Darshan Mehta explores how modern consumers are redefining value.

In today’s consumer-driven world, the traditional notion of purchasing goods and products has evolved. People are no longer simply buying items; they are buying experiences. This shift marks a significant transformation in the marketplace, driven by changing consumer values, technological advancements, and the desire for deeper emotional connections with brands.

The Rise of the Experience Economy

The concept of the ‘experience economy,’ introduced by Joseph Pine and James Gilmore in the late 1990s, describes a shift where businesses move beyond offering products and services to staging memorable experiences for their customers. This framework now dominates many industries, with consumers seeking to derive meaning, joy, or connection from their interactions. It’s not just about possessing material goods anymore; it’s about how those goods make consumers feel, the story they tell, and the memories they create.

For instance, the popularity of brands like Apple and Nike is not solely due to the quality of their products but the overall experience they deliver. When people buy an iPhone, they’re not just purchasing a smartphone but buying into the entire Apple ecosystem – its sleek design, intuitive user interface, sense of prestige, and customer 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” campaigns and various athlete endorsements.

Millennials and Gen Z Shaping the Market

This shift is particularly prevalent among younger generations, especially Millennials and Gen Z, who prioritise experiences over possessions. Studies show that these consumers prefer to spend money on travel, dining, entertainment, and social activities over material goods. Their desire for experiences is fuelled by social media, where the sharing of travel adventures, gourmet meals, and event attendance can enhance personal identity and status. Experiences, in this sense, offer social currency that tangible products do not.

Digital platforms such as Instagram, TikTok, and YouTube have magnified this trend. People now crave ‘Instagrammable’ moments – unique, visually-appealing experiences that can be shared with their online communities. The rise of experiential retail 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 experiences, brands are increasingly creating environments that engage all the senses, and provide something memorable beyond just the product itself.

Personalisation and Connection

Another driver of the experience economy is the demand for personalisation. Consumers now expect customised and tailored experiences that cater to their individual preferences. Brands that excel in delivering this are succeeding in creating deep emotional connections with their customers. For example, Netflix and Spotify provide curated content based on user habits, while companies like Stitch Fix offer personalised fashion boxes. These experiences make consumers feel seen and valued, encouraging brand loyalty and long-term engagement.

Moreover, the global pandemic amplified this trend, as people spent more time at home and sought meaningful connections through digital experiences. Virtual events, online fitness classes, and personalised subscription services surged during lockdowns, underscoring the value of experiences in fostering a sense of community and fulfilment even when physical interaction was limited.

A Sustainable Approach

As people become more conscious of their environmental impact, experiences also provide a more sustainable option. Consumers are increasingly aware of the waste and environmental toll associated with overconsumption. By prioritising experiences over products, they reduce their carbon footprint while still satisfying their desires for novelty and enjoyment. Travel, adventure, and cultural experiences often hold more long-term value and personal growth than accumulating material possessions.

Conclusion

The modern consumer is not just purchasing a product – they’re buying into a narrative, 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 resonate emotionally with their audience. In a world where what we do often matters more than what we own, the experience economy is reshaping the way people interact with brands, engage with communities, and derive value from their purchases.

Darshan Mehta is the founder and CEO of Carmina, a Latin cuisine restaurant in Bangkok, and the host of the “Getting to Aha” podcast. He also the founder of iResearch, an online insights platform that enables companies to quickly, easily, and affordably extract insights from consumers or employees worldwide. He can be reached at dm@iresearch.com.