Written by Fanny Lundvall. Translated by Loise Hedberg.
Thinc Project had the opportunity to interview Erik Modig, assistant professor and lecturer in Marketing at the Stockholm School of Economics, about his views on industry changes as a response to more sustainable consumption. Apart from his work at the Stockholm School of Economics, Modig has published four books about marketing and communication, as well as run an art gallery and produced art work himself.
Quantity sales are advertised in a large scale. How is this reflected in consumption?
Modig: There is a great challenge between short-term and long-term [consumption] and how the customer budgets. You often budget very shortsightedly; now I‘m going to buy a couch — how much money do I have right now to buy one? There are not many customers who think that they should have a couch for 20 years and who save money for the next purchase. There are also few who think that it is worth it to pay 50% more for a more expensive couch which will last longer.
Can you as a marketer make customers more aware of the problems above, or do the marketers already do that?
Modig: There are not many marketers who do that since customers tend to focus on what is right here and right now. You highlight what the customer gains right now and right here from the high quality products rather than emphasizing how good the couch will look good in 8 years. The customer, generally, doesn’t care about that since they want something which looks good right here, right now. Forcing the customers to think in a certain way during their [product] assessments might be hard. There are probably certain categories where you can get people to think more longsightedly. You can try, but I don’t see any long-term and widespread strategy concerning that.
Do you have an example of a category/company which is good at sustainable marketing?
Modig: One sector is high quality furniture, for example. There is the company ASKET, which focuses on timeless design and long-term sustainable fashion. As a brand, you have to try to create change but also adapt to where the sector finds itself today. People can accept a timeless design within certain categories of products, but some categories will tend to consist of more fast fashion. It will probably continue to be mixed.
What would happen if people started shopping to a lesser extent? If the short-term mentality would decrease drastically, would many companies experience distress and what would the next challenge be?
Modig: We’ll see during this time that we are living in right now. It really is a test. Some business will of course disappear but the question is: What will arise instead and which companies will survive? One example is bread. 15 years ago, people baked a lot at home, then mass production came and people basically just wanted to be able to buy the mass produced bread. But lately, there has been a backlash and bakeries start popping up. People have gone back to the high quality bread again. It’s like a pendulum movement and the bread is a good example of a line of business which has made a resurgence from being a proper fast fashion 15-20 years ago.
Has this change come naturally or has it been pushed for from a marketing perspective? How come the sector for bread has shifted?
Modig: It is hard to know what manipulates macro trends. It can be anything from the consumer movement, sustainability, gluten discussion, etc. Often, it’s a few brands that push some type of development.
Is it better, socio-economically, to make a change toward long-term thinking, or will it disfavor us in some other way?
Modig: New companies and other lines of business will emerge. Cobblers and tailors will probably experience an upswing. Second hand as well. Washing methods will change and new, innovative solutions will emerge as a solution to the problem that clothes are worn out faster when we wash them as we currently do. But despite that solutions to existing problems arise, we must create a mindset where you change your attitude. One example is a spray which removes odor from clothes instead of washing them. This presumes that we will actually use this spray as a solution.
Maybe that is the only thing which will happen, a shift in the industry?
Modig: Yes, and also how you consume. One example is Volvo who think that they will own all their cars in the future since ownership of a car is very unsustainable. You simply use it too little and therefore it is expensive to own. I think that in the future, people will instead rent their car from different companies. “Now I’m subscribing to Volvo, next month it’ll be BMW”. This will of course make costs visible in another way, which in itself is a challenge. Industries will develop in different ways.
Many want their own things; you don’t want to buy a shirt that someone else has owned. How do you think that attitude can be changed?
Modig: It is a huge challenge, primarily for those who use sustainable business models. It remains to be seen how this will change. There are for example some attitudes nowadays which were completely different several years ago. One example is ownership of music. Before, you bought the latest record from your favorite artist; today practically nobody does that. The same holds with DVD movies. The whole entertainment industry has changed. You consume through a type of subscription where you shift from for example Netflix and HBO depending on what you feel like. Airbnb is also a good example. In the start, it was a strange thing: You rent someone else’s home. Will people keep their things around the home? Today no one cares about this and it has become natural.
Do you believe that it is just about normalizing, or can you use marketing to promote a shift?
Modig: It is a combination of a player on the market who has pushed for change, together with it fitting with current trends. Perhaps the current market doesn’t work in a certain way anymore. Then a problem arises. The problem can be solved and a possibility for change opens up. It probably starts with a niche where something else will push for it, such as Airbnb.
Do you personally have any tips concerning sustainable consumption?
Modig: Many years ago, I had lots of clothes in my wardrobe which I didn’t like. I decided, for one year, to make a change and only buy high quality garments which would last for a long time. Those garments were often more expensive, which of course was a bummer during the first year. But after 2-3 years I had the world’s best wardrobe. Everything is about the change. Now, after 10 years, I have ten perfect jackets with immortal design which can of course become a bit tedious, but then I can instead buy a bag or something similar. The transition can be hard but it is important to see it from a long-term perspective.
What is the solution to achieve change?
Modig: Regulations, brands, influencers, consumers, and media. There is a big problem with influencers who get paid by brands who give them products since it reinforces the norm to constantly have something new. Instead, the focus should have been put on how you for instance match 20 different garments. Hopefully solutions will emerge where you can wear new garments every day through a subscription, for example. Like Spotify, where you get new music every day.
Photograph by Fanny Lundvall.