Samsung Electronics Vice President Jamie Choi speaks at the Korea Herald Biz Forum: “Contact less, connect more” at The Shilla Seoul on Tuesday. (By Park Hae-mook/The Korea Herald)
What will consumers want in the future, and how can companies lure them?
Samsung Electronics’ innovation and startup investment arm, Samsung NEXT, is delving into the behavior of future consumers and preparing to establish new business models to attract them, said Jamie Choi, vice president at Samsung Electronics.
“In comparison with consumers in the past, today’s consumers seek diversity, empowerment and expression of one’s value,” Choi said during her lecture at The Korea Herald Biz Forum: “Contact less, connect more” at The Shilla Seoul on Tuesday.
Future consumers will be even more diversified than now as markets will become more segmented, she said, based on a forecast that minorities will account for over 50 percent of the US market by 2040.
“They will also have a new concept of loyalty,” Choi said. “Their loyalty will come from customized solutions, real-time interactive services and value sharing.”
Understanding the new concept of loyalty has become more significant for mass brand companies like Samsung during the critical time of the COVID-19 pandemic, which is bringing the future closer at a faster pace, according to the executive.
Currently, mass brands are facing risks because they haven’t renewed their business models to reflect the needs of future consumers.
To make consumers loyal, those companies could learn from emerging brands like video-streaming service Netflix, eyewear seller Warby Parker and workout-streaming service Peloton, she said.
Those companies are tapping into software to provide better solutions.
“Mass brands need to shift from product-based mass production business models to consumer-focused models in a bid to secure consumers’ loyalty,” Choi said.
To establish a consumer-focused business model, companies need to be capable of utilizing software, direct-to-consumer sales strategies and data analytics, she said.
“We need to invest more in efforts to combine hardware with software, direct-to-consumer sales and analyzing customer loyalty to overcome the current crisis,” Choi said.
By Song Su-hyun (firstname.lastname@example.org)