[Weekender] An era of prosumers

People have transitioned from being consumers to prosumers more than ever today.

Infact, the term prosumers -- coined by Alvin Toffler -- is now considered the apex of consumerism.

The American writer and futurist noted in his 1980 book, “The Third Wave,” that prosumers -- people who produce many of their own goods and services -- will replace the declining number of pure consumers in the future.

They truly influence the products, rather than bluntly picking up what the producers offer.

Consumers become producers

Many companies regularly hold ombudsman sessions to reflect their customers’ feedback, but these days, the customers have started jumping into the production stage.

Swedish furniture giant Ikea invites children to design their own stuffed toys.

The Soft Toy Campaign was launched in 2003 by the Ikea Foundation to support children in need. The toys of the Sagoskatt Collection are based on 10 drawings of children where Ikea has its outlets, and are sold as s limited edition every year. Ikea Korea has released emoticons of such stuffed toys through Korean mobile messenger KakaoTalk to promote the campaign.

Japanese clothing brand Uniqlo also holds UT Grand Prix, a T-shirt design contest inviting all Uniqlo lovers to participate in the summer T-shirt design. Kolon’s sportswear brand HEAD appointed yoga instructor, marathon coasts and professional bikers for the development of its new garments.

“Having prosumers around was the key to fulfilling various customers’ needs, and to take our products and the brand to a whole new level,” said Choi Woo-il, a Kolon team leader.

Stroller maker Fedora has adopted “social design” concept where people with babies participated in the design of an array of products including stroller, car seats, high chairs and others. “This has given us clear idea of who are our actual consumers and what they really want,” a Fedora worker said.

“It is sometimes difficult to tell whether you are a reviewer or a prosumer because you don’t really get to start from the scratch with a company and things can be a part of the big marketing plan,” admitted Jeong, a university student who said he has participated in the development of menus for an Italian restaurant franchise and a pub franchise both based in Seoul.

“But when you find that your idea has been reflected in the final product, and when you actually get to use it the way you imagined it would be, it is rewarding and you know that you are part of the value chain,” he added.

The government is also encouraging the concept of prosumer.

Energy Minister Joo Hyung-hwan earlier this month announced that the government will support the creation of “energy prosumers,” who trade electricity generated from their solar panels.

Before, solar panel owners were able to sell the leftover electricity to Korea Electric Power Corp., the state-run power generator. “New rules enable people to truly trade energy among themselves, and seek a sustainable energy generation in the market,” a ministry official said.

The policy was drawn after President Park Geun-hye declared the state support plan for energy prosumers.

The Ministry of Science, ICT and Future Planning is also gearing up to create prosumers for software development.

“We are supporting companies looking for prosumers who can share their ideas into product development from the scratch. They could be either professionals attempting to share their experiences or amateurs who really want to convey their message to the producers,” a ministry official said. 

Funding for projects

Crowdfunding has been one of the most popular ways for fledgling entrepreneurs to realize their dreams.

In contrast to the severe scrutiny of venture capitalists -- if they are lucky enough to even get a meeting -- crowdfunding is more directly headed to the consumers.

Entrepreneurs load their ideas with a picture or video clips of a possible prototype on the crowdfunding site, then suggest investments. Those who are interested in the entrepreneurial ideas fund the product as much as they like, and are the first to receive the actual products once the projects are completed.

Businessman John Kim loaded his ideas for his portable water purifier/tumbler, Ripuri, on the crowdfunding website Wadiz.kr. He asked for 5 million won, but was able to rake in 6.6 million won from 90 people, much more than his initial goal.

“The 5 million won was important seed money for the manufacturing of the products to be exported to the U.S. Because people found potential in our product they gladly financed the project,” Kim said.

“I also received a lot of feedback on the color arrangements, portability and others, which will be all reflected in the future products,” he added.

Since its launch in 2014, Wadiz has secured 200,000 users participating in more than 1,600-1,700 projects.

“Our main users are people in their 20s and 30s. They are the so-called early adopters who always venture into new territories,” a Wadiz spokesman said. “It is a win-win situation for both the entrepreneurs and active consumers,” he added.

By Bae Ji-sook (baejisook@heraldcorp.com)