SEMPLIFIED CONSUMERISM

THE SIMPLIFIED CONSUMERISM

Francesca Citter

Page 1 of 21

HYPOTESYS

3

DRIVERS: WHAT IS HAPPENING?

5

THE PARADOX OF CHOICES AND THE SLOW MOVEMENT

5

IMPACTS: WHAT IS CHANGING?

8

ART ENVIRONMENT:

8

IN-STORE PRODUCT OFFER:

9

FOOD INDUSTRY: 1.

10

2.

11

BEAUTY INDUSTRY:

12

TECHNOLOGY INDUSTRY:

13

RECOMMENDATIONS:

14

WHO?

14

WHAT and HOW?

16

TO WHOM? LIMITATION BIBLIOGRAPHY:

Francesca Citter

10

18 19

Page 2 of 21

HYPOTESYS The world we live in has become increasingly tangled and public trust in traditional institutions and brands has drastically decreased (LS:nglobal.com, 2016). The rise of technological devices and connectivity has fuelled what already is a rapid-paced environment that constantly overwhelms people with commitments and busy schedules (warc.com, 2016). A widespread acknowledgment that “less is more� has overtaken the general assumption that a maximisation of choices signifies a better citizen wealth-ware.

In this climate, Millennials fight to promote a new set of values redefining success. In fact, 87% of them believe that success is not just something related to financial wealth but it concerns more meaningful aspect of life (deliotte.com, 2016).

Shared ethic and values make them feel closer one another and brands are adapting to this new mindset by delivering conscious and meaningful experiences (LS:NGlobal.com, 2016).

Francesca Citter

Page 3 of 21

Millennials cite a strong alignment of values and share online content to give a better sense of who they are and what they stand for (businessinsider.com, 2016).

They feel on their shoulders the responsibility of a sustainable future as they are no longer leaders of tomorrow, but increasingly, leaders of today .

In this climate, brands apprehended the change and are reinventing their own rules in order to align with current values and needs. Vibrant concept stores, revisited product ranges where transparency on products’ ensures customers’ uncertainties (verdict.com, 2016).

In the light of this situation, Simplified consumerism (SC) concept bridges together a highly digitalised retail environment to a restricted product range. SC helps customer’s decision making process by reducing the number of available options and at the same time increasing their quality. It wants consumer to be informed about the products they buy and promotes a new type of sustainable fashion: slow fashion. With a strong focus on production-transparency, SC helps to build brand’s loyalty and customer retention.

Francesca Citter

Page 4 of 21

DRIVERS: WHAT IS HAPPENING?

THE PARADOX OF CHOICES AND THE SLOW MOVEMENT Millennials are constantly confronted with big questions concerning their identities and life choices.

There are too many option to chose from and this applies to all areas of life: work, studies, lifestyle, clothes, brands, an so on.

Life is a matter of choice. Barry Schwartz, author of “The paradox of choice” (2005) explains how the redundancy of available choices instead of ease people’s life, it makes it more complicated and exhausting. Indeed, abundance of choices has negative effects on people: 1. It produces paralysis and decrease the level of engagement in making decision: by reducing of three fourth the amount of overall options, the amount of

(marketoonist.com, na)

people who make a decision increases by 27%.

2. It leaves on people a perpetual sense of dissatisfaction: the fact that there are so many options endues people to think about all the positive features of the options you did not pick and this makes consumers less satisfy with their choice. Also, more options mean lead people with higher expectations about how good those options will be.

As a consequence, people are looking for simplified options: between 10% and 23% of consumers are willing to pay for simpler experiences and interactions (simplicityindex.com,2015) .

Francesca Citter

Page 5 of 21

The confusion experienced on a personal level is direct reflection of the chaotic society we live in. Traditional institutions have lost their authority and (mis)led chaos among citizen (worldeconomics.com, 2016) by fomenting political, economics, and environmental uncertainties. Millennials feel betrayed by organisations whose “culture of quarterly earnings hysteria is totally contrary to the long-term approach needed� (businessinsider.com, 2016). Industries are ruthlessly pursuing profit with no consideration to the

(bbc.com, na)

damage they cause to the environment and society (LS:nglobal.com, 2016).

