Why Millennials Don't Want To Buy Stuff

The concept of shopping has shifted from owning stuff to buying into new ideas.

Compared to previous generations, Millennials seem to have some very different habits that have taken both established companies and small businesses by surprise. One of these is that Generation Y doesn't seem to enjoy purchasing things.

The Atlantic's article "Why Don't Young Americans Buy Cars?" mused recently about Millennials' tendency to not care about owning a vehicle. The subtitle: "Is this a generational shift, or just a lousy economy at work?"

What if it's not an "age thing" at all? What's really causing this strange new behavior (or rather, lack of behavior)? Generational segments have profound impacts on perception and behavior, but an "ownership shift" isn't isolated within the Millennial camp. A writer for USA Today shows that all ages are in on this trend, but instead of an age group, he blames the change on the cloud, the heavenly home our entertainment goes to when current media models die. As all forms of media make their journey into a digital, de-corporeal space, research shows that people are beginning to actually prefer this disconnected reality to owning a physical product.

So is technology the culprit, then? Though it often seems to be the driver, technology cannot be the cause either, because it is simply an extension of the way we think. New tech is created because someone has decided to think differently about the world. This may, in turn, spur new technology, but the new thinking is always first.

And there's the culprit.

Humanity is experiencing an evolution in consciousness. We are starting to think differently about what it means to "own" something. This is why a similar ambivalence towards ownership is emerging in all sorts of areas, from car-buying to music listening to entertainment consumption. Though technology facilitates this evolution and new generations champion it, the big push behind it all is that our thinking is changing.

This new attitude toward ownership is occurring everywhere, and once we recognize this change, we can leverage it. Instead of kicking against the wave (which is the tendency of many institutions and leaders), we can help our organizations thrive in this strange new marketplace by going with the flow and embracing the death of ownership.

A New Form of Competitive Advantage

Even in this strange new world, the economic laws of scarcity apply, and they are precisely what's shifting. To "own something" in the traditional sense is becoming less important, because what's scarce has changed. Ownership just isn't hard anymore. We can now find and own practically anything we want, at any time, through the unending flea market of the Internet. Because of this, the balance between supply and demand has been altered, and the value has moved elsewhere.

The biggest insight we can glean from the death of ownership is about connection. This is the thing which is now scarce, because when we can easily acquire anything, the question becomes, "What do we do with this?" The value now lies in the doing.

In other words, the reason we acquire "stuff" is becoming more about what we get from the acquisition. Purchasing something isn't really about the thing itself anymore. Today, a product or service is powerful because of how it connects people to something--or someone--else. It has impact because we can do something worthwhile with it, tell others about it, or have it say something about us. As leaders and entrepreneurs, we can intentionally use this knowledge to our advantage. We just have to think about the "stuff" we sell in a slightly new way.

Since people aren't shopping to "own" things in the traditional sense anymore, here are the real reasons people are purchasing things now--and what we can do to tap into this new power:

1. People buy things because of what they can do with them. The product or service we deliver can help people do something important (if only to them), and this connects people to a sense of empowerment. It helps them feel less like spectators in their own lives, and gives them a greater sense of autonomy and action. As a company, Apple is great at leveraging this. Their products and services help people gain a sense of mastery over the world around them through digital products that let them curate music, movies, and photos. You'll notice this sentiment in almost any Apple commercial, which depicts the many ways people use their products to connect to their own personal purpose.
WHAT TO DO: Create crystal-clear communication that helps people connect how your product or service makes their lives better. An obsession with simplicity is essential.

2. People buy things because of what they can tell others about it. There's a social piece to owning something that is still very much alive, and always will be. Many times (and this will only be more true in the future), the joy of having something isn't in the having, but in the sharing. When we share something we like with people we like it creates a bond, and this is meaningful--and the goodwill created in that moment expands to encompass our brand and our business in general.
WHAT TO DO: Help connect people to other people through your business. Sales isn't really about "selling" anymore, it's about building a community.

