From 'more, faster, cheaper' to conscious consumption

In the 1970s, 1980s and even 1990s, people looked forward to making larger purchases, such as a television, a dress or a holiday, which were big events and often expensive.

With the advent of fast fashion retailers such as Zara, H&M, and later Shein, the situation changed: shoppers could enjoy new collections every week, keeping up with the latest trends at bargain prices. According to a Greenpeace report, residents of Western Europe buy on average 60 items of clothing per year, the majority of which are barely worn or left in their wardrobes.

Online platforms such as Shein, Temu or AliExpress have accelerated this consumption further. Products can be shipped directly from China, frequently with free shipping.

© AFP

A recent study by UK television network Channel 4 showed that workers in the factories producing these garments often only earn around 4 cents per item. The international Labour Organisation (ILO) says that salaries for these factory workers range from €300 to €1,000 per month, involving 12-hour shifts in often inhumane conditions.

This overconsumption comes at a cost. The UN's environment programme (UNEP) estimates that the clothing industry is responsible for 8–10% of global CO₂ emissions. In addition, tons of unwanted clothing items end up in landfill in countries such as Ghana or Chile each year.

Buying less at higher quality – a new development

Despite the vast array of shopping options and encouragement towards materialism, it seems that change is afoot. Many people are starting to move away from overconsumption and instead looking to buy better quality items, with a focus on sustainability.

A study by  Euromonitor International showed that a number of consumers are ready to pay more for items which have been produced in fair conditions and are of high quality.

This trend is reflected in the growing demand for organic products and local manufacturers, fair trade labels, and better quality furniture or clothing, as well as opting for secondhand items, or repairing them instead of repurchasing.

So-called no-buy challenges are also rising in popularity: these involve only making essential purchases for a certain period of time, from a month, to six months, to an entire year. A study at the University of Cambridge found that people who participated in these challenges later experienced more freedom, more confidence and more awareness of their consumption of resources.

At the same time, prosperity is increasingly defined less than the number of objects owned, and instead measured in time, health and quality of life. Instead of filling one's wardrobe, people are choosing instead to invest in travel or activities.

Experiences over objects – how are people spending their money?

This trend is also reflected in spending, as people turn towards paying for experiences over accumulating objects at home.
The Global Wellness Economy Report says that each year,  around 5 billion dollars are invested in the global wellness industry, with a focus on travel, spa stays, self care and healthcare.

The Euromonitor figures show that the desire to travel is greater than ever before in the wake of the pandemic. In Germany, the foreign travel industry has grown by 15% over the levels before coronavirus. In Luxembourg, the tendency is also clear: instead of purchasing new gadgets, Grand Duchy residents are much more likely to invest in a holiday, a spa weekend, or experiences which will last in their memories.

There is strong growth in the wellness and healthcare sector: A  McKinsey study found that 70% of consumers are more likely to spend money on their health and general appearance. Vitamins, protein powders, natural cosmetics, collagen or adaptogens are no longer specialist items. Health is the new luxury – an investment that is valued by people more than the latest smartphone.

The trend is moving away from unbridled consumption towards more conscious, targeted spending. For some, this means minimalism, for others "quality over quantity". And more and more people are defining "doing something enjoyable" in terms of time, freedom and experiences, rather than their next shopping trip.