More of Less Stuff

There has been a fair bit of conversation lately on the trend of living with less.  It seems consumers are over-fatigued with consumption.  I don’t think it’s just the economic downturn and a need to economize either.  It is certainly part of it, but more consumers feel a greater need for ‘responsible’ consumption.  Consumers are making purchases with a new awareness of their global impact, and trying to moderate their own desires to avoid the presumption of treading on the welfare of others.

The latest trends in housing point to downsizing not just because of economic factors, but also to make the “right statement.”   Sales for certified pre-owned luxury cars are brisk.  The “smart” thing to do is buy a two or three year old used luxury car instead of flaunting the latest model right now.  This certainly is a 180 degree turn from a few years ago when products like Bling H20 bottled water that came embellished with Swarovski crystals hit the market.

Consumers are also downshifting, which involves people voluntarily accepting a drop in their income in order to rebalance their lives - often in order to regain control over time and to improve their personal relationships.   Research suggests that in the UK, 20-35% of adults aged 30-59 have downshifted and resulted in an average income fall by 40%.  In a US study, 19% of people from across social classes had voluntarily changed their lives and made less money (http://www.citizenrenaissance.com/).

Brands can leverage this new frugality to their competitive advantage by actually enabling the concept of simple living in their marketing and social-networking efforts.  This may sound counter-intuitive to marketers who want to promote more consumption.  Patagonia in an effort to simplify and cut environmental impact dropped 30 percent of its clothing line in its most recent catalog without a negative effect.  Last fall subscribers had a choice of five ski pants, now they may choose between two.  The two designs contain all that Patagonia has learned about design and the best available coatings for weather protection.  They felt the other three pants offered were unnecessary and did not offer any extra value.  Kia, the Korean car maker, promoting its Sedona model in the United Kingdom, attempted to differentiate itself from competitors by encouraging walking instead of driving for short trips; not your typical car company marketing tactic (http://www.greenbiz.com/feature/2008/12/22/taboo-talk-buy-less-stuff).

Brands that continue to innovate new processes to minimize environmental impact, tout their products durability/sustainability, and focus on the utilitarian connections of their products will reflect the current consumer mindset and stand to benefit the most in the near future.

Digg

Stumble Upon

Del.icio.us

Buzz