Customer satisfaction expected to increase for OTT services
By Kim Bo-eun
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The Korea Productivity Center (KPC) predicts that customer satisfaction will increase for media streaming platforms as competition intensifies among companies offering these services to attract subscribers as they have become a key source of entertainment. amid the COVID-19 pandemic.
The NCSI index measuring the satisfaction levels of business customers this year added over-the-top multimedia service providers (OTT) and music streaming companies, as users of these services have increased. The KPC publishes the index on an annual basis to help improve the competitiveness of local businesses.
The KPC expects customer satisfaction levels to increase for OTT services, as competition intensifies among companies to provide better quality services at lower subscription rates in order to achieve more large market share, given the high interest of consumers.
The arrival of global OTT players is expected to further stimulate competition between platforms to provide better services to consumers. Disney Plus and Apple TV + have launched their service here in recent months, and HBO Max is expected to debut in the local market later this year.
Internet Protocol Television (IPTV) service providers have seen their services increase in value over the past two years due to the pandemic, but the KPC has noted that they could lose their OTT platform subscribers if they do not. ‘do not offer greater differentiated value.
As for companies in the fashion industry, the KPC has identified the growing demand from Generation MZ – millennials and Generation Z in their 20s and 30s – for environmentally friendly products and services. Apparel manufacturers are urged to respond to such demands and to pay greater attention to online retail and marketing, on the basis of digital transition, to meet customer needs.
In the food industry, the KPC said the protracted pandemic has led to an increase in demand for ready meals as people work and take classes from home. He also identified live online broadcasts as a growing sales medium, and food companies’ collaboration with entirely different industries as a key trend.
Food businesses are advised to reflect consumer needs arising from growing one-person households, such as small packaged quantities and easy-to-prepare meal kits.
In addition, they need to keep up with the welfare trend in the food industry, which is primarily aimed at reducing sodium and sugar in food products, the KPC said.
The cosmetics market has also seen changes amid the pandemic, with marketing activity expanding in the form of online trials. Loreal Group has integrated ModiFace virtual reality technology on its Instagram shopping platform to offer product test simulation services. Estée Lauder gave users of the interactive Snapchat messaging system the opportunity to virtually try out their basics.
Another notable trend is the rise of dermacosmetics. These are specialized skin care products made in consultation with dermatologists. Demand has increased as wearing masks to prevent the spread of COVID-19 has given rise to various skin problems. The local cosmetics giant AmorePacific recently integrated its subsidiary Aestura to focus more on dermal products. LG Household & Health Care acquired CNP Cosmetics, in addition to Carezone and DermaLift for the same purpose.
The cosmetics industry also focuses on microbiomes. Microbiome skin care involves removing harmful bacteria while adding bacteria that are helpful to improve the skin. Loreal, as well as AmorePacific and LG have launched such products in recent years.