WELCOME TO POST-CONSUMER WORLD
Brands and retailers alike, whether they operate in physical or virtual spaces, need to communicate with buyers seeking authenticity
Globally, many buyers are moving into the age of “post-consumerism”, a phenomenon that will compel many retailers and brands to change the way they position themselves to reach their target customers. Post-consumerism essentially says that material goods and their prices do not define the individual, which is a direct reaction against decades of corporate marketing and advertising that have associated certain products and services with “enviable lifestyles” to appeal to their target demographics. As post-consumerism grows throughout the world, it is changing the traditional demographic classifications.
Trendwatching.com defines status symbols in this new world as being more transient in nature as they place value on things such as experience, authenticity, connection, health, ethical, and sustainable lifestyles. These markers of post-consumer status are available to all people, regardless of age, income and location.
Technology and globalisation are the key driving factors of this trend from both a producer and consumer aspect. Production over the past few decades has improved rapidly in terms of quality and quantity, aided by the precision of computer technology to a point where quantities of scale have brought down the price. Consumers do not have to pay a lot of money to get quality any more, and options are plentiful.
On the flip side, consumers are more exposed to the world with information at their fingertips. People are seeing how different, or sometimes completely identical, they are as a global society. This realisation, combined with younger generations’ distrust of corporate marketing, is resulting in people looking to new ideas to define their identity and lifestyle.
As consumers search for authenticity, the story behind a product is becoming as important as the product itself, because more people look for ways to represent their unique lifestyle and make a statement about their identity. For example, many post-consumers may choose a local organic grocer even if its products are a little more expensive, because they identify with and support the healthy, sustainable and environmentally friendly farming practices that such a business promotes.
Fashion people are looking beyond just cost as well. Unique brand styles with a creative idea or socially responsible approach to production may be more important than how much the product itself costs.
Regardless of category, the items this new breed of consumers choose must be authentic to their core value system and identity, and the brand name of the item they buy must also be authentic to the same identity. It is not that people are not willing to spend on luxury items that make a statement about their social or economic status, but the corporate values and identity of the brand’s company must also make a statement that the buyer identifies with, agrees with and supports.
The proliferation of information through mobile technologies has led to new and creative companies that focus on niche markets. And companies that understand how to reach customers that connect with the purpose and brand of their product can instantly become successful.
As people look for ever-increasing specialty items, new markets are emerging for those who share the same interest in these specialties, especially when they can combine the core values of the new status symbols such as authenticity and experience. One area where we are seeing this with growing frequency is the food and beverage industry, where chefs and mixologists continually innovate with speciality menus that are authentically crafted to create a new culinary experience.
One example of the trend in Thailand is the growth of craft beers and coffee. Consumers are buying it to experience something new and authentic that they can then share with their friends because it is not something that can easily be found in other countries.
Now that consumers can buy goods online at increasingly discounted prices, and from anywhere in the world, it is changing their reasons and habits when shopping at retail centres. Consequently, retailers — as well as brands — are being forced to adapt or become obsolete.
If we argue that unique and authentic brands and customer experiences are what is important, then it is personalisation and creative retail experiences that will drive demand for future products and services. Given this, it is no surprise that a recent research study conducted by CBRE of global retailing found that the “coffee and restaurants” and “specialised clothing” categories were experiencing the greatest growth in every region.
At a fundamental level, big and small companies alike focus on making products and selling them; however, the increasing speed at which the modern consumer gains information has decreased the shelf-life of product trends and has resulted faster-changing status symbols among post-consumers. The idea of the product, its backstory and authenticity, will create a brand identity that is just as important, if not more important, than the brand name. Retail centres and consumer brands will need to adapt and learn to create value propositions that the post-consumer can identify with.
In the past, conglomerates operated in a sellers’ market where the seller told the buyers what was in fashion, what should be meaningful and what status should look like. Today, with reduced barriers to entry, global surpluses of most types of goods brought about by improved production efficiency, and people’s desire to be authentic in a global consumer market, we are entering a buyers’ market where consumers now determine what the status symbols are going to be — based on what is meaningful, authentic and depicts their unique identity best.
Brands and retailers will no longer be able to rest on the classifications of consumers of the past and must adapt their brands and experiences to meet the ever-changing preferences of the integrated, informed and highly personalised consumer of the future.