The fashion campaign at Greenpeace in Germany, shown that the vast majority -16 out of the 19 brands assessed- is not committing on more sustainable production and are unclear on transparency issues or have failed to eliminate toxic chemicals. Few

(BBC.com, 201)

companies such as Nike failed all three of the categories accessed (sustainablebrands.com.2016).

The profit-driven businesses are far from Millennials’ mentality and this discrepancy of values and ethics is the main reason behind why loyalty to brands is highly

(greenpeace.com, 2016)

rare (deliotte.com, 2016).

Francesca Citter

Page 6 of 21

1

SC broadens consumer awareness of sustainability, ethic, and morality by explaining the story behind products. To do so, it uses technological devices to create hypnotic experiences that aim to let the customer focusing on less.

As Carl Honoré, the God father of the Slow Movement, said, people are so immerse in the culture of speed that they do not realise the consequences it has on all aspects of our life: our health, our

diet, our work, the

environment, our relationships (London, 2016) .

SC understands this urgency in slowing down and

(LS:Nglobal.com, 2016)

redefining what really matters to individuals. It adds a new dimension, involving the awareness not only of a product history, but also of individual’s needs.

This generation has a sustainable-driven mentality and they like to share their involvement with the world online to feel more connected with each others (LS:nglobal.com. 2016)

This statement comes from a primary research conducted by the author, who attended the Tech Expo discussing the “future of retail” in London, 21st November 2016.

God father of the Slow Movement.

1

Francesca Citter

Guest Speaker:Carl Honoré, the Page 7 of 21

IMPACTS: WHAT IS CHANGING? ART ENVIRONMENT:

In the attempt to align with the emerging need of simplicity, the internal space of Art galleries is shifting providing an environment that respites visitors from the business of the outside city.

It darkens all the unnecessary distraction and allow the spectator to fully concentrate with the artwork.

SC want the consumer to be immerse in the experience so that a high attention on products is placed.

The art Empty Galley in Hong Kong promote (LS:Nglobal.com, 2016)

also a strong interaction and involvement by viewers as the more they focus, the more the images’ components assume a form.

Francesca Citter

Page 8 of 21

IN-STORE PRODUCT OFFER:

In line with SC, Retail stores invite people to refined their eyes for quality over then quantity and to be more informed about the product they buy.

Monika Shoten, a book store that has recently opened in Tokyo, has made the confident decision to stock and expose a different book every week.

The concept behind it invites people to be educated about the product they purchase, and encourage them to experience the (LS:Nglobal.com, 2016)

Japanese philosophy of zen proper of the retail.

Francesca Citter

Page 9 of 21

FOOD INDUSTRY: 1.

SC is taking hold also in the food sector, where people are progressively becoming interested in the pro capita food-waiste (LS:Nglobal, 2016).

Viande & Chef, a butcher’s shop in Paris, stocks one animal at a time until the carcass has been fully used.

The chef behind the butchery, Benjamin Darnaud, believes that cutting-off the choice leads to more considered consumption of meat.

(LS:Nglobal.com, 2016)

‘Killing an animal is not a simple act..So we are trying to work as much as possible with the whole animal’ (LS:Nglobal, 2016).

Francesca Citter

Page 10 of 21

2.

A High-quality product is not just about fashion and St Eriks has proved it. (psfk.com,2016) The business has developed handmade chips that features rare Nordic ingredients (psfk.com, 2016).

Even though the pack was being sold for $74, $14.80 for a single chip, they sold out in just few days.

The proceeds they made was all donated to charity and the price-quantity ratio has shown that people are willing to buy expensive items, especially when it is for a good reason (psfk.com, 2016)

(psfk.com,2016).

SC’ customer is not afraid to spend, but it must be for meaningful reason.

