81% choose experiences over goods

determine how you can capitalise on the experience trend

This is the second of 5 thoughts addressing social trends in Australia. To avoid repetition, I have avoided trends associated with social media, content marketing, and digital marketing to focus on interesting trends that many may not be aware of.

A recent Australian study found that 81% of Australian millennials choose to buy ‘experiences’ ahead of ‘goods’. There is also evidence that other sectors are opting for experiences over goods.

Research suggests that experiences are increasingly viewed as yielding greater utility than goods in most sectors of the community. Indeed, this is one of four trends contributing to the decline in Australian retailing. The other factors are:

  • The influx of international brands offering a superior product
  • The growth in online shopping from local and overseas sites
  • The current economic environment and the increasing cost of utilities
It is likely that the last of these factors is a passing trend. Conditions should improve, and utility prices should eventually stabilise. However, the other trends will continue – although the first will only impact on local retailers if they continue to offer such a poor customer experience.

The trend towards ‘experiences’ and away from ‘goods’ is likely to increase and will almost certainly impact on retailing more and more in the years ahead. This trend is evidenced by a tendency of consumers to:

  • Take a loved one to a restaurant ahead of buying a birthday gift
  • Have a holiday in Europe instead of buying a new car
  • Learn to surf or play golf instead of buying new clothing
Most consumers have a limited budget and are increasingly allocating that budget to sharing an experience, one that stays with the participants well beyond the experience itself.

We can all recall saying to a friend or loved one – ‘remember the time we …..’. By contrast, how often have any of us reflected on a mobile phone of new pair of shoes we purchased 3 years ago?

In 2018, determine how you can capitalise on the experience trend

Every year – put the facts ahead of intuition and guesswork.

Core sources of statistics – n-insights, ABS, Integrate, M,  We Are Social, Eventbright, McCrindle, AR Pos, HBR, and Deloitte,

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