3. People buy things because of what having it says about them. This is what The Atlantic author mentions when he talks about the desire of Millennials to live in urban settings. Though I don’t pretend to speak for everyone in my generation, for me this choice has almost nothing to do with being anti-car. Instead, it's about all the other things a "non-car life" represents: it helps me be more environmentally conscious, socially aware, and local. This distinction of purpose may seem nuanced, but motivation is a powerful differentiator (perhaps one of the most powerful).
WHAT TO DO: Connect people to something bigger than themselves through your product or service. A bigger impact is almost always there, we just tend to forget about it.

As we watch the old definition of "ownership" go extinct, how will you leverage the unique connections your product or service could create? It could very well mean the difference between life and death for your business.

Josh Allan Dykstra is a founder of the consulting firm Strengths Doctorswhere he helps leaders design work environments that don't suck. He is a member of the Young Entrepreneur Council (YEC), an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. The YEC recently published #FixYoungAmerica: How to Rebuild Our Economy and Put Young Americans Back to Work (for Good), a book of 30+ proven solutions to help end youth unemployment.

[Photo: Flickr user Pete]

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109 Comments

  • Bridget Cassey

    Bizarre take - try economic's - cost of education - lack of grants - £9000/yr fees over 3 years. Price of insurance for under 25yrs. . You need to pay for parking even in your own street or car park. Cost of petrol, cost of MOT's - lack of ability to fix your own car with simple spares easily available from Halfords. Cost of maintenance, car tax, amount of traffic on roads - no freedom of the road - traffic jam of the road. All cars look the same and have no character and they cost a fortune. And right at the end of the list Increase in ability to contact and socialise via skype/facetime/ snapchat....think on.

  • moody529

    There's a nice little irony to this -- ad sales and ratings are based on the "coveted 18-30 demographic," because traditionally they are the age group that is busy acquiring Stuff. If the "coveted demographic" doesn't buy Stuff -- you have yet another system thrown into turmoil. I like it.

    I like the Millennials, too. They remind me of my hippie days, when Stuff, and buying things, and money itself, were also regarded as dubious and probably toxic. I gave up being a hippie, and had a modestly sub-par adult acquisitive life. But of course I am discovering the great beauty of the geezer years -- once again, you experience, and reject, the great weight of Stuff.

    I truly hate social media, so I'm here on a one-shot ticket -- please excuse the omnibus nature of my comment. I'd also like to point out that generational hatred is being fostered among the 99% -- not very common in the top fractional percentile. Divide and conquer works, my friends -- don't forget it.

  • Tyler Butnerson

    Mom and Dad paid for the NM's college education where they got to bs around and party for four to five years. After they get their degree , the NM's run home to live with mommy and daddy and tells them how they are not buying into the american dream. The dream for the NM's is to live at home with their parents and wait for them to die off so that they can get their assets. NM's are too proud to work two jobs to get things in life and they are waiting on the perfect job because they are so smart. They don't want yo own because they want to live with their parents forever. They don't want to own because it brings on accountability. They don't want yo own because it brings on responsibility.

    IM TIRED. Go drink your Starbucks, play on your apple i Mac and keep using moms second car until it breaks down. Guess who's going yo fix the car for you ? Poor old baby boomer dad.

  • Tyler Butnerson

    Bottom line. They get cars from their mom and dads and stay on their parents car insurance and drink Starbucks high costing coffee and play on their high tech gadgets bought with mom and dad's money. Also they don't ever want to leave mom and dad house because it's free. What a life. Care free.

    America is getting weaker

  • Alina Zhibek

    To be fair, most people don't live in cities to be environmentally conscious and socially aware. They do so because it's convent and fun.

  • Rich Wang

    No it is not because we are broke, it is precisely because we are enlightened to the fact that the things you own end up owning you. We see this truth pervasive throughout the suburban wastelands from which we came. Materialism and mass consumption is no path to happiness and enjoyment; it is an accumulative burden, a cognitive dissonance to mindful living; a bondage to needless stress and liability.

    Signed,

    1982 Millennial

  • Matty Dingo

    Well said. I wouldn't say millennial's appetite for mass consumption has diminished so much as it has changed. Us young folk no longer see consumption of material possessions as a means of validating our existence. Instead we look to consumption of experience as a means of achieving this. A facebook feed of good times and adventures is what we really want.

