ACCESS HAS NOW BECOME MORE IMPORTANT THAT OWNERSHIP

Gen Z has a different approach to consumption than its predecessors. They are highly connected and informed, hence they use various social media platforms as sources of information to make purchasing decisions. They are not interested in owning things but rather accessing them when they need them. 

Consumption Re-signified: From Possession to Access

This more pragmatic and realistic generation of consumers expects to access and evaluate a broad range of information before purchases. Gen Zers analyze not only what they buy but also the very act of consuming. Consumption has also gained a new meaning. For Gen Zers - and increasingly for older generations as well - consumption means having access to products or services, not necessarily owning them. 

As access becomes the new form of consumption, unlimited access to goods and services creates value. Products become services, and services connect consumers. Consumers no longer need to own physical products or services to enjoy their benefits. Instead, they can access them on demand, pay per use, or subscribe to them. This shift from ownership to access has profound implications for businesses, consumers, and society. Businesses need to rethink their value propositions, revenue models, and customer relationships. Consumers need to weigh the trade-offs between convenience and control, privacy and personalization, quality and quantity. Society needs to address the environmental and social impacts of access-based consumption, such as waste reduction, resource efficiency, and social inclusion.

Equally Attractive Challenges and Opportunities for Brands

The world is changing rapidly and we need to adapt to the new realities. To reach this influential and diverse generation, brands need to understand their behaviors, preferences, and motivations and offer products and services that are accessible, authentic, and meaningful. The role of sporting-goods businesses, likewise, has shifted to helping people become better athletes by providing access to equipment, technology, coaching, and communities of like-minded consumers. 

Brands have to be proactive, innovative, and resilient in order to succeed in this dynamic environment. To catalyze the transformation process, brands can collaborate with influencers or other brands that share the same vision. Traditional consumer goods companies should consider creating platforms of products, services, and experiences that aggregate or connect customers around brands. Brands historically defined by the products they sell or consume can now rethink their value-creation models, leveraging more direct relationships with consumers and new distribution channels.

This is not a time to be complacent or fearful, but a time to be optimistic and ambitious. Marketers have the potential to create a positive impact and value for themselves and their stakeholders if they take advantage of the opportunities for these changes.

(Source: McKinsey & Company, True Gen: Generation Z and its implications for companies )

Edwin Jonathans - Brand Power Plus