The Devil Shares Prada: Consumers Want Experiences, Not Products

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ANDJELIC A., The Devil Shares Prada: Consumers Want Experiences, Not Products, 29.07.2015

Type
Abstract How the Sharing Economy Is Boosting the Luxury Market.
Link http://adage.com/article/digitalnext/devil-shares-prada-sharing-economy-boosts-luxury/299725/?utm_source=Subscribers&utm_campaign=116b55c9a2-&utm_medium=email&utm_term=0_d2191372b3-116b55c9a2-416964625
Topics Business Model, Consumer, Personality, Property

Notes

"Experiences over possessions."

""Rental brands are gaining popularity, demonstrating the new luxury consumer's desire to be spontaneous, without the pressure of permanent ownership," Nicole Victor, partner and senior VP of planning at New York-based agency Rumble Fox, recently told me. She added, "As the notion of ownership of goods has changed and the desire to own goods like homes and cars has decreased significantly among younger generations, luxury brands will have to find a place in the new sharing, less acquisitive generation.""

"[T]his is what the sharing economy is about. Its main promise isn't about frugality -- it's about pushing the boundaries of customers' expectations of what a good service is."


This trend of preferring experience over possession ("Traditional luxury imagery may have been a reflection of our identity, but experiential luxury is our identity."), or - better - over ownership, has made the sharing economy a 15$ billion market in 2014. As a consequence, rental and other sharing models - in which products are offered on-demand "as-a-service" - are replacing more and more sales, even in the luxury sector. New business models are therefore taking hold.

See also RIFKIN, The Zero Marginal Cost Society.