Francesca Citter

Page 11 of 21

BEAUTY INDUSTRY:

This shift to a minimalist mindset proper of SC also applies in the beauty industry.

The new skincare line by Alex Carro has cut down the line to five key products. ‘Too much choice, too many messages, not enough transparency. Walking into any beauty hall is enough to leave the most centred person dazed and confused,’ (LS:nglobal.com, 2016).

(LS:Nglobal.com, 2016)

Francesca Citter

Page 12 of 21

TECHNOLOGY INDUSTRY:

The development of vanguard technologies align with SC too.

A need to ease our life by reducing the excessive number of disposable devices has brought to life the new Smart Remote, the universal remote.

The remote can connect with more then 25,000 connected devices in your home and allows users to get rid old all the other devices (weird.com, 2017).

Customers are now capable of switching off their (Weird.com, 2016)

television, turning on the light, and call a uber with the same remote.

Francesca Citter

Page 13 of 21

RECOMMENDATIONS: WHO? The chosen brand by SC is H&M. H&M is a high-street brand founded in 1947. Its mission statement is all about the production of sustainable, good-quality, and affordable products as they are not only passionate about fashion, but also the world around us.

At the core of their business there is a keen attention to every part of the production process. As mentioned in their website, they want their

(H&M.com, 2016)

customers “to be proud of what they wear, not only about how good they look, but also about the way the clothes are made and the environmental and social impact the garments have across our value chain� (about.hm.com, 2017).

Each year H&M launches the Conscious Exclusive collection that includes high-end environmentally friendly pieces.

Also, it promotes

the recycle of unwanted garments in all H&M stores across the globe.

Francesca Citter

Page 14 of 21

Conscious Exclusive and the recycling initiative aim to move H&M towards a more sustainable fashion future.

With sustainability and conscious production and consumption at the core of H&M value, SC trend will make the sustainable future something more tangible and a bit closer.

H&M is proactively working to remove toxic chemicals from its supply chain and aims to completely do that by 2020. After having launched the “Detox campaign�, with 75 other brands , H&M together with Inditex and Benetton were the only three brands recognised as sustainable frontrunners (sustainablebrands.com, 2016).

Francesca Citter

Page 15 of 21

WHAT and HOW? SC trend encourages customers to consume responsibly. It helps them to cut off the excessive options and let them focus on a range with reduced width and depth.

SC increases the quality of products and supports sustainable fashion throughout the whole cycle of production (and more).

SC is aware of the strong ethic and values shared by millennial and plays around it. It creates a new brand image where the promotion and collaboration with sustainable talents is as important as the one with famous designers.

SC is also aware of the pros that emerging concept environments have. That is why it wants to create hypnotic spaces to increase customer engagement in the shopping experiences. If time is the ultimate luxury, SC is the perfect trend to implement.

SC takes advantage of the latest technology devices and wants to introduce screens where consumers can learn, via visual short movies, the story behind a product. This interactive strategy let them being fully present while buying, and it increases their consciousness about their needs and the product itself.

SC not only invites customer to be informed of the products they buy, it will also rewards them with discounts and promotions if they actually learn the key points explained in the short-movie. In fact, an allowance of a 10%off (or more) can be given at the till point if customers reply correctly to three bold question about the product they buy.

SC supports in-store monthly events to raise awareness of how the production process works and what can be done on a daily base to improve the system. Interactive screenings, activities where customers have to proactively engage and improve their problem solving skills will help them to be more conscious when buying and recycling.

Francesca Citter

Page 16 of 21

SC, as Millennials, believe that profit is not the only factor determining success. It considers shared values and ethics the driving force for a new fashion concept.

By engaging on a deeper level with consumers, SC wins the problem of customer retention and loyalty which, according to deloitte.com is the biggest problem with this generation (2016).

Also, it scales up the brand as technology vanguard and gives a further edge amongst its competitors.

(pinterest, NA)

(psfk.com, 2016)

Francesca Citter

Page 17 of 21

TO WHOM?

