GEN ZERO OWNERSHIP
According to UBS, the subscription economy is expected to swell to US$1.5 trillion by 2025, making it one of the fastest-growing industries globally. The continued growth of subscriptions demonstrates a broader change in the consumer mindset. That is, we increasingly value access and experience, over ownership.
The newest generation of consumers are a big contributor to this trend. Gen Zs, generally defined as those born between 1997 and 2012, are quick to sign up for subscription models as long as they allow for personalisation and flexibility, according to research from Recurly.
At the other end of the spectrum, Baby Boomers – those born from 1946 to 1964 – are particularly reluctant to commit to a subscription, according to a Deloitte report. The report also showed that financial incentives are the most important factor inducing customers to subscribe, followed by convenience and access to premium offerings.
In a rapidly changing world where lifestyles and preferences evolve, consumers appreciate the ability to switch between different products or services without long-term commitment. By lowering barriers to entry, particularly for expensive items like electronics or luxury goods, subscriptions also help democratise access to goods and services across socioeconomic groups.
As this subscription revolution continues to unfold, it’s not just about convenience or cost savings. Another significant advantage is sustainability. Singapore generates about 60,000 tonnes of electronic waste annually, the equivalent to each person throwing away 70 mobile phones a year.
Subscriptions allow consumers to reduce waste by accessing products only when needed, rather than purchasing items that may go unused or underutilised. This shift aligns with growing environmental consciousness and the desire to minimise our ecological footprint.
From: channelnewsasia
Business News
