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November 1, 2007
Miss Gold
I had a fascinating day in Seoul, Korea. The country is entering the final phase of the presidential election, with the two candidates sprinting to the finish line, and the former Mayor of Seoul Myung Bak Lee about 15 points ahead. The country seems prosperous and self-confident, the economy is humming along led by the usual big names (Samsung, LG, Hyundai) and a set of aggressive mid-sized multinationals (Hankook Tire, Posco Steel) with big ambitions for expanding outside of their Asian stronghold.
The most profound insights came in a meeting with a senior executive at Standard & Poor’s, the rating agency Jung Tae Chae. He told me about the emergence of a group of young affluent working women in their late 20s and early 30s, still single and loving it. Known affectionately as, “Miss Gold”, this is the most important new segment for marketers of imported cars, overseas travel, upscale food and clothing. They delay marriage by choice. Many still live at home with their parents but increasingly can afford their own apartments. They have different attitudes about premarital sex from previous generations. They demand more equal relationships with men on the domestic front and in the workplace. One of the consequences is a precipitous drop in birth rate, with only 1.08 children per married couple, well below the level in other industrialized nations and a great concern for the economy as the population inevitably ages.
Even more interesting is how the rise and influence of Korean women can be reflected on the internet. According to LG Economic Research Institute, a new trend of influencers has emerged in Korea - the 'wifelogger' (wife + blogger). Out of 31.8 million internet users (59% of the population), 2.8 million (9%) are wifeloggers. Many housewives are utilizing the internet to share information about their hobbies/interests and these personal blogs allow Korean women to exchange information and tips on everything from cooking recipes, interior design, education and raising children. Some of the more popular wifeloggers are now considered power bloggers and are being sought after by companies hoping to ride on their influence.
I also learned that the educational system is causing parents to limit the number of children in a family. Here is the downward spiral. The education in public schools is not sufficient to earn entry into one of the best colleges (sounds familiar—this happens often in the US as well!). Korean parents, knowing that education is the key to a better life, engage private tutors. This can cost between $500-1000 per month, a major burden even for the two-income couple. On average, children are expected to go to school for 8 hours a day, do homework for four hours, then have tutoring for one or two hours. There is little time left for physical education or sports. In fact, obesity among Korean children is rising quickly. There is also real angst among the teens who feel the parental pressure to succeed.
Korean consumers are increasingly open to global brands, from Japanese cars to American videogame boxes. In fact, 70% of Koreans want the Free Trade Agreement with the USA to pass their legislature so that tariffs drop even more on imported items. As their market share erodes slowly at home, Korean companies have no choice but to expand aggressively overseas.
I always leave Korea with a smile. I identify with Koreans. They remind me of Chicagoans, committed to hard work, quality, family, and quiet achievement. I will write later in the week about Beijing.
Posted by Edelman at November 1, 2007 9:06 AM
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Comments
As I lived in Tokyo for a while and encountered the locals. Aren't these Korean 'Miss Golds' just copycats of their Japanese (f) counterparts who've been pioneering this 'sex in the city' lifestyle (culturally exported by the West) for some years now?
Posted by: Gerry McCusker at November 4, 2007 10:42 PM