Korea's Ten Hit Products and Services of 2007

I. Choice of 2007 Ten “Hit” Products and Services

1. Selection process and characteristics of the top ten list

In the 2000s, the so-called “Web2.0 era,” access to information on just about anything is easier and wider than ever. A burgeoning part of this availability is shared information, including consumers’ likes and dislikes about products or services. Such broadly shared information about products or services enables consumers to disregard or supplement company advertisements to deduce the genuine benefits of them. Hence, this year’s list of ten “Hit” products and services unequivocally reflects the power of information through consumers’ voluntary participation (i.e. uploading information about products or services on the web) and word-of-mouth sharing of opinions.

The term “product (or service)” is used broadly in our survey since some of the entries are people. What Koreans found most attractive for spending their money or time in 2007 made up an eclectic list that can be categorized into four key areas of “money,” “health,” “entertainment” and “national pride.” UCC (user-created content) - typically short videos of silly things loaded on the Web by young people - topped the list.

Ten Best Products of 2007

One of the list’s notable characteristics is that Korea has been seeing cultural items grow in significance in consumers’ spending and consumers play a bigger role in every industry. This trend is similar to that of Japan: Billy’s Bootcamp DVD, a very effective workout program where users experience modified military intensive training; and Kidzania Tokyo, a theme park for kids where they can experience a variety of business activities. Dentsu Inc., a Japanese advertising agency, said the most remarkable characteristic of its best products list for 2007 is that all the entries became popular through consumer networks, not corporate advertisements. It named the phenomenon “resonant consumption.”

Also notable is that IT goods, where there have not been many breakthrough products, are excluded from the list of “Hit” products and services for the first time since 2000. This suggests that simply modified products which are a far cry from innovative ones such as Japan’s Nintendo Wii and the US’ Apple iPhone cannot satisfy choosy consumers.

Best Products for 2007 of Japan and the US

2. Consumption Trend of 2007 Reflected in the List

Overall, the Ten Hit Products and Services of 2007 are related with consumers’ bigger concerns for wealth care, health care and “mind care” in an environment of easy access to information, economic uncertainty, the run-up to the Presidential election, a record-breaking stock market and growing attention to environmental protection. In addition, the list suggests that the keywords for 2007 consumption were “more sophisticated asset management,” “health and beauty,” “quest for national pride” and “pursuit of natural pleasure.”

Keywords of Consumption for 2007 based on Ten Best Products

(1) More sophisticated asset management: China funds, CMA

Koreans have become more interested in preparing for an uncertain economic future, and unlike in the past, the preferred approach is through investment that could bring relatively high but still safe returns.

Since the early 2000s, many people had once sought to hit a jackpot with quick get-rich options such as the lottery or tried to grab a piece of the hot real estate market. However, since early 2007, with the property market at a standstill because of tougher and tougher government regulations and the huge odds against overnight wealth realized, investors have been shifting their focus to relatively stable and high-yield financial products. They gravitated toward top performing China funds, to cash in on their neighbor’s double-digit growth, and to Cash Management Accounts (CMAs), which offered higher interest income than conventional check accounts at banks. Hence, money poured out of retail bank accounts and into financial products that promised higher returns without requiring the stress of individual attention.

(2) Daily health and beauty focus: corn silk tea, BB cream, wine

The global wellbeing trend affects every sector of Korean society. Health-conscious consumers increasingly choose daily food and beverage in consideration of health and beauty. Thus, in a follow-up to the “wellbeing tea drinks” on the 2006 ten “Hit” products and services, corn silk tea became a hot item, thanks to commercials that claimed the drink would help retain consumers’ V-shaped faces. BB cream enjoyed popularity on claims that it blocks harmful ultraviolet light and helps whiten skin. Wine drinking grew in popularity, a reflection of the health benefits of wine and a departure from traditional binge drinking, practiced mostly by senior, wealthier citizens.

Publishers and celebrities gave the wellbeing trend more impetus. Japan’s comic book series titled “Drops of God” have boosted great popularity for wine among the ordinary people as well as wine enthusiasts, contributing greatly to the popularization of wine. Corn silk tea and BB (blemish balm) cream have been helped by female celebrities who showed off their beautiful faces without makeup.

(3) Quest for national pride: athletic champions and historical dramas

Korea lost its bid to host the Winter Olympics in 2007 but its pair of teenage athletes put the nation on the global sports stage. Victories by figure skater Kim Yu-Na, and freestyle swimmer Park Tae-Hwan cemented their top rankings in their fields among competitors from the world.

At home, Koreans longed for new leadership which would guide the country in the run up to the Presidential election. As a result, they were drawn to historical dramas that evoked national pride and vision rather than historical melodramas centered on personal history or emotional dynamics among characters. Three “King” dramas of “Daejoyoung,” “Legend” and “Yi San”1 were watched widely throughout the country as they have presented kings who were deeply interested in justice and the fate of the country and acted for them. They also provided role models for today’s leaders, by showing in detail how great kings inspired and led people.

(4) Pursuit of natural pleasure: UCC, Infinite Challenge, Wonder Girls

Pleasure that is natural, not scripted, is more and more favored. This is why user-created content (UCC) ranked No. 1 on the 2007 list. The production of UCC is in the process of popularization as getting information and creating content on cyberspace becomes easier. Initially, UCC largely involved humorous video clips and made by a few young people, but now, it may include takes on much more wider themes from society and politics to economy. UCC producers may become celebrities among Netizens once they succeed in attracting attention to the originality of their UCC.

