Experience Economy Is the New Cool
In the recent past, a tectonic shift is observed in millennials' spending behavior. They are now prioritizing experiences over possessions. They are ready to open their wallets for having hands-on experiences rather than buying a product. Generation Y is often romanticized for their passion for exploring something new. They are no longer insane about materialism as compared to their previous generations. They value experience more than buying material goods. It is a good stereotype related to millennials.
Researches have shown that happiness derived from buying products is short-lived. Millennials have switched to happiness through experiential consumption like going to concerts, travel, dining out, or festivals with friends. This is not only long-lasting but also preferential among them. They are not going crazy to equate material wealth with happiness.
Young people today are restless to spread their wings. They value living a life of purpose and channel their attention to explore meaningful experiences that help them build their authentic self. Their experience has become more global and diverse, connecting them to infinite possibilities, eventually satisfying their drives to make a positive difference.
Everyone has a camera in their pockets with a stock of applications to amplify their experience in photography. Not to amaze that the "experience economy" is booming into the mainstream is also because of social media. Undeniably, we are more influenced to book a vacation faster by seeing pictures and stories of our family and friends enjoying beaches and mountains rather than wishing to get a break from 9 to 6 jobs. Other's experiences stimulate our desire to live up to the same. Whether this behavior of envious comparison is healthy or not is debatable but, these patterns are easily observed.
Millennials are now inclined towards saving for contingencies and retirement needs. They don't run after status and wealth symbols. They consider experiences more significant than 'things' and believe in quality-of-life choices over the acquisition of tangible goods.
Entrepreneurs have to bake experiences in their brand for this "rent-no-buy generation." The onus is on the brands who have to revise their game plan and invest in experiences that their clients want to live up to. The experience economy is the new cool. It is all set to be the most lucrative way to tap into. India, where 65% of the population is under the age of 35, is a land of millennials. Considering the fact we can say that indeed the "experience economy" has a bright future here.
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