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Solo economics: The impact of loneliness on sales

A few decades ago, a person living alone was looked at through the prism of stereotypes. He was not understood. Loneliness was a source of anxiety and often condemned. Loneliness was associated with unsettlement and temporary hardship. The COVID-19 outbreak fundamentally changed public attitudes towards it.

The number of single-person households is growing every year. This lifestyle is chosen by representatives of different generations, professions and social status. Modern singles are not isolated, but are often more socialised than their family peers. ‘Bachelor's Corner’ can be found on many websites today.

Solo-economy and ‘single life’ have become new trends, turning singles into a significant group of consumers, influencing the market and business strategies. And this is not a temporary phenomenon, experts predict further growth of this segment. If your online shop can offer personalised solutions for single customers, they will probably become permanent ambassadors of your business. What does it take to make this happen? Halla Systems Co. Ltd shares its observations.

Loneliness: trends and facts of a global trend
The psychological perception of loneliness has changed gradually. Modern ‘solo consumers’ are not only young professionals who choose independence, but also representatives of the older generation, so-called ‘high-paid mature consumers’ who value personal comfort. They do not live ‘on their own’, but organise their everyday life based on their own desires. They value personal comfort and want to control their lifestyle themselves.

In the US, more than 28 per cent of households are single people, a similar trend is observed in Japan and Western Europe, especially Germany and France. According to Statistics Korea, the number of single-person households in South Korea will peak in 2041. In 2024, there will already be more than 30 per cent of such households.

What do ‘solo consumers’ buy?
When choosing products, solo consumers focus on size and function based on personal needs.

This segment generates demand for compact and convenient products:

Home appliances: mini-fridges, single-serve coffee machines, compact washing machines, small hoovers, ovens and toasters
Entertainment and technology: high-end headphones, tablets, game consoles
Subscription services: food delivery, streaming services, subscriptions for essential goods

Online retailers take note: home appliance sales are up 3% in 2024 due to ‘singles’. And the growth in spending on audio-visual and information-processing equipment - by 7% per year is explained by the general trend of individual consumption.

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‘Solo consumers": who are these people?
Solitude does not exempt from obligations and social relations. But one of the reasons for the popularity of this lifestyle is that it does not bind anyone to anything.

Successfully promoting your business and products to different groups of solo consumers requires tailoring your content to each age group. Halla Systems company recommends dividing the target audience by age, and then for each group to determine the needs and preferences, paying attention to habits and behaviour on the Internet.

Young (18-30 years old)

Young solo consumers prefer comfort in all its manifestations. This generation does not subscribe to the stereotypes of the past. They postpone marriage, seek self-realisation and are not afraid to be alone with themselves. Young ‘singles’ are active on social media and digital platforms. ‘Live’ with a mobile phone in hand, appreciate individuality and convenience. They are attracted to everything new and innovative. Something that can be adapted to their lifestyle.

Middle age (31-50 years old)

Middle-aged consumers tend to value convenience, quality and personalisation. They are often active people who enjoy socialising and value privacy. The internet, allows them to be independent and not feel isolated. They choose products that simplify everyday life, save time and ease routine. They respond to positive marketing, colourful products, game formats and interactive content. Advertising should take this into account by emphasising the functionality of products and services.

Mature consumers (50+ years old)

Mature ‘singles’ are most often concerned with health, everyday life, self-development, recreation and safety. They are interested in everything that can improve the quality of life. They do not skimp on comfort and choose expensive products carefully and for a long time. The number of mature South Korean consumers living apart from their families is steadily increasing. This is because during the pandemic, many elderly people left nursing homes and decided to live independently.

Marketing to those who choose to live on their own
To get the attention of solo consumers, you need to use the right advertising channels. For example, contextual advertising on Google, targeted advertising on Instagram or Facebook can be tailored to their interests. Ads should emphasise what the product: saves space, simplifies life or gives freedom of choice and comfort. Avoid phrases like ‘for singles’ - they can sound ambiguous.

Young people actively use mobile platforms and are more receptive to new advertising formats. Advertising should use bright and visually appealing colours. Older consumers, on the other hand, take a long time to consider and choose a purchase. Therefore, advertising should emphasise quality and simplicity.

To increase engagement, you can also implement a loyalty system, where each customer, placing orders, will accumulate bonuses or discounts on future purchases. You should not forget about personalised offers through email marketing.

Search strategies: where do solo consumers live?
If your target audience is people who live alone, how do you find them? Here are some effective strategies for you:

Data from social media platforms Facebook and Instagram allow you to filter your audience by age, geographic location, profession, interests, and many other characteristics. For example, you can tailor your ads to users who live alone (single households), in large cities, or who are interested in topics related to minimalism or personal achievements.
Platforms and apps for single people Matchmaking apps such as Tinder or Bumble, as well as interest and hobby platforms such as Meetup, can serve as a valuable source of information about solo consumers.
Use site analytics and user behaviour. Social media analytics tools, Google Analytics, Naver Analytic, Hotjar can help in analysing the behaviour of those who visit your website. For example, you can set up tracking of specific actions, such as visits to pages dedicated to one-person products, compact equipment and furniture.
Segmentation by interests and activity In Google Ads, Naver Ads and social media advertising systems, you can target ads by interest (e.g. minimalism, single person products, travelling alone, personal space, etc.). This will allow you to reach potential customers with relevant offers.

The solo economy will change the market in 2025, managers at Halla Systems Korea predict. It affects everything from shop assortments to marketing strategies. Small businesses can take advantage of this trend by offering personalised products and services. The key is to show that your product is designed for the customer's convenience and enjoyment.