There has been a quiet revolution happening. Beyond the delivery of goods and services, consumers are increasingly looking to break out and experience new things and, ultimately, improve their lives.

And fashion and retail giants are cashing in.

But how much of this is clever marketing and how much is about generating new, standalone revenue streams that make you a better person in the process?

The Experience Economy

First came the Experience Economy; this is all about experiencing the ‘new’ or attending a memorable event.

Companies such as LMVH have launched digital lifestyle platforms championing the art of hosting, selling tastings, intimate dinner parties hosted at private homes, and luxury travel experiences which all reinforce the aspirational lifestyle associated with their products.

The Transformation Economy

More recently however, the Transformation Economy has sought to push the boundaries further by supporting consumers with the achievement of goals and potential through self-actualisation.  

Nike has been offering consumer-facing experiences such as weekly running clubs organised by local retail stores, and major races where guests participate in complimentary workout classes and socialise before and after the event. Their new Nike+ app encourages users to sign up for local running and training classes and pulls in personal fitness data from Nike’s standalone training apps, with perks offered to frequent users including early access to new gear. The sales pitch is a healthier and fitter you.

Other companies such as Lululemon are offering meditation, yoga classes and life coaching advice.

Beyond Marketing...

While the Transformation Economy seeks to capitalise on aspirational rather than inspirational lifestyle choices and purchases, its potential as a revenue generation stream in its own right remains largely untapped. Indeed, as we become increasingly self-aware and seek to fulfil our mental and physical potential, it seems fair to conclude the Transformation Economy is potentially a more rewarding 'win-win' for everyone.  

At the very least, while disruptive business models continue to thrive at an alarming rate, forcing companies to rethink their routes to market, price points and customer base, it would seem only prudent to explore other less saturated revenue streams.

What do you think about the Transformation Economy? Do you think it is just clever marketing or do you think it has broader potential?

Email us your thoughts.