What is experience economy?
Experience economy is the amalgamation of creation and consumption of products engulfed in memorable experiences
Psychologists have shown people often forget what you said but they always remember how you made them feel.
Brand perception is a “feeling” and experiences around brand’s products create that feeling.
Experience marketing is the process of creating those feelings by immersing brand and its products into exciting, emotional, memorable experiences for the target consumer.
Behavioral change among Millennials
A study done by Harris Poll on behalf of Eventbrite indicates that 3-4 millennials (78%) would choose to spend money on a desirable experience or event over a product. And 55% say they are spending more on events.
Data on people who have posted tweeted, shared about their events and experiences in 2014. (Source: Harris poll for Eventbrite)
Millennials are prioritizing concerts, adventure, travel more and more over owing products such as cars, homes etc. You can see that from the rise of services such as Uber, Airbnb, WeWork etc.
Since 1987, the amount of money spent by US consumer on live experiences and events had increased by 70%, per Harris group.
Is Fashion industry embracing this behavior?
Yes, the fashion industry has begun embracing this behavior change to stay in touch with the current consumer.
In 2016, we have seen a multitude of examples how fashion brands created experiences around their products by collaborating with complementary brands.
Michael Kors & Snapchat
Luxury designer Michael Kors flirted with Snapchat to create sunglasses filter for the launch of its Kendall II sunglasses. The glasses filter could be superimposed on user’s face, enabling the user to virtually try them on.
It was a huge success and lens filter was viewed over 104 Million times translating to 18% increase in ad awareness, per Business Insider.
Hugo Boss + Uber
We are in the on-demand economy and consumers want access to products and services, right when they want it.
Hugo boss partnered with Uber to provide its consumers with ‘Boss On Demand’ shopping experience. It offered exclusive door-to-door services for its affluent customers to get them from home to their in-store appointments.
It is a smart move from Hugo Boss because it will not only help drive sales but also drives brand loyalty among its consumers.
Etihad Airways, NYFW & Jimmy Choo
Etihad Airways collaborated with Jimmy Choo for New York fashion week. They co-hosted a Jimmy Choo themed VIP lounge at the runway venue. The lounge showcased 20 different shoes from Jimmy Choo from past decade.
This collaboration put Etihad Airways as a fashion forward brand and put them in the eyes of fashion-conscious New York elites.
Macy’s, Yoga & Mini-concerts
Macy’s consistently monitors trends among millennials. It keeps tabs on what is happening in fashion week and how millennials are behaving at festivals like Coachella – very popular among millennials.
Macy’s is capitalizing on this trend and hosts flower shows, mini-concerts, yoga classes etc. to entice millennials.
It wants millennials to experience what they already love and associate those “positive” feelings with the brand. You can visit their Event Marketing page to find out about upcoming events.
Safilo and Smith’s brain sensing sunglasses
We are seeing a consistent shift in spending towards experiences by luxury consumers, especially in self-improvement industry.
Millennials are embracing Yoga practices and gearing more towards the spiritual aspect of life.
Safilo is answering to that trend by introducing its brain sensing sunglasses that would monitor user’s brainwaves to see points of focus so that it can train the brain for mindfulness.
What can upcoming fashion brands do?
If you are an upcoming fashion brand, it might feel that creating these experiences are expensive and time-consuming. I agree, it takes time and effort to create collaborations and memorable experiences but they are worth it.
An easy way to start would be collaborating with complementary local brands to create small event or experience where you can bring clients together to participate in an activity.
You can also partner with local events coordinators, yoga instructors, sound healing societies to host small but memorable experiences for your audience.