In his presentation on the "experience economy" at the 74th International Retail Summit, Avantgarde Group CEO Marc Schumacher highlighted the extent to which consumer behaviour has changed. The state of permanent crisis seen in recent years has ushered in a phase of "weaning". Schumacher states that consumers are questioning their routines and are increasingly focussing on well-being and saving time.
Reduced attention spans
He continues by saying that this change is also reflected in the wishes and expectations of customers. "Our consumers have evolved more in the last three years than in the 30 years prior." Digitalisation and the associated constant availability of content on platforms such as TikTok have led to a dramatic reduction in attention spans – from 2.5 minutes to just 45 seconds.
Loneliness and the need for community
Schumacher also addressed the "loneliness economy". Many young people have been adversely affected by increasing levels of isolation. Quoting a CNN report, he reported that 61% of young adults experience serious feelings of loneliness. Schuhmacher explained that there is already a "rent a friend" service in Japan where people can hire a friend for USD 25 per hour to counteract loneliness. Many people are spending more and more time at home. This triggers a "comfort fatigue", which increases the longing for community and special experiences outside of one's own four walls.
NOWism and genuine feelings
The need for community is also reflected in consumer behaviour: according to a study by Horizon Media, 62% of young adults prefer products that offer them access to a community. According to Schumacher, it's no longer just about buying things, but about the feeling of being part of something bigger. "Some 70% of people prefer to spend money on experiences rather than material things," said Schumacher. He explained that this so-called "NOWism" – the focus on the moment and the experience – is leading to a dematerialisation of status. Exclusive experiences, unique moments and belonging to a community now supposedly take priority. As an example, he cited Taylor Swift's "Eras Tour", which created a global phenomenon that went far beyond music.
Offline experiences like these are becoming increasingly important because they offer consumers something that online shopping cannot – genuine emotions. "People are bored," explained Schumacher. He cited the study "The Age of Re-Enchantment" by Wunderman Thompson, according to which 75% of respondents said they "want to feel something to feel alive". Brands must therefore find ways to convey intense emotions – and this is precisely where there are opportunities for bricks-and-mortar retailers, he stated. As an extraordinary experience, Schumacher made reference to a Gucci show in which 68 identical twins walked the catwalk. This moment captivated the audience not only due to its visual perfection, but also because of the impressive combination of staging and emotion, which served as a perfect illustration of the multi-sensory approach.
Artificial scarcity as a strategy
Artificial scarcity can also make products more desirable, such as the limited availability of Apple devices. The Avantgarde Group CEO predicted that access to experiences and products will be limited in the future in order to create a feeling of exclusivity and increase demand. For brands, this means having to put a great deal of effort into creating unique experiences.