  • Zack Oliver

    Uh, smartphones and the new tech world is replacing cars. Cars were freedom, how you got to new experiences. Now the Internet through a mobile device is how you do that. Cars were also a way that you showed your affluence and personality. Now, a device is how you show how wealthy and cool you are. Also, a car was something that a certain age group bought that made them feel good, like a couple might buy a fancy stove or flooring. Phones are that way.

    I don't want to buy a new car because it's too expensive, it'll go out of style too quickly, and businesses have brought their wares to every corner of the globe. I don't need to go to a fancy city hours away to have a good experience. Hipsters make sure you van have a unique night experience almost anywhere there are hipsters. Also, companies are too easy to read now. The ones that just try to make a quick buck (Microsoft) often have an unexciting product...

    Anyway, The old model of a business becoming an institution is ending.

  • Demilynn Lynn

    Wow. Let me break down this so-called millennial generation in a nutshell, which this article so grotesquely demonstrates. this is the first generation to truly be characterized by having the ruling class crap on their heads and convince them that it's rain. no generation in history has ever been more under the hypnotic influence of a malevolent ruling elite. Millennials are spending less money, because they have less money. This is the generation that's being convinced that it's good to be poor. It's good to live in a tiny tiny house. It's good to only care about yourself and have no concern for the greater good. It's good to be narcissistic and self absorbed. No generation has ever been more systematically indoctrinated to agree with their own oppression, and yet experience self satisfaction from it.articles like this are the mechanisms for disseminating that indoctrination. Stop reading articles that tell you who you are and believing it.

  • Patrick Mathay

    I like and agree with much of this article, but it falls victim to a myopic lens, and then blows up its ideas to hyperbolic proportions.

    Humanity is not undergoing an evolution in consciousness. More than half of humanity still cannot connect to the internet. Most of humanity doesn't own much because they live on less than 3 dollars a day and could never afford basic services anyway.

    I agree wholeheartedly with the spirit of the article, but let's not lose sight of ourselves. Affluent people with the capacity to buy nice things are reevaluating their concept if value. That's it.

  • awnyc2020

    Why buy a car when you can pay someone else to drive you? Why buy a TV when an iPad or laptop works? Why buy DVDs when you can download them from the Internet for so cheap? Why buy full price when 2nd hand and discount/coupons/flash sales, etc offer cheaper and just as good options as new? Why buy anything that you can make yourself?

  • awnyc2020

    Why buy a car when you can pay someone else to drive you? Why buy DVDs when you can download them from the internet for cheap (or free)? Why buy full price when discount/2nd-hand ownership leads almost good as new? It's so much easier to subvert traditional "ownership".

    Now we pay for experience not material.

  • Amy McCloskey Tobin

    I run a Millennial Think Tank on G+ Hangouts every Thursday night and this is what I've learned: There is a profound shift in WHAT Millennials spend money on, and that shift WAS induced by the crappy economy and never ending recession. BUT, what they've told me repeatedly is that they are happy about this shift, because they don't buy into the 'American Dream' that was foisted upon them.

    I think this shift is the antidote to the horribly materialistic society we created.

  • Seriously, all you clueless baby boomers... What don't you get about soul crushing debt? This generation doesn't buy stuff because we can't afford it. Your generation decided to cut your own taxes in your prime earning years, disinvest in infrastructure and education, and pass those costs to the next generation. You may think the Beatles and JFK will be the lasting icons of your generation, but Ronald Reagan and Gordon Gecko are the archetypes of what your generation has wrought. Our generation is saddled with enormous student debt, and is obliged to invest in the institutions and infrastructure you have let deteriorate, lest we do to our children what you have done to us. Your parents were the Greatest Generation, yours is The Most Selfish Generation. That silly baby boomers are so myopic they can't connect the dots is pathetic, but not surprising.

  • Michael

    I came to this post late, but I like it. Yes, people "deown" thing because they do not have enough money, but lack of money has positive benefits. It forces us to consider why we are buying something: Is it of enough personal value to spend the money?

  • Michael

    I came to this post late, but I like it. Yes, people "deonw" thing because they do not have enough money, but lack of money has positive benefits. It forces us to consider why we are buying something. Is it of enough personal value to spend the money?