What are the interests of people in their 20s? What mobile phone applications do they often use? Nowadays, people in their 20s and 30s have quite different interests and consumption patterns. MZ Generation is setting new trends, investing in the stock market, and fl exing their individual success.

What generation do you belong to?
Generation M or Z?

The MZ generation is a combination of Millennials' M and Generations’ Z. What we need to pay attention to is that this generation is becoming a major consumer of goods and services.

MZ generation has peculiar consumption patterns

Generation MZ’s consumption patterns are diff erent from the previous generation, Generation X. Let's take a look at what these particular consumption patterns are.
One of the most prominent consumption patterns is called ‘catsumer.’ The word catsumer refers to consumption patterns that are similar to a cat’s. They create their own content rather than following trends. They are also very cautious about consumption. Because they are sensitive to changes, they don’t consume recklessly. It makes them create their own consumption culture based on their own experiences.

Interestingly, generation MZ also consumes media based on their own values. Following their personal principles, these consumers refuse to buy products from companies that experiment on animals.

Instead, they buy products from companies that deal with vegan products or join the zero-waste movement that aims to minimize waste.

Generation MZ is also actively involved in the stock market. Have you heard that the KOSPI has exceeded 3000 recently? Or have you ever heard of people whose stock prices have fallen or gone up? Recently, people in their 20s and 30s joined the stock market. While previous generations faced high interest rates from banks, generation MZ is looking for ways to make a profit despite the risks associated with trading. They have a unique spending pattern that allows them to make additional profit while attending school and working at the company.

Here are some examples of peculiar consumption patterns that JBNU Globe reporters in the MZ generation are actually experiencing.

Ex) Reporter So Woobin likes perfume, and he likes to make his own special scent by combining various perfumes and body sprays.

I like exotic scents that I have never smelled before, but I don't buy niche perfumes because that is also a ‘trend’. So, I combine perfumes with body spray that others can think are common and make them attractive.

Ex) JBNU reporters are following consumption patterns that conform to their personal values.

I love fruit, but after learning about the labor exploitation during the fruit import process, I promised to buy only fruits with fair trade attached!

Ex) When I get paid, I save a certain portion for investing in the stock market.

This is because I make small profits through stocks these days. When I am lucky, sometimes my profit from stocks is higher than my part-time job!

Why was this unique consumption culture born?

So why is their consumption culture different from the previous generations? Let’s take a look at what has created the specific consumer culture of the generation MZ.

When we look at the situations that people in their 20s and 30s face these days, economic depression and unemployment crisis are typical. This social phenomenon is blocking young people from moving forward with certain goals. So, young people’s uncertainty about the future has led to the creation of ‘catsumer.’ It also makes them pursue high returns from investment rather than savings.

Have you given up anything in your life? If so, how many things did you give up? These days, young people give up many things in the face of the housing crisis and unfortunately economic reality. They give up marriage and even childbirth. This is how the YOLO (You Only Live Once) and DINK (Double Income, No Kids) lifestyles created a unique pattern of consumption that replaces the skepticism caused by giving up their dreams.

Are they mad at money?

As we saw above, investment is a hot issue among people in their 20s. Last year, there were six million newly established stock accounts. Among them, people in their twenties’ and thirties’ accounted for more than half. According to Kyobo Book Centre, 35% of book buyers in the financial and investment sectors were in their 30s. This ratio is higher than those in their 40s (26.7%), who are the main customer group of bookstores. Also, the ratio of people in their 20s was 14.7%. Why is MZ generation so enthusiastic about investment?

There are two main factors making MZ generations jump into the stock market. First is the characteristic of the MZ generation. The MZ generation tends to value direct experience. Stocks, which can easily shift from profits to losses, are just right for their tempers. This combination between the character of the stock market and MZ generation make them fl ow into investment.

The second factor is social backgrounds. In the 2010s, the idea of the ‘lifetime workplace’ receded, and the prospect of buying a house with one’s salary disappeared. Furthermore, as the era of ultra-low interest rates continued with COVID-19, the MZ generation decided to invest rather than keep money in their piggy bank. These social backgrounds were the main factors in attracting the MZ generation to the stock market.

What is interesting is that their investment behavior is quite different from those of past individual investors. They tend to analyze and judge themselves based on information acquired through various media sources rather than recommendations from acquaintances. They also challenge complex corporate evaluations without hesitation.

Another feature of the MZ generation, 'fandom phenomenon,’ is also reflected in the investment market. Influential investors, such as Tesla’s Elon Musk, are able to make a signifi cant impact on the community and the value of certain assets.

Securities companies are quickly launching products considering the characteristics of the MZ generation and small-scale investment. For example, Korea Investment & Securities introduced a 'ministock' app that can sell overseas stocks for less than one share. Samsung Asset Management also introduced a new operational performance reporting method through video and KakaoTalk to suit the taste of the MZ generation. The major trends leading the market are coming from the MZ generation.

Fresh wind blows from the MZ Generation

The MZ generation is more flexible than any previous generation. They are also familiar with the internet and are more efficient with social media. At the same time, they feel satisfied through sharing rather than owning products and services and pursue new and unique things. There is also a tendency to enjoy a ‘flex’ culture that encourages people to show off their success or wealth. In many ways, it is a generation with a different lifestyle and psychological attributes from the older generation.

By Lee Won-jun Editor-in-chief, So Woobin Reporter