Consumption is an important element of human civilization. The success of modern economies depends, to a large extent, on the level and nature of consumption. From hunter-gatherers, whose consumption was survival-focused, to millennia, for whom consumption is about satisfying aspirations, the nature of consumerism has seen a tremendous change.
change in consumption
The perception of consumption has changed and today many streams of thought co-exist. The ancient Greek philosopher Diogenes famously showed his contempt for material things by living in a barrel. Since the Industrial Revolution, the rise of the middle class in developed countries has led to an increase in consumption. While on the one hand, the acquisition and display of material wealth is accepted and even appreciated by a large section of the society, another stream of thought advocates minimalism. The COVID-19 pandemic brought about a change in consumer behaviour. The lockdown brought more people into the realm of e-commerce. Due to the economic impact of the pandemic, the world witnessed a reduction in demand. But the post-pandemic recovery and suppressed consumerism are now leading to ‘vengeance shopping’.
Modern consumerism is not only about wanting more but also about wanting it fast. We are in the era of ‘Hyper Lapse Consumerism’ – the noise of being the fastest to reach the consumer. The ubiquitous growth of the Internet and the rise of e-commerce have led to hyperlapse consumerism, which refers not only to the type of products sold but also to the ease with which consumers order them and the speed with which such products are sold. is distributed to. According to a study by Invesp, 56% of online consumers between the ages of 18 and 34 expect goods ordered to be delivered on the same day, while 61% want their packages even faster – 1 to keep. – An order within 3 hours.
After e-commerce companies put shoes on the ground and even drones in the sky to make delivery their core competence, the competition to deliver faster and better is shaping consumer behavior and industry patterns. Recently in India we saw food and grocery delivery companies announcing 10-minute delivery for consumers in select cities. This is being done by strengthening hyper-local logistics networks, leveraging predictive algorithms, process optimization and in some cases providing incentives and incentives for delivery partners. When the 10-minute delivery plan was announced, policymakers and experts expressed concern that delivery professionals might resort to reckless driving and put themselves and others at risk for sticking to deadlines. Indiscriminate work pressure can lead to fatigue, mental health issues and other health issues among delivery professionals. In an industry that offers little or no social security for gig workers, this can have dire consequences. A NITI Aayog report, ‘India’s Booming Gig and Platform Economy’, suggests increasing social security for gig and platform workers, including paid sick leave, health access and insurance, and occupational illness and work accident insurance.
Hyperlapse consumerism is not without its benefits. According to NITI Aayog, in 2020-21, around 7.7 million employees were engaged in the gig economy, which is 1.5% of the total workforce in India. This is expected to increase to 23.5 million workers by 2029-30, which is 4.1% of the total livelihood in India. According to a report titled ‘Unlocking the Potential of the Gig Economy in India’ by Boston Consulting Group and Michael & Susan Dell Foundation, India’s growing gig economy has the potential to provide up to 90 million jobs in the non-farm economy alone. , generate over $250 billion in work volume and contribute 1.25% to the nation’s GDP over the long term.
At the core of gig economy growth is behavioral change among consumers. Shopping has become increasingly impersonal as well. Local kirana store owners have paved the way for ‘Delivery Mitras’ and OTPs. Many people no longer buy groceries on a monthly basis; They buy them in more pieces. Often, they prefer to have food delivered at home rather than going out.
way forward
There are two ways to proceed. Either we continue with hyperlapse consumerism or go back to a more comfortable delivery model. In a rush to come up with better value propositions for the customer, businesses often overlook the social, ethical, environmental and personal costs of business decisions. These decisions are influenced by, and further influence, consumer needs and behaviour. While advertising serves a positive purpose by educating consumers, more attention has been focused on the question of whether advertising is manipulative.
However, it would be unjust to burden businesses or consumers as a whole. For businesses, the pursuit of valuation, revenue, profit, and equity, the pursuit of social good, good health, and the environment should not always be mutually exclusive. Even for consumers, the pursuit of convenience and entertainment should not make them ignorant of the difficulties of many. Social critic Neil Postman likens the world to George Orwell’s 1984 and Aldous Huxley New World in the preface to his book amusing myself to death, In 1984, people are controlled by giving pain, whereas, in New WorldThey are controlled by giving pleasure.
While much has been written about the regulatory and technical aspects of 10-minute delivery, we must also analyze it from an ethical, social and practical point of view. Both consumers and businesses should be mindful of the broader consequences of their actions, and 360-degree analysis of business decisions should be made for the greater good. After all, technology gives us the advantage of solving many problems, but only knowledge can tell us which problems are solvable.
Divya Singh Rathore and Pratyush Prabhakar are public policy professionals. His Twitter handles @_divyarathore and @pratyushpbk . Huh