As the adoption of minimalism and more sustainable lifestyles continues to grow, under-consumerism has emerged as a significant “trend” . People are increasingly opting to buy less, focusing on quality over quantity, and prioritising experiences and values over material possessions. However, this shift towards under-consumerism is not just a fleeting trend; it’s a profound change in consumer behaviour with far-reaching implications for businesses.
In this article we explore the impact of under-consumerism on businesses, and strategies companies can employ to adapt to this new reality.
“People want to lower the quantity of clothing they’ve purchased and focus on sustainable, and mindful purchasing habits,”
Agus Panzoni, Depop Trend Specialist for The Guardian, 2024
The Impact of Under-Consumerism on Businesses
Consumer are not longer willing to engage in society’s pressure to buy, which is leading to an impact in market share. This shift presents both challenges and opportunities for businesses, particularly in sector like retails and manufacturing.
As consumers buy less, they often expect higher quality and longer-lasting products. This expectations can significantly affect businesses that rely on high turnover of goods, resulting in a decrease of growth and profitability.
However, while under-consumerism can be challenging, it also present opportunities for innovation. Brand loyalty is increasingly tied to company’s values and consumers are more likely to support businesses that align with their ethical values and offer high-quality, durable, and ethically produced goods, which opens a gap for more refined products and services that brands can integrate.
How Businesses Can Adapt to Under-Consumerism
To thrive in a world of under-consumerism, businesses may need to rethink and shift their strategies, whilst embrace the changing landscape, as under-consumerism often comes with heightened consumer expectations for longer-lasting products. Few action to undertake now include:
Lead with Transparency: Supporting a better reporting, brand transparency allows consumers to make more deliberate choices about their purchases. However, it will be important for brands to underlay an “infrastructure that combines agreed standards for better ESG data collection and sharing.” (Deloitte, 2023)
Circular Economy Practices: Using eco-friendly materials, reducing waste, and minimising the company’s carbon footprint is not enough for the core consumers anymore. With 76% of consumers considering using a repair service, businesses should adapt their business models and address the wider issue within the industry. Services such as repair, maintenance, or customisation can extend the life of products and create ongoing revenue streams.
Shift to Quality over Quantity: The model of producing larger volumes of products need to be replaces with a slower and more sustainable approach that focuses on high-quality, durable goods that offer long-term value.
The rise of under-consumerism marks a fundamental shift in consumer behaviour that businesses can no longer overlook. By embracing transparency, adopting circular economy practices, and prioritising quality over quantity, businesses can not only navigate this new landscape but also build resilience for the future.
Articles that address this shift and its’ impact on luxury brands across the global fashion market:
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