The Era of Competition is over, and The Era of Clusters is opening

In the past, companies were in fierce competition to sell similar products and services. But things have changed. Now, they must form clusters to settle consumers’ infinite wants.

How can companies satisfy the desire of consumers that has become more complex than before?

desire of consumer becomes infinite
Source: Gettyimagesbank

Business used to be all about competition. In the past, everyone was busy feeding their needs to survive. Every company was also busy churning out cookie-cutter products and services in large quantities to outrun their competitors. As we enter the Age of Plenty, business is changing. People consume for their wants—fun, diversity, and style. Now, companies face a new task: how to satisfy the desire of consumers that can grow to infinity.

The evolution of desire from needs to wants does not only take place in the world of consumers. It can be found in the world of e-commerce as well. To put things into perspective, an online bulletin board is a sufficient enough platform where buyers and sellers can meet to do business. In fact, in countries where e-commerce is still in its infant stage, transactions often take place on social media pages and messengers.

Once buyers and sellers become satisfied with the basic needs, however, they find themselves wanting more. They want support for various payment methods and trustable ways to verify a seller. They also want recommendations that best fit their specific taste so that they can save time for searching. That is why Cafe24 has advanced its e-commerce platform to provide more complex features rather than simple bulletin boards for buyers and sellers. Nevertheless, it still does not satisfy all possible wants.

As such, it is difficult for a single company to satisfy all the demanding desires of consumers alone. So, companies began to band together – ushering in the Age of Clusters.

Cafe24’s efforts to boost the growth of e-commerce clusters

Age of competition is gone and age of clusters is opening
Source: Gettyimagesbank

A cluster can be defined as a small group of people or things that are geographically situated close together. Companies, colleges, labs, financial firms, and think tanks usually form clusters to create a synergy. But, in today’s hyperconnected world, physical proximity is losing its role. Clusters can now be defined as a group of companies whose functions are connected to create a synergy.

In a cluster, companies are not in competition but partnership for mutual growth. If we take an example from the e-commerce sector, partners participating in a cluster each have an area for expertise. Those that specialize in platform, payment, delivery, marketing, and other businesses each advance in their respective areas to satisfy the evolving desire of consumers. Then, each specialty area is connected and combined to meet an infinite series of consumer wants.

As a partner engaged in this e-commerce cluster, Cafe24 has assumed the role of creating a good platform that strengthens partner connection. To do this, Cafe24 places a priority on scalability and flexibility so that various companies can be connected and easily add new features. Even if it takes little resources, a platform that requires total redevelopment just to add new features cannot be said to be well-designed for the long term.

I believe that Cafe24’s fixation on long-term growth is what will drive the company to become the pillar of the cluster. Further, this e-commerce cluster formed by Cafe24 and its partners will grow further ahead to become the pillar of the global business world.

Jaesuk Lee

Chief Executive Officer (CEO)

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