LIMITATION A challenges that H&M might have to face when

The target sector for this trend is Millennials.

implementing this trend is that sustainable and highIn fact, even though they are the generation with the widest

quality products may lead to higher production costs.

range of choices, they usually opt for brands that reflect

This would have a direct impact on the profit margin

their personal values (businessinsider.com, 2016).

that would shrink.

As mentioned in forbes.com, they are more keen on responsible production, consumption, climate change, and

In addition, collaborating with a specific, limited

industry innovation (2016).

group of sustainable designers might cause

Moreover, as they become the workforce of today, their

interruption in the business supply chain, as they tend

spending power has overtaken the other generations

to manually handcraft products. This could cause

(mintel.com, 2015).

several delays in the manufacturing process, as well

So, Millennials strong

as in delivery times.Therefore, it would be valuable to

engagement

consider alternatives, or semi-automatic processes to

with

speed up the production line.

environmental issues and their

progressively

increasing income make them the perfect segment to be targeted. (pinterest, NA)

Francesca Citter

Page 18 of 21

BIBLIOGRAPHY: 1. about.hm.com, (2017). SUSTAINABLE FASHION. [online] available at: http://about.hm.com/en/sustainability/sustainable-fashion.html 2. Academic.mintel.com. (2017). Consumers and the Economic Outlook: Quarterly Update - UK - September 2016: Key Findings. [online] Available at: http://academic.mintel.com/display/791101/ [Accessed 4 Jan. 2017].

3. amanet.org, (2016). Secrets of multitasking: slow down to speed up. [online]. Available at: http://www.amanet.org/training/articles/ Secrets-of-Multitasking-Slow-Down-to-Speed-Up.aspx 4. Burrows, M. (2014) The Future Declassified. New York City: St. Martin's Press. 5. BusinessInsider.co.uk (2017). Here is the letter the world's largest investor, BlackRock CEO Larry Fink, just sent to CEOs everywhere. [online] Business Insider. Available at: http://uk.businessinsider.com/blackrock-ceo-larry-fink-letter-to-sp-500-ceos-2016-2?r=US&IR=T [Accessed 6 Jan. 2017].

6. BusinessInsider.co.uk (2017).How important is sustainability to millennials [online] Business Insider. Available athttp:// www.businessinsider.com/how-important-is-sustainability-to-millennials-2015-10?IR=T 7. deloitte.com, (2016). The 2016 Millennial survey. [online] available at: https://www2.deloitte.com/content/dam/Deloitte/global/ Documents/About-Deloitte/gx-millenial-survey-2016-exec-summary.pdf 8. Emarketer.com. (2016). Luxury Brands Can't Ignore Digital for Building Meaningful Relationships - eMarketer. [online] Available at: https://www.emarketer.com/Article/ Luxury-Brands-Cant-Ignore-Digital-Building-Meaningful-Relationships/1013916 [Accessed 11 Dec. 2016]. 9. express.co.uk, (2016). Italy referendum explained: What was the vote about and could the result destroy the EU?. [image] Available at: http://www.express.co.uk/news/world/711044/italy-referendum-explained-result-tear-eu-apart-exit [Accessed 6 Jan. 2017].

Francesca Citter

Page 19 of 21

10. forbes.com, (2016). New findings about the millennials consumer. [online] available at: http://www.forbes.com/forbes/welcome/? toURL=http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/&refURL=https:// www.google.it/&referrer=https://www.google.it/ 11. harpersbazaar.com (2015). WHY I WEAR THE EXACT SAME THING TO WORK EVERY DAY [online] available at: http:// www.harpersbazaar.com/culture/features/a10441/why-i-wear-the-same-thing-to-work-everday/\ 12. Independent.co.uk (2017). What a No vote in Sunday's Italian referendum would mean for us. [online] The Independent. Available at: http://www.independent.co.uk/news/business/news/italy-referendum-what-is-it-about-what-happens-no-vote-uk-eurozonea7447591.html [Accessed 6 Jan. 2017].

13. Insidequest.com, (2017). [online] Available at: http://www.insidequest.com/episode/simon-sinek/ [Accessed 5 Jan. 2017].