“Infinite Challenge,” a TV variety show, attracted huge audiences because its six participants are trying to perform an unrehearsed task together. Wonder Girls, a five-member dance group, has gained pop idol stature with a naive image in the Korean pop music business, where spectacular dance and remarkable appearance are taken for granted.

That trend indicates that reality is the basis of entertainment. Nowadays, consumers especially prefer cultural products based on sincerity and improvisational abilities. This stands in a sharp contrast to just a few years ago when “Lovers in Paris,” a drama about a modern Cinderella story, and “Welcome to Dongmakgol,” a movie set in the Korean War, were on the top ten list. Today, “Adlibrothers,” a newly program under the popular TV entertainment show “Gag Concert,” is gaining popularity because it unfolds an impromptu story line based on what the audience says.

II. Details of Ten Hit Products and Services

1. UCC (User Created Content)

Not only text-based UCC such as mini-homepages and blogs but also video UCC is spurring Netizens’ attention and interest. As of the end of March 2007, viewings of UCC videos on Korea’s main websites reached 52 million (a year-on-year 85.7% increase)2. In its early days, UCC was considered merely a communication tool among the small number of young Netizens, but now it plays a key role in driving public opinions in politics, economy, society and culture. For example, in early 2007, a video UCC showing a middle-school girl student beaten by a group of students alerted Korean society to the seriousness of school violence.

2. China funds

Overseas stock funds investing in emerging markets, including China, India and Vietnam, have become the favorite of investors for asset management. As of the end of November 2007, investment in overseas stock funds totaled 46.3 trillion won, more than triple that in April 2007.3 Nine of the top ten overseas stock funds in terms of returns are China funds. China’s rapid economic growth, which will receive further stimulus by the 2008 Beijing Olympics, have buoyed investor sentiment. Korean investors’ positions in the China funds reached 18 trillion won at the end of November, a more than fourfold increase from early 2007.

3. Teenage national athletes: Kim Yu-Na, Park Tae-Hwan

Kim Yu-Na, a 17-year old figure skating sensation, and Park Tae-Hwan, an 18-year old freestyle swimmer nicknamed “marine boy,” have rose to the top, the first Koreans to do so in their fields. Kim won gold at Grand Prix final for the second consecutive year and set the highest score in the world’s singles free figure skating in the fifth round of the Figure Skating Senior Grand Prix of the 2007-08 International Skating Union.

Park became Asia’s first gold medalist in the men’s 400-meter freestyle at the Swimming World Cup 2007, a follow-up to winning three gold modals at the 2006 Asian Games and being named Asian Games MVP. He has dispelled conventional wisdom that Asians are incapable of winning international swimming races, getting global attention.

4. Historical dramas: Daejoyoung, Legend

In 2007, broadcasters came up with historical dramas such as “Daejoyoung,” “Legend,” “Yi San” and “The King and I,” most of which have recorded high 20-30% viewing rates.5 Huge popularity of historical dramas has also boosted the sale of historical books and the number of parody advertisements based on historical dramas.

5. CMA (Cash Management Account)

Capital has flown into CMAs of merchant banks and securities companies, driving up the number of CMAs to 4.64 million at the end of November 2007, more than triple that at the end of 2006. Their boom arose as deposits in CMAs just for one day are given higher interest rates than those on checking or savings deposits of banks while they allow investors easy deposit and withdrawal of money, much like checking accounts of banks.

6. Infinite Challenge

MBC presented “Infinite Challenge” as Korea’s first real variety show and saw it grow to Korea’s most popular entertainment show in 2007. Its popularity is confirmed in numbers. For the first 11 months of the year, the show posted an average viewing rate of 18%. Particularly, in November, it was rebroadcast as many as around 90 times on cable TV for one week (the total viewing rate for one week reached 54.3%).6

7. Corn silk tea

Following in the footsteps of wellbeing beverage such as blended tea and barley tea of last year, a traditional herbal drink, corn silk tea has been popular in 2007. “Kwang Dong Cornsilk Tea,” debuted in July 2006, sold a total 120 million bottles (one bottle of 340ml) by October 2007, inviting other drink makers such as Woongjin Food, Dongwon F&B and Lotte Chilsung into the corn silk tea market. The tasty drink’s ability to undo facial swelling has turned women as well as the middle-aged and elderly into loyal customers.

8. Wonder Girls

The female five-member dance group’s song named “Tell Me” has topped online and offline Korean pop charts for 2007.7 Its simple but addictive melody and easy and exciting dance captured the hearts of people across professions and age groups such as students, police, stewardesses and nurses and led them to create their own UCC of “Tell Me” dance.

9. BB (Blemish Balm) cream

BB cream was originally developed to stabilize sensitive skin and help regenerate skin after peeling treatment using laser (for cosmetic purposes). Later it has become better known for other treatments such as correcting skin defects, blocking ultraviolet light and whitening skin. Accordingly, it has garnered favor with women of all age groups who are keenly interested in skin health and beauty, and has grown in sale through online shopping malls or TV home shopping.

10. Wine

With a growing demand for wine, Korea is rising as an important wine importer. Between January and October 2007, wine import reached US$120 million, six times more than in 2000. French wine once dominated the domestic wine market, but now faces a range of competitors from Italy, Chile, the US and Australia. Not only senior people but also young, middle-aged people favor wine as moderate intake is known to improve cardiovascular health.

 

  from  www.seriworld.org