The Evolution of Consumer Behavior: From Material to Experiential, and the Rise of Unique Experiences

The Evolution of Consumer Behavior: From Material to Experiential, and the Rise of Unique Experiences

In today's digital age, the widespread use of mobile devices such as smartphones and tablets has led to a flood of personal experiences shared on social media. As a result, there is a sense of familiarity in every experience we encounter. This phenomenon has given rise to what we call "material consumption," where the focus is primarily on the consumption of physical goods.

However, consumers have started to seek more meaningful experiences beyond material possessions. This shift has led to the rise of "experiential consumption," which includes activities such as traveling, dining out, engaging in hobbies, and indulging in relaxation activities like yoga, massages, and spas. These experiences provide a sense of fulfillment that material possessions may no longer offer.

Interestingly, the desire for experiences that cannot be replicated has given birth to a new form of consumption known as "unique experiences" or "Tokimeki" in Japanese. These are experiences that can only be enjoyed in a specific time and place, and they hold great value for consumers. Examples of unique experiences include attending festivals, embarking on pilgrimages to sacred sites, participating in idol elections, watching the World Cup, visiting collaboration cafes, attending fan meetings, and dressing up for Halloween gatherings.

The advancement and widespread adoption of tools that enable the sharing of these experiences have led to a unique phenomenon. People can now virtually experience the experiences of others, leading some individuals to lose their enthusiasm for firsthand experiences. This phenomenon, known as "social fatigue" or "SNS fatigue," has caused a decrease in the desire for experiential consumption. As a result, consumers are beginning to lose interest in engaging in activities alone and seeking new ways to fulfill their desires.

In a different context, the article "PowerToTheConsumer: Insights from 30 Leading Consumer AI Founders, Operators, and Thinkers" explores the factors that contribute to the success of consumer AI companies. It highlights that the true value and competitive advantage lie not solely in the AI technology itself but in other factors such as network effects, proprietary data, being first-to-market, building engaged communities, and providing a superior user experience.

To build a sustainable competitive advantage, network effects remain crucial. Proprietary data can play a vital role in engineering these network effects and accelerating go-to-market strategies. OpenAI, for example, leveraged its vast and high-quality dataset and established itself as a pioneer in the field, gaining recognition through its research papers and founders' profiles. Additionally, being first-to-market, cultivating engaged communities, and delivering exceptional customer experiences are viable approaches to establishing long-term moats in the consumer AI industry.

It is essential to recognize that language holds a unique place in our understanding and communication. The knowledge conveyed through context, emotions, and images cannot be fully replaced by language alone. While language models play a significant role, they should be viewed as a measure rather than a goal in themselves. Furthermore, the limitations of compute power often go unnoticed, particularly in the context of startups collecting proprietary datasets.

In conclusion, consumer behavior has evolved from material consumption to experiential consumption, and now to the pursuit of unique experiences. The desire for one-of-a-kind experiences has been fueled by the ability to virtually experience the adventures of others. However, this has also led to social fatigue and a decline in the desire for individual experiences. To succeed in the consumer AI industry, companies must focus on building network effects, leveraging proprietary data, being first-to-market, fostering engaged communities, and delivering exceptional user experiences.

Actionable Advice:

• 1. Foster a sense of community: Build engaged communities around your product or service to create a network effect and establish a loyal customer base.

• 2. Leverage proprietary data: Collect and utilize unique datasets to gain a competitive advantage and facilitate go-to-market strategies.

• 3. Prioritize user experience: Invest in delivering a seamless and magical customer experience to differentiate your offering from competitors and create a long-term moat.

By understanding these evolving consumer trends and leveraging the insights from successful AI entrepreneurs, companies can navigate the changing landscape and thrive in the age of unique experiences and advanced technology.