Transition: From “Experience Economy” to “Sharing Economy”
The world is gradually transitioning into a form of collaborative economy. Technology is driving the geometric growth of information and the constant emergence of new communication systems that bring people closer every day.
New generations are growing up with the ease of tapping a “like” or sending a heart if they like something. They are developing based on sharing emotions or relevant information for them. From the “Experience Economy” predicted by James H. Gilmore in 1999, we are now shifting to the “Sharing Economy.”
The rescue of General Motors by the Federal Reserve during Obama’s administration in the U.S. put Adam Smith’s disciples to the test in 2001. They received the news that the only way to revive the company was through socializing it with its workers. This eventually led to the emergence of new Brandscapes—spaces for sharing and socializing around brand content, which found their experiential phenomenon rooted in new, unique value scales (Signature Experiences). This shift can be seen in the rise of companies like WeWork, which built a business model around this idea. It’s unfortunate that Adam Neumann didn’t complete the circle by developing other structures of shared economy based on consumer dynamics in capitalism.
Now, the evidence of climate change is showing us the limits of our planet. With this comes the need for companies to adopt active sustainability policies if they wish to retain the new, globalized, and well-informed consumer.
The COVID-19 Phenomenon is only accelerating these processes.
COVID-19
Today, the COVID-19 phenomenon has sped up everything. The collaboration between businesses and governments is fostering new mechanisms to tackle the health crisis. This has been happening in Europe and Latin America, where we’ve seen Macron working to bridge the gap between the European Union and Russia after years of divergence.
In Peru, the Minister of Economy is proposing a strategy to save small and medium-sized enterprises (SMEs), which are crucial to sustaining the middle class and laying the foundation of our consumer society.
Hyperconsumption
To understand the future of retail in Peru, we cannot overlook the future of the consumer society—what we now call the society of hyperconsumption.
We must be ready to understand that the landscape on which the retail world has been developing in recent years will never be the same again. Globalization, as we know it, will cease to exist.
Peru: COVID-19 and the Global Crisis
The mantra of every retailer, “The right product, at the right place, at the right time,” was coined as a victory cry in the 90s. Thanks to technology and perfectly designed global supply chains, it solved global logistical issues and paved the way for concepts like CX (Customer Experience) and UX (User Experience), which had become the spearheads of brand innovation in the pre-COVID world.
Now, old battles we thought we had won are reappearing as disruptive challenges. Added to that is the lack of digital infrastructure in Peru, along with the socio-economic and cultural scenario we find ourselves in—similar to many Latin American countries, where consumption dynamics were transitioning from a pre-globalized state to a globalized one, strengthening the middle sectors of society. (This topic deserves its own article.)
What Does the Future of Retail in Peru Look Like?
What variables exist to solve this equation that COVID-19 has suddenly laid out for us?
The future of retail in Peru is promising. We must be strategic and trust in ourselves. The game is the same; now, it’s just time to play at home
El futuro del retail peruano es prometedor, debemos ser estratégicos y tener confianza en nosotros mismo. El partido es el mismo, solo que ahora nos toca jugar de local.
Architecture
Phygital
Business