics’ sales are highly dependent on the millennium generation, it is developing and launching relevant products by carefully analyzing patterns of consumption, lifestyle, and personalities and characteristics of corresponding consumers.
“We will be able to obtain new opportunities for growth if we develop products and services that the millennium generation wants.” said a representative for Samsung Electronics. “It is very important for us to know what the millennium generation is thinking and experiencing.”
LG Electronics currently does not have a group that is solely responsible with analyzing the millennium generation. However, its business department researches the millennium generation goes through thorough analysis. NBC (New Business Center), which develops innovative products, is also researching the millennium generation.
“Since millennium generation is one of our major consumers, each of our business department goes through thorough analysis and research.” said a representative for LG Electronics.
◊Samsung and LG introduce various products personalized for the millennium generation
Samsung Electronics is strengthening lineup of its lifestyle TVs to target the millennium generation. Followed by The Serif that emphasized 2016 design, it also introduced The Frame that has a frame become a TV and The Sero TV for the millennium generation that enjoys vertical contents.
Samsung Electronics also introduced ‘customized home appliance’ according to a characteristic of the millennium generation that emphasizes one’s personality. It released BESPOKE refrigerator that allows one to freely change how a refrigerator is set up just like Lego. One can pick various materials and colors according to his or her taste. Samsung Electronics recently stated that it would continue to introduce innovative products that are applied with consumers’ lifestyle through a project called ‘PRISM’. Its plan is to target the millennium generation with products that are applied with consumers’ personalities and taste rather than mass-produced ready-made products.
LG Electronics introduced home appliances for the millennium generation that emphasizes ‘one’s satisfaction’ rather than price and performance and ‘LG Objet’ that combines home appliance and furniture. LG Objet is a lineup of products for premium consumers that prefer products that provide happiness and satisfaction and space for rest. LG Objet is comprised of refrigerators, air purifiers, audios, and TVs.
LG Electronics also released home appliances based on ‘pink’ color that is preferred by many young people in South Korea, Australia, and Taiwan. It released cordless A9 that is applied with ‘blossom pink’ color. Although this color is rarely seen within current vacuum cleaner market, it is drawing popularity through positive responses from the millennium generation.
Staff Reporter Park, Sora | srpark@etnews.com