14. LS:Nglobal.com, (2017). THE DISLOCATED WORLD. [online] Available at: https://www-lsnglobal-com.ezproxy.westminster.ac.uk/macrotrends/article/20227/the-dislocated-world [Accessed 6 Jan. 2017].

15. LS:Nglobal.com, (2017). ZONED-OUT SPACES. [online] Available at: https://www-lsnglobal-com.ezproxy.westminster.ac.uk/microtrends/article/17130/zoned-out-spaces [Accessed 7 Jan. 2017].

16. LSNglobal.com. (2017). THE SHARDED SELF. [online] Available at: https://www-lsnglobal-com.ezproxy.westminster.ac.uk/macro-trends/ article/18351/new-bricolage-living-1 [Accessed 6 Jan. 2017].

17. psfk.com, (2016) A Brewer Has Created The Most Expensive Chips To Snack On. [online] available at: http://www.psfk.com/? s=expensive%20potato%20chips&search_sortby=date 18. XISchwartz, B. (2017). The paradox of choice. [online] Ted.com. Available at: https://www.ted.com/talks/ barry_schwartz_on_the_paradox_of_choice [Accessed 7 Jan. 2017].

19. Startwithwhy.com, (2017). [online] Available at: https://www.startwithwhy.com/LearnYourWhy.aspx [Accessed 5 Jan. 2017].

20. Stone, J. (2017). Brexit: 5 things we learned from a night that shook Europe. [online] The Independent. Available at: http:// www.independent.co.uk/news/uk/politics/brexit-explained-what-is-eu-referendum-britain-uk-voters-polls-results-a7100411.html [Accessed 6 Jan. 2017].

Francesca Citter

Page 20 of 21

21. Sustainablebrands.com. (2017). Greenpeace Reveals Brands Stumbling on the Catwalk to Toxin-Free Fashion | Sustainable Brands. [online] Available at: http://www.sustainablebrands.com/news_and_views/supply_chain/hannah_furlong/ greenpeace_reveals_brands_stumbling_catwalk_toxin-free_fa [Accessed 6 Jan. 2017].

22. Times, T. (2017). Across the World, Shock and Uncertainty at Trump’s Victory. [online] Nytimes.com. Available at: http:// www.nytimes.com/2016/11/09/world/europe/global-reaction-us-presidential-election-donald-trump.html [Accessed 4 Jan. 2017].vogue.com (2016). H&M DESIGNER COLLABORATIONS. [online] Available at: http://www.vogue.com/13494234/hm-designercollaborations-ranked/ 23. warc.com. (2016). European Marketing Budgets Tumble After Brexit Vote. [online] Available at: https://www-warccom.ezproxy.westminster.ac.uk/Content/ContentViewer.aspx?MasterContentRef=8ac2b090-3184-484fb593-9ff4432ed3b6&q=brexit&CID=A108498&PUB=WORLD-ECONOMICS [Accessed 4 Jan. 2017].

24. Wgsn.com, (2017). [online] Available at: https://www-wgsn-com.ezproxy.westminster.ac.uk/news/downcast-neiman-marcus-has-newworry-the-ever-shortening-fashion-cycle/ [Accessed 6 Jan. 2017].

25. Wgsn.com, (2017). US consumer sentiment soars in December on expectation of new economic policies. [online] Available at: https://www-wgsn-com.ezproxy.westminster.ac.uk/news/us-consumer-sentiment-soars-in-december-on-expectation-of-neweconomic-policies/ [Accessed 6 Jan. 2017].

26. wired.com, (2017). Sensor-Laden Remote Control Knows Where You’re Pointing It. [online] available at: https://www.wired.com/ 2017/01/sevenhugs-smart-remote/ 27. YouTube. (2017). Simon Sinek on Millennials in the Workplace. [online] Available at: https://www.youtube.com/watch? v=hER0Qp6QJNU [Accessed 5 Jan. 2017].

Francesca Citter

Page 21 of 21