Back to the 80s?

For the first time since the mid-1980s, a clear shift in consumer behavior is emerging. The desire for experiences, in particular, is increasingly reaching its financial limits. And the consumer behavior of German citizens is not unaffected by economic developments. The proportion of experience consumers, who could constantly buy "nice things" that were "new on the market," increased steadily for a decade (1986: 26 – 1991: 33 – 1995: 35). A significant decline can be observed for the first time this year (1997: 28). During periods of prosperity, the proportion of consumers who could afford to place particular emphasis on "fashionable clothing" also increased (1986: 38 – 1991: 45 – 1995: 44). Here too, the downward trend (1997: 41 %) is clearly noticeable for the first time this year. This is evident from representative comparative surveys conducted by the Leisure Research Institute of British American Tobacco, in which 2,000 people aged 14 and over were asked about their consumption habits.

From spending to squandering is just one step away.

A new era of austerity measures has begun—in both the private and public sectors. The desire for a better life remains, but its realization must also be affordable in the long run. "For ten years, the trend toward experiential consumption was the guiding principle. Now, the peak of what is still affordable has clearly been reached and, in some cases, even surpassed," says Prof. Dr. Horst W. Opaschowski, head of the institute. "The retail sector (e.g., clothing, furniture, groceries) has long been feeling the effects of the restrictions—soon, the wave of cutbacks will also reach leisure sectors such as hobbies, sports, and vacations." Leisure consumption is traditionally the last area to be cut because financial restrictions are subjectively hardest to accept here: The experiential value has traditionally determined the amount of money spent. But now, for the first time, we have reached the point where spending is just a step away from overspending.

For ten years, many Germans let their emotions guide their leisure-time consumption more than their wallets. They became divided consumers: what they overspent on weekend experiences, they had to make up for during the week on essential necessities. They were thus equally adept at saving and wasting. A good third of Germans readily admitted to spending "too much money in their leisure time"—a figure that was on the rise: 1986: 28; 1991: 34; 1995: 35. Here, too, a shift in opinion is now evident. The proportion of Germans who live lavishly and beyond their means in their leisure time is decreasing again (1997: 31).

Opaschowski: "Falling real incomes are making consumers aware that hunger is once again just as important as the hunger for experiences." Consumer experiences aren't losing their appeal—but basic needs like food, housing, and clothing must first be secured. This is an experience that East Germans have had for decades. Consequently, citizens in the former East Germany can afford the luxury of spending far less money (27% compared to 33% in West Germany). They are less easily dazzled or seduced by the experiential presentation of goods.

More zest for life than purchasing power: But the trend reversal is slowly reaching young people as well.

Young people remain the most consumer-oriented demographic. Significantly more often than the rest of the population, young people stated in the current survey that they "value fashionable leisurewear" (14- to 29-year-olds: 63 compared to the average: 41). More than half of all young people also readily admit that they often "spend too much money" in their free time (56 compared to 31), and one in five even declares: "Sometimes I shop like a maniac" (18 compared to 10). Everything that is currently "in" remains desirable for young people. There is no sign yet of a noticeable decline in their standard of living.

While young people have lowered their expectations somewhat compared to previous studies, their consumer attitude is still significantly more demanding than that of the general population. "Many continue to live beyond their means with hardly any money in their pockets. The children of Madonna and MTV are having considerable adjustment problems," says Professor Opaschowski. "As children of affluence, they have forgotten, or perhaps never had to learn, how to sometimes limit themselves when it comes to the finer things in life.""
For the younger generation, youth culture, consumer culture, and fun culture have largely become synonymous. They are very reluctant to give up their enjoyment of life and their fun of being young. In recent decades, they have been led to believe that more wealth and more consumption also make them happier. Now, suddenly, restraint is the order of the day. Many young people solve this problem by continuing to demonstrate more desire to buy than purchasing power. But the proportion of young people who are becoming aware of the current and future scarcity is slowly increasing. Nevertheless, the dwindling prosperity will become a serious challenge for many young people.

Between frugal consumption and consumer frenzy: A new two-class society is emerging.

The more some save, the more others can afford. A study by the Leisure Institute of British American Tobacco demonstrates that a new two-tier society is emerging in the consumer sector, comprised of frugal consumers and compulsive shoppers. Families and retirees stand on one side, while young adults, singles, and childless couples compete on the other. This is the only way to explain the booming Bundesliga, the surge in cinema attendance, and the boundless event tourism, from the Hockenheimring racetrack to the Love Parade and Michael Jackson concerts. One in four singles aged 25 to 49 (26 %) occasionally buys consumer goods for hobbies and sports, only to find they "hardly have time to use them." One in five 18- to 24-year-olds continues to consume according to the principle "I always have to have more" (22 %). And one in eight childless couples even openly admits to "sometimes buying like in a trance" (13 %).

With the trend toward a single-person society, the markets for experience-seeking consumers are clearly not dying out. Even if most Germans have to cut back on private consumption, there will still be enough experience-hungry consumers left, allowing providers to make a good, and sometimes even very good, living. This signals a development that has been a reality in the tourism industry for years: those who earn a lot and travel frequently will spend even more money on vacations in the future. But those who are short on cash and can only travel rarely will stay home even more often. Western consumer societies are increasingly having to grapple with the poverty-wealth paradox: as poverty and unemployment spread, new consumer worlds emerge and the leisure and experience industries expand: "bread and circuses" will continue to be a reality.