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26-01-2019, 10:29 AM
There are some interesting views from today's papers discussing the present and future of retailing and consumption:
Yet more broadly, lifestyle changes are seeing us moving away from the consumer model that has dominated post-war capitalist economies. Buying more and more things as a source of identity and meaning seems to be gradually but consistently falling out of favour. People are increasingly interested in experiences instead; the priority is making and sharing memories - interacting with other people and places, attending events, undertaking adventures and so on. We could be talking about the era of the post-consumer.
https://www.businesstimes.com.sg/consume...from-shops
"Remember there was that whole thing, 'Millennials don't love luxury'? They looove luxury!" Ms Wainwright said. "They just couldn't afford it. We're a good entry point for them."
https://www.businesstimes.com.sg/consume...-pre-owned
The decline of traditional retailers in developed markets in recent years has led some to conclude a bleak future. I find it difficult to believe that humans have evolved to an extent that -- if they possess the resources to do so -- will choose to not consume. It is possible that people may choose to consume less, but eventually the wealth that is being accumulated will be exchanged for certain goods and/or services. What else are people going to do with all the money that has been earned? The present ebb in consumer spending may have more to do with anaemic economic growth on a national level, and growing income/employment insecurity -- a consequence of continued liberalisation of economic markets -- at the individual level.
As some retailers continue to vacate its premises and retrace its earlier over-expansion -- thereby driving rents lower -- the remaining retailers will benefit from lower operating expenses. When retailers can offer consumers a more palatable price-value proposition, and economic growth creates higher levels of economic prosperity/security at the individual level, sales will return.
It could be some time before Kingsmen's customers are willing to spend (more).
Yet more broadly, lifestyle changes are seeing us moving away from the consumer model that has dominated post-war capitalist economies. Buying more and more things as a source of identity and meaning seems to be gradually but consistently falling out of favour. People are increasingly interested in experiences instead; the priority is making and sharing memories - interacting with other people and places, attending events, undertaking adventures and so on. We could be talking about the era of the post-consumer.
https://www.businesstimes.com.sg/consume...from-shops
"Remember there was that whole thing, 'Millennials don't love luxury'? They looove luxury!" Ms Wainwright said. "They just couldn't afford it. We're a good entry point for them."
https://www.businesstimes.com.sg/consume...-pre-owned
The decline of traditional retailers in developed markets in recent years has led some to conclude a bleak future. I find it difficult to believe that humans have evolved to an extent that -- if they possess the resources to do so -- will choose to not consume. It is possible that people may choose to consume less, but eventually the wealth that is being accumulated will be exchanged for certain goods and/or services. What else are people going to do with all the money that has been earned? The present ebb in consumer spending may have more to do with anaemic economic growth on a national level, and growing income/employment insecurity -- a consequence of continued liberalisation of economic markets -- at the individual level.
As some retailers continue to vacate its premises and retrace its earlier over-expansion -- thereby driving rents lower -- the remaining retailers will benefit from lower operating expenses. When retailers can offer consumers a more palatable price-value proposition, and economic growth creates higher levels of economic prosperity/security at the individual level, sales will return.
It could be some time before Kingsmen's customers are willing to spend (more).