Page 32 - Masala Lite Issue 166 October 2024

environments – where stores offer immersive,

interactive, and social experiences – is a direct
response to this demand. From pop-up shops
and art installations to VR-based shopping
The Shift from Products to experiences, brands are increasingly creating
The Shift from Products to
environments that engage all the senses, and
Experiences provide something memorable beyond just
the product itself.
Darshan Mehta Personalisation and Connection
Darshan Mehta explores how modern
Another driver of the experience economy is the demand for personalisation.
ning value.

consumers are redefining value. Consumers now expect customised and tailored experiences that cater to their
consumers are redefi

individual preferences. Brands that excel in delivering this are succeeding in creating

In today’s consumer-driven world, the traditional notion of purchasing goods and deep emotional connections with their customers. For example, Netflix and Spotify

products has evolved. People are no longer simply buying items; they are buying provide curated content based on user habits, while companies like Stitch Fix offer

experiences. This shift marks a significant transformation in the marketplace, driven personalised fashion boxes. These experiences make consumers feel seen and valued,
by changing consumer values, technological advancements, and the desire for deeper encouraging brand loyalty and long-term engagement.
emotional connections with brands. Moreover, the global pandemic amplified this trend, as people spent more time

The Rise of the Experience Economy at home and sought meaningful connections through digital experiences. Virtual
events, online fitness classes, and personalised subscription services surged during

The concept of the ‘experience economy,’ introduced by Joseph Pine and James lockdowns, underscoring the value of experiences in fostering a sense of community
Gilmore in the late 1990s, describes a shift where businesses move beyond offering and fulfilment even when physical interaction was limited.

products and services to staging memorable experiences for their customers. This
framework now dominates many industries, with consumers seeking to derive A Sustainable Approach
meaning, joy, or connection from their interactions. It’s not just about possessing As people become more conscious of their environmental impact, experiences also
material goods anymore; it’s about how those goods make consumers feel, the story provide a more sustainable option. Consumers are increasingly aware of the waste
they tell, and the memories they create. and environmental toll associated with overconsumption. By prioritising experiences
For instance, the popularity of brands like Apple and Nike is not solely due to the over products, they reduce their carbon footprint while still satisfying their desires
quality of their products but the overall experience they deliver. When people buy an for novelty and enjoyment. Travel, adventure, and cultural experiences often hold
iPhone, they’re not just purchasing a smartphone but buying into the entire Apple more long-term value and personal growth than accumulating material possessions.
ecosystem – its sleek design, intuitive user interface, sense of prestige, and customer Conclusion
support system. Similarly, Nike’s marketing doesn’t just focus on shoes; it promotes
empowerment, self-actualisation, and a sense of community through its “Just Do It” The modern consumer is not just purchasing a product – they’re buying into a narrative,
campaigns and various athlete endorsements. a lifestyle, or a memory. Brands that understand this shift are focusing less on selling
material goods and more on creating meaningful, personalised experiences that
Millennials and Gen Z Shaping the Market resonate emotionally with their audience. In a world where what we do often matters
This shift is particularly prevalent among younger generations, especially Millennials more than what we own, the experience economy is reshaping the way people interact
and Gen Z, who prioritise experiences over possessions. Studies show that these with brands, engage with communities, and derive value from their purchases.
consumers prefer to spend money on travel, dining, entertainment, and social
activities over material goods. Their desire for experiences is fuelled by social media, Darshan Mehta is the founder and CEO of Carmina,
where the sharing of travel adventures, gourmet meals, and event attendance can a Latin cuisine restaurant in Bangkok, and the host of

enhance personal identity and status. Experiences, in this sense, offer social currency the “Getting to Aha” podcast. He also the founder
that tangible products do not. of iResearch, an online insights platform that enables
companies to quickly, easily, and affordably extract

Digital platforms such as Instagram, TikTok, and YouTube have magnified this trend.

People now crave ‘Instagrammable’ moments – unique, visually-appealing experiences insights from consumers or employees worldwide. He
that can be shared with their online communities. The rise of experiential retail can be reached at dm@iresearch.com.

MASAL A LITE ISSUE 166 - OCTOBER 2024