제 19 호 Are You a Cherry-sumer?
Kicker: LIFE
Are You a Cherry-sumer?
By Yun-Seo Jung, Reporter
Have you ever ordered a package with a friend to save on shipping, or shared an OTT subscription with others to save money? Then, do you know what we call people who do these kinds of consumption that we're used to doing? As mentioned earlier, people who spend intentionally and efficiently are referred to as "cherry-sumers".This word is a combination of cherry and consumer.In other words, a cherry-sumer is someone who is strategic and intentional about their spending in order to achieve extreme efficiency.In the case of a cherry picker, it means that people only take away profits, just like they only take away the delicious cherries on the cake.Unlike the negative connotations of cherry picker, cherry-sumer is a consumer trend that maximizes value by being as frugal as possible with the limited resources they have.
So why has cherry picking become popular? The main reasons are the rise of one-person households and the inflation due to the recession. Rising inflation has dampened consumer sentiment, and consumers have begun to spend more deliberately and efficiently in response to this situation. In addition, changes in the social structure due to the increase in single-person households and nuclear families have led to the cherry-sumer trend.
What are the consumption strategies of cherry consumers? Typical examples include joint purchases such as sharing an OTT service account, as well as purchasing small and small packaged products. Perhaps the most common behavior associated with cherry-consumers is the sharing of OTT service accounts. Although there may be price differences between OTT service companies, most companies allow account sharing, so people usually use OTT service using one account together. They post on social media to find people to share their OTT accounts, not only among friends, but even strangers.
The following are small-sized and small-packaged products related to the increase in single-person households. This buying strategy is particularly prevalent in food consumption. Some might argue that this is inefficient consumption because it is cheaper to buy in bulk purchase than in small purchase. However, if a single person buys in bulk, food spoils quickly and has to be thrown away, so it is more efficient for them to buy in smaller quantities to avoid overspending and reduce food waste. To capture these cherry-sumers, companies launched smaller portions and packaged goods that are more affordable for single people. Major convenience stores launched their own fresh food brands for one-person and two-people households. For example, CU launched a series of prepackaged vegetables. It sells 15 types of popular vegetables such as garlic, potatoes, peppers, leeks, and cabbage, packaged in small portions for one to two meals. The actual price of the vegetables ranges from a low of 900 won to a high of 4500 won, which is reportedly 30% lower than the industry average. Not only convenience stores, but also large supermarkets are increasingly selling various food products in small packages.
While many companies are launching products and services that reflect the efficient consumption patterns of cherry-sumers, there are limitations. In some cases, companies are actually losing money because of the tendency of cherry-sumers to buy goods and services collectively. OTT companies in particular are suffering from the negative impact on their profitability due to account sharing. In particular, Netflix, which has the largest share of the global OTT market, has been losing new subscribers due to consumers sharing their accounts with others. As a result, Netflix has taken steps to ban free account sharing. This means that if you want to share an existing account with someone who is not part of your household, you'll have to pay extra per month on some plans, or sign up for a new membership altogether. In fact, the Netflix website makes it clear that Netflix accounts should be shared between people who live in the same household, and that non-household members must create their own accounts to watch Netflix. This does not currently apply in Korea, but if it does in the future, it will be illegal for people who do not live together to share an account, so no matter how efficient consumption you seek, you should never break the provision.
As the recession continues, consumers are becoming more intentional about their spending. Unlike before, when they closed their wallets to inflation, cherry-sumers try to reduce the financial burden while spending more reasonably. It is also a change caused by the increase in single-person households. And companies are implementing various sales strategies to meet the needs of consumers with changing consumption trends. In response to the cherry-sumer trend, companies should not exploit characteristic cherry-sumers to make money, and consumers should also be cherry-sumers who consume wisely based on good citizenship and paying fair prices for goods and services.
Sources :
https://www.dbpia.co.kr/journal/articleDetail?nodeId=NODE11407041
https://www.ddaily.co.kr/page/view/2023072014484930118
https://www.bgflive.com/assets/upload/image/editor/20220613093205185342296.jpg