The Lure Of Shopping

American Demographics, July 1, 2002

Byline: PAMELA N. DANZIGER

What does the future hold for companies in the business of manufacturing, marketing and selling discretionary products - those things that people desire but don't need? How can new insights about why people buy things they don't need help companies sell more of their products? How can companies divine the future for the sales of discretionary products and develop plans for action that will increase sales and build market share? Tracking trends is one method many businesses use to foresee the future. Here are the major trends on the horizon that will have the strongest impact on discretionary product manufacturers.

A SHIFT FROM BUYING THINGS TO BUYING EXPERIENCES

Part of our popular cultural mythology says that when people reach middle age, they undergo a personal identity crisis, the "midlife crisis," that often is played out in the consumer marketplace. Stereotypically, a man may address his midlife crisis by buying a little red sports car or, more sinisterly, trading in his middle-aged wife for a new, younger model. A woman may get a face-lift, dye her hair, find a younger man or, empowered by "menopausal zest," find new energy to pursue a career or hobby. When grandchildren come along, the new grandparents may shower presents on their grandchildren to make up for some of the inadequacies their children may have experienced because money was tighter when their kids were growing up. This is the life stage that the Boomer generation is now approaching en masse, and it will change the fortunes of many companies that sell and market to people who buy things they don't need.

In their middle years, the members of the Baby Boom generation will face the inevitability of their mortality. In doing so, they will try to make up for lost time and the things they may have missed, by directing their energy and money toward experiences and away from the continued acquisition of material things. With the attitude of "been there, done that" in buying more things, Boomers will turn away from a consuming focus on things, to a hunger for experiences and personal development. Service industries that satisfy the mature Boomer's craving for personal enhancement will fare well after 2010. These include travel providers, especially adventure travel modified for aging Boomers' health and fitness levels; health and beauty spas; and colleges and adult-education experiences, including training such as cooking or language schools.

As Boomers pursue new experiential passions, they will need tools, equipment and accessories to support their new pursuits. Discretionary product providers can position themselves for success by offering new products to enhance Boomers' experiences and adventures. Durable goods providers, such as automobile manufacturers, will fill such a need, as will those who manufacture and market sporting goods, personal care items, books, housewares and entertainment. For example, Boomers will need new recreational vehicles to take them on their new adventures. I predict they will eschew the big, bulky, luxurious RV models so admired by today's mature generation. Instead, they will favor more simplified, environmentally friendly models that can take them off the highway. Think modified VW bus concept crossed with an SUV: equipped with bed, kitchen and bath, and with a powerful engine and four-wheel drive.

Since the future focus in consumer behavior will be about buying the experience, manufacturers and marketers must think beyond the features and benefits of the product they are selling, to how that product supports or enhances an experience. If you came of age in the 1960s, as I did, you will remember the strong antimaterialism ethic running through the youth culture. At the same time, 1960s youth hungered after new, mind-opening experiences. Some members of the Boomer generation self-destructively turned to sex, drugs and rock 'n' roll to fulfill much of this craving for experience. I sincerely hope that Boomers learned from their youthful excesses, as I foresee that they will participate in a second adolescence in their senior years.

Some Boomers will turn away from the pursuit of materialism and excessive consumption and save their money for adventures. New and exciting experiences in their second adolescence could include climbing Mount Everest or at least trekking to base camp. They might decide to travel to China, hike the Appalachian Trail, learn to cook in Paris or get an advanced degree in English literature. Some may take up painting or photography, set off cross-country on a Harley, or learn to fly, skydive or balloon. Closer to home, others may take up a second language, join a theater group, form a "garage" band, or, like me, take piano lessons after 30-odd years without touching a keyboard.

CONSUMERS WILL CRAVE REALITY

Our society is undergoing a digital revolution. The Internet is playing a bigger role in our lives. Schoolchildren today learn about computers right along with their lessons in reading, writing and arithmetic. The Internet is also playing an increased role in the commercial side of consumers' lives. In 2000, roughly $27 billion in sales were conducted over the Internet. While this is just slightly less than 1 percent of total retail sales of $3.1 trillion, it is a significant contribution to the overall economy.