Rental over Retail
Equipped with education on key social issues and an eagerness for activism, today’s young consumers are empowered to evolve the economy. Young adults are aware of overconsumption and taking a closer look at their own, personal, contribution to capitalistic consequences like environmental waste. While prior generations were motivated by materialism, today’s young adult market is bound to “buy not” opting for rental over retail across a range of industries.
The average consumer is exposed to over 5,000 advertisements per day, according to marketing firm Yankelovich. Whether on email inboxes or Instagram feeds, streaming services or subway screens, marketers push consumers to spend, spend, spend. But the YA market is grasping that more ‘stuff’ doesn’t necessarily add more meaning to their lives. Keeping up with their Instagram- image and ever-changing styles is expensive, excessive and can leave them feeling empty. Unlike prior generations who felt a sense of fulfillment from shiny clothes, cars and homes, gen-z prioritizes experiences over things. On their social profiles, they would rather show off an exotic vacation than a new handbag. They want to see the world, watch their favorite bands play and invest in healthful pursuits. Plain old ‘things’ just don’t hold the same power as they used to.
While the young adult market still spends, they seek to revolutionize retail with a reduce, reuse and recycle approach. Whether fashion, furniture, apartments, jobs, transportation, television shows or even romantic relationships, Gen Zs are fans of trying things out temporarily. They feel weighed down by personal property and have determined they don’t need to own pretty much anything. Fed up with materialism, these consumers are eager to align with brands that offer better ways to buy - or borrow.
The fashion industry, in particular, has a serious sustainability issue. Brands like Rent the Runway, Express and American Eagle are leading the way when it comes to adopting anti-buying incentives. These companies aim to right the wrongs of fast fashion by offering subscription rental services, secondhand stores, swaps and exchanges. Gen Zs adore these programs, given their dilemma to keep up with the fads, but keep down the 92 million tons of textile waste generated each year. Brands like Patagonia and REI pioneered anti-consumerism campaigns and helped make materialistic mindfulness go mainstream.
The rising trend of ‘fast furniture’ also contributes to landfills, with 9.7 million tons of waste each year. The brand Green Standards gives consumers the chance to donate and resell office furniture, while Ikea offers furniture rentals.
Today’s youth challenge the concept of materialism with the Buy Not Movement. Values of environmental sustainability and ethical economic practices shape the way they buy (and don’t buy) fashion, furniture and beyond. They are self-aware, are not prey to traditional brand messaging and prioritize cultural experiences over things. Their interest in short-term product ownership is emblematic of their preference for the temporary nature of nearly everything in society. Marketers that embrace the sharing economy with innovative shopping structures and place value on quality over quantity will flourish. By adding more meaning to, and minimizing materialism, brands will win the hearts and wallets of young consumers.