The current fiscal crisis has spawned recent articles about the de-globalization of the world economy and the need to create new mass consumption business models. How might this affect sustainable design?
I thank you for asking an important, albeit complex question, so I’ll try to provide some context for my response. The financial crisis has triggered a global recession resulting in the contraction of large consumer economies like that of the US, as growing numbers of people experience job loss along with decreased asset values. These factors have combined to send consumer spending into a downward spiral in many parts of the world, derailing global economic growth plans.
Events are causing some economists to speculate on what a global economy will be like in a ‘post financial crisis’ world. The baseline question is this: will consumers change their spending, savings, and lifestyle habits in fundamental ways over the long term? During the 1930’s, consumption contracted, savings soared, and businesses tried to adjust to fewer discretionary dollars. Today, this model has significant implications for the design profession and for businesses pursuing sustainable design strategies as they try to ponder the future.
In the near-term we are seeing many consumers focusing on value. They are buying fewer ‘things’ beyond essentials, and non-essential purchases are meeting a more stringent evaluation of the value proposition. That’s good news for stores like Wal-Mart. This consumption model impacts medium- to higher-end goods most, resulting in fewer discretionary purchases. Many consumers are saying one of three things: “What I have is good enough; I can live without that; or, I really don’t need so much.”