How are they downsizing? From my research, I noticed that they are buying smaller cars and living in smaller apartments and houses. They are reducing the amount of clutter in their homes by buying fewer clothes as well as home furnishing, subscribing to fewer magazines and choosing not to continue to update their tech gadgets when a "slightly" newer one enters the market. Don't misunderstand they are still shopping but they are only buying what they need and no more. They are no longer just going in "blindly" purchasing something because it's the hottest thing out right now. These 20-somethings are doing their research and are questioning things.
Financial constraints may be a reason for a few but the majority are voluntarily doing this. Why are they choosing to do this? Many, have seen their friends and family members in debt or consumed by items and they don't want to be controlled like that. Despite not doing this for financial reasons, many find that they are able to save more money and actually have more free time to pursue other interests such as traveling and the arts. They want to be able to enjoy their lives "without being bogged down by lots of stuff", as one 20-something young woman said.
This is very intriguing because they are creating a whole new target market. Although this change is currently small, I think retailers as well as marketers and advertisers should keep a look out on how this lifestyle change may affect them, if more 20-somethings decided to pursue this new lifestyle.
Are you part of this new lifestyle change? If so, what made you interested in it?
4 comments:
Some sound observations. This is certainly happening in other demographics too - the 35+ as well for many of the same reasons. Financial burdens - absolutely are weighing in on this - people are failing to pay their mortgages and can't even afford to buy a house and have a car. But, I think our raised consciousness that there's more to life than "me" due to global warming has had some impact onfostering the "less is more" attitude. I agree. I'm a big fan of one basic tenet: SIMPLIFY!
More people are becoming finacially conscious but most (retailers, marketers, etc.) don't assume that 20-somethings would be choosing to downsize. Which is why I decided to research and study this "trend". I found it be very interesting that some are becoming more aware of what they want and need.
I'm 26 and I definitely belong to this group. To me it's all about priorities: I want a better home than what i would be expected to have in 10 years, so I start saving now. Also, I rather spend my money to go to Spain in the summer than go out for drinks (and a cab fare) so often. Plus, doing that so much gets boring anyway. So for entertainment, I do other things that I find more interesting and different than the typical club/bar/drinks thing. In the end, a lot of my friends think I have more money because I don't have roommates (I live in a smaller apartment in an upcoming part of the city = cheaper & very nice neighborhood)and travel on average twice a year (I look for deals during off seasons), but the truth is, they make more than I do: I just have different priorities and keep the future in mind. And when I have to spend, I do it wisely.
Chrissie,
You have a lot of good points especially about having different priorities from some of the 20-somethings.
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