DDB Influences 01.17
January Edition.
Welcome back to DDB Influences. Our first issue in 2017 comes with a topic everyone of us is more or less confronted with: Lessness. From design in our everyday surroundings to a state of mind in terms of consume. Nina Rieke brings her thoughts to paper (respectively screen) in an inspiring read that examines a trend that is by far more multifarious than its name seems to augure.
How we consume: is less truly more today — or more still more?
I was recently invited to partake in a podium that aimed at answering the question: „Are we living happier with less?“. And aside from my personal musings on this questions I thought it might be a good idea to dig into this request with a bit of professional attitude. Look at our society as a whole. And as we can see a trend about „Living with Less“ — being expressed in many ways — we can also see a strong uphold on consumption in general.
Interesting observation — the need to reduce, the influence of “lessness” was at first visible not in consumption data — but in design. How things are build in order to please us and fit into our lifestyle. Not absolute reduction, but the refraining from the ornamental. Anything “too much”. Our smartphones are a strong proof of this.
But it is creeping into society in a broader sense — and brands have to find answers to the need to reduce and buy less. Or even nothing at times. Like the initiative of “Buy Nothing Day” in November shows — an initiative that by now has gone global. On this day people in 45 countries are asked to stop consuming for 24 hours. They are asked to question their consumption patterns — and look for more sustainability and fair consumption.
What’s the influence?
There are a lot of initiatives that are questioning how we will live in a
“post growth economy”.
But as a society we are currently not refraining from consumption. On the contrary: we love to consume, more than ever. Abstinence is nothing to be seen at first glance when looking at data.
Looking at consumption statistics (e.g. GfK Konsumindex) we do not get the impression that people consume less. In 2016 the German economy grew stronger than expected (1.9% vs. prognosis 1,6%). One reason people love to shop is due to low unemployment and low interest rates. And this is also upscale consumption — as people strive for more luxurious premium goods. 14 million Germans agree with the statement “luxury makes life better” (up from 2010: 11 m people). The luxury market is growing globally. (up from 147 to 253 b $ in just 10 years from 2005 to 2015). And specifically the Asian market is embracing consumption. And 46% of the global luxury revenue comes from Chinese consumers.
Looking at data, a tendency of “lessness” is so far not mainstream. But it is a phenomena non the less that applies to specific social groups: the ones who tend to ask for more meaning — and are questioning current consumption patterns. This mainly applies to western societies, more mature consumption and highly saturated markets. It applies more to well educated and well off social groups as they can allow themselves to re-evaluate their behavior, not having to abstain but making it a deliberate choice. They have bought all they wanted — are still left unsatisfied, now going beyond classical consumption behavior.
And there is data to prove it, specifically studies from the luxury segment give proof points. In more heterogenous societies a wide interpretation of luxury becomes visible. And specifically more explorative, younger and progressive social clusters see abstinence as a new form of luxury for themselves.
The Swiss based Gottlieb Duttweiler Institute has a good description of four different phases of Luxury consumption. A typography that can be applied to consumption in general.
- Infantile phase —where it is about „more is more“. YouTube „Haul Videos” are a clear proof of this.
- Adolesence phase — „Not just how much, but what“ (a stronger quality focus — as German retailer Manufactum is proclaiming: “they still exist, the good things”.)
- Maturity phase — „Experiences, not things.“
- Seniority phase — demonstrative refrain from consumption and owning things. I can afford to not own it. The share economy is a clear proof with concepts like DriveNow or airbnb.
How are brands and advertising reacting?
Brands should find answers to people who are looking for more meaning and less stuff to buy. The ability to focus on brand values beyond physical offering is another starting point from where to act on the trend of a re-evaluation of consumption. Many categories can even profit of this trend. And not just the ones that are offering experiences rather than physical goods. As minimalism not necessarily means to buy nothing, but rather less and more consciously. Looking for goods that are more durable or offer more than the purely material. Making consumption something more conscious — in all three relevant stages that go beyond the pure “more is more”.
Therefore brands are valued that are build around a more conspicuous way in their production already.
Luxury brands in general need to react on the change in luxury perception to stay luxurious. Exclusivity and focus on craftsmanship will drive the category in the future.
A time intensive production process might play a role — so does craftsmanship. One example are the Hermès scarfs that are made by hand and can not be bought online.
The British retailer Selfridge takes the topic of consciousness to a new level: offering their shoppers the opportunity to use a “Silence Room” to find peace and take a break from the daily hassle and shopping craze.
Brands beyond the luxury category are taking this on as well. Specifically around Christmas seems to be a good time to promote ideas such as human connection and the value of time itself. Two German retailers have raised the topic of “giving time” for Christmas instead of something else. E.g. Otto — Zeitgeschenk as well as EDEKA with “Zeitschenken”.
The Spanish Christmas Lottery “El Gordo” is another example:
The German coffee retailer Tchibo also promotes the value of giving to others during Christmas with their “Christmas Wonders”, showing how the retailer and their customers are giving to the ones in need.
Aside from Christmas brands find ways to surf the wave of non-consumption. Outdoor company REI showed this during BLACK FRIDAY — promoting to “opt outside” instead of shopping on- and offline. Closing their stores on the revenue driving day, giving their employees the day off as well. And turning this into a PR relevant story that let them use the trend to their own advantage — celebrating nature and the outdoors and the brand values beyond their outdoor goods. One strong example on how brands can use “lessness” for their advantage.
Looking at brands like ALDI or Sparkasse in Germany we also see a strong focus on simplifying things in order to enjoy life more.
Natural cosmetics brand Weleda is promoting consciousness in the everyday — and how to stop and be aware of things and life more often. Giving hints on how to lead a more conscious life can be found on their YouTube channel and the homepage as well.
KitKat uses their brand claim of “Have a break” to initiate these breaks in real life: installing No-WiFi zones in Amsterdam, helping to remove one self from permanent digital noise.
Not all initiatives are fully in line with the brand or business they are coming from. H&M asking us to consume their cheap fashion more consciously seems more like a PR gig, but shows that even they aim at using “lessness” to their advantage. Together with artist M.I.A. they promote “World Recycle Week”. Asking customers to get rid of their unused clothing and bring them to a H&M store in exchange for a voucher.
Summing it up: no need to be afraid people will refrain from consumption in 2017. But especially upscale, well educated western consumers look for value beyond the obvious. For brands that support their conscious buying behaviour in many ways. Giving them better reason to buy more than a product but an idea that suits with their values and beliefs.
By:
Nina Rieke // Chief Strategy Officer // DDB Germany
