My husband and I are on a quest to cut down and get rid of “things” that have no purpose in our lives. This includes our two sets of beautiful Wedgwood dinnerware that we have loved dearly for many years. But, to our dismay, no one wants it. Not even our children. And it’s not just me. My friends who share some gray hair are experiencing the same thing.
It turns out that the world has changed dramatically since our youth of hedonistic consumerism. And it has probably changed forever. What’s the matter? Consider the following:
- According to Business Insider, millennial home ownership is at an all-time low. In fact, according to Trulia, 71% of the millennials surveyed regret the purchase in the first place. They just don’t like debt and regret that they invested money in a permanent home. In addition, they are moving to smaller urban spaces that do not allow “picking up of things.” In other words, the “things” don’t matter.
- The obsession for Tiny Houses. I can count at least four television shows that promote this streamlined lifestyle. Personally, I am obsessed with the idea. According to a ValueInsured survey, millennials don’t invest in big houses. Even more surprising, it’s baby boomers who are most likely to buy lower-priced homes.
What’s the matter? People (not just millennials) are moving toward collecting experiences about things. The “Experience Economy” values more time with the family and more money to travel, as well as more time and money to experience all that life has to offer. Something more than things. In fact, it could be argued that we are a society that seeks to simplify, even move towards a minimalist lifestyle. What’s even more telling is the fact that our digital world replaces the things we needed in the past (CD storage, for example).
Recently, I was sitting around a C-level roundtable discussing this very topic, and one gentleman even claimed that the move toward “experiences” is for the right to brag socially. You’ve seen it: photos of food, concerts, vacations, etc. – on all social networks. Whatever the reason, the Experience Economy is here.
So if you are a brand like Road Scholar, you are in great shape. But what about the rest of you? Brands that listen to consumers and find opportunities amid their changing wants and needs, rather than in spite of them, are the winners today. Consider Nordstrom and its “small store” model that offers experiences rather than shopping. Or Bonobos, who have created a unique retail experience where you can’t walk out the door with merchandise. Or even ThirstyNest, which offers personalized wine gifts to newlyweds who are interested in creating memories about filling a china closet.
So with smaller living spaces and fewer dollars spent on things, what can a brand do? Ask yourself the following three questions:
How do my products create an experience or enrich the lives of my customers? If you sell puzzles, shouldn’t you really be selling family time, allowing loved ones to get together and enjoy each other? If it’s a pair of shoes, are they comfortable enough for someone to enjoy the concert you’re attending, or are they lightweight and easy to pack for your next adventure? It is critical that you change your product sales profits to reflect how the world has changed.
Is your product line evolving to reflect America’s downsizing or the experience economy? Are you moving toward products that provide simplicity, efficiency, or multiple uses? Or are you developing products that provide unique experiences and allow for social bragging? One caveat: Just because you have a best-seller today doesn’t mean it’ll fit into your client’s lifestyle tomorrow. Evolve!
Have you considered ready-made ideas or shopping experiences with a unique touch that your customer will appreciate? I’m sure there was a time when we could have laughed at brands like Bonobos, but who’s laughing now? And don’t we think the continuity programs were dead? No. Consider brands like Blue Apron, Birchbox, or Stitch Fix that have turned consumerism into a streamlined experience.
Unfortunately, marketing has gotten more difficult! But, only if you are thinking of selling “stuff”. People no longer need or want your things. Tomorrow’s marketers will be the ones who understand this strange new world we live in and wrap their products in experiences. As for my porcelain? I’m going to change my description of Letgo to: the perfect set of flimsy plates for your next Greek gathering.