New Generations Don't Buy the Same WayByValentina Iorga
As I grew up, owing things was not only a measure of ones wealth, but also a way to gain social recognition or to become opportunistically rich (by buying properties and assets and selling them a few years later, at a much better price).Commerce flourished while people constantly bought and the only mission of any trader was to fill in the shelves with products and be more visible than competition.
But the overall consumption decreases and is not because people stopped spending their money. They just spend it in a different way.
My friend Dan is in his early 30's. He has a very energy lifestyle, is present at all fashion events, moves around by public transportation, lives in the center of the city and changes accommodation every 2-3 years.
I was speaking to him the other day and he was saying he could never see himself buying an apartment. I asked him how he feels knowing he would never really own the place he lives in and he answered me:
"I just don't. I don't feel the need to own. I just enjoy all the benefits of the apartment, without buying it".
Studies show that millennials, commonly known as 1980s-2000 born, have a low interest in ownership compared to previous generations. The causes could be multiple: from the financial crisis, to smaller income or an increase in the time spent in the parent's house, or even the fast innovation pace, which shortens products' lifecycles.
But the main reason is that millennials now have alternatives to ownership. They can use car-sharing services without owning one with Zipcar, they can see movies without buying them on HBO Go, live in a rented house or take a free course on Coursera without paying thousands of dollars on education. Services like Uber, Airbnb, Popcorn TV, change the premises when buying things because they enable using a product without actually owning it.
All these new companies are also shaping the way millennials consumer buy products. Owning is easily replaced by "pay per use" and "try for free" in a wide variety of fields: software, books (Bookster), education etc.
Our real challenge, as marketers is not to change consumer behavior (which would actually be one of the toughest challenges on earth), but to understand that ownership is no longer an important reason to buy. To change the way we deliver our products, from commodities to relevant, insightful services.
Her website is http://www.valentinaolaru.ro
Article Source: http://EzineArticles.com/
Copyright © 2015 Valentina Iorga All Rights Reserved
|
