The Experience Economy: Why I Can’t Sell My China

My husband and I are on a quest to downsize and get rid of “stuff” that serves no purpose in our lives. This includes our two sets of beautiful Wedgwood china that we lovingly selected many years ago. But, to our dismay, no one wants it. Not even our sounds. 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 drastically since our young days of hedonistic consumerism. And it has probably changed forever. What’s going on? Consider the following:

• According to Business Insider, millennial home ownership is at an all-time low. In fact, according to Trulia, 71% of surveyed millennials regret their purchase in the first place. They just don’t like debt and regret investing money in permanent housing. Also, they are moving to smaller urban spaces that don’t allow for “stuff collecting.” In other words, the “stuff” doesn’t matter.
• The obsession with Tiny Houses. I can count at least four television shows that promote this kind of simplified living. Personally, I’m obsessed with the idea. According to a ValueInsured survey, millennials aren’t investing in big houses. And what is even more surprising, it is the baby boomers who are most likely to buy lower-priced homes.

What’s going on? People (not just millennials) are moving towards collecting experiences on things. The “Experience Economy” values ​​more time with 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 moving towards a minimalist lifestyle. What’s even more telling is the fact that our digital world takes the place of things we needed in the past (storage for CDs, for example).

I was recently sitting at a C-level roundtable discussing this very topic, and one gentleman even claimed that the move to “experiences” is for social bragging rights. 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’re a brand like Road Scholar, you’re in pretty good shape. But what about the rest of you? Brands that listen to consumers and find opportunities among their evolving wants and needs, rather than in spite of them, are the winners today. Consider Nordstrom and its “tiny store” model that offers shopping experiences. Or Bonobos, which has created a unique retail experience where you can’t walk out with merchandise. Or even ThirstyNest, which offers personalized wine gifts to newlyweds who are interested in creating memories rather than filling a china cabinet.

So with smaller living spaces and fewer dollars spent on things, what’s a brand to 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 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 essential that you change the sales benefits of the products to reflect how the world has changed.

Is your product line evolving to reflect America’s downsizing or the experience economy? Are you moving towards products that provide simplicity, efficiency, or multiple uses? Or are you developing products that provide unique experiences and enable social bragging? A word of caution: Just because you have a bestseller today doesn’t mean it will fit your customer’s lifestyle tomorrow. Evolve!

Have you considered innovative ideas or shopping experiences with a unique twist 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 didn’t we think continuity shows were dead? No. Consider brands like Blue Apron, Birchbox, or Stitch Fix that have turned consumerism into a streamlined experience.

Unfortunately, marketing has gotten harder! But, only if you are thinking of selling “stuff”. People no longer need or want your stuff. The marketers of tomorrow will be the ones who understand this strange new world we live in and turn their products into experiences. As for my china? I’m going to change my Letgo description to: The perfect set of breakable plates for your next Greek gathering.