Lifestyle Economics: from consuming 'just enough to live' to consuming to affirm lifestyle

kinh tế lifestyle - Ảnh 1. — Seminar guests learn about Mancode by PNJ jewelry products - Photo: QUANG DINH

"Lifestyle Economy - New growth driver of Ho Chi Minh City" organized by Tuoi Tre newspaper in collaboration with Ho Chi Minh City Department of Industry and Trade took place on the afternoon of December 5, with the support of Phu Nhuan Jewelry Joint Stock Company (PNJ) and Masterise Homes Real Estate Development Company Limited.

The workshop is a highlight within the framework of the forum "Lifestyle Economy - New Growth Driver of Ho Chi Minh City" to discuss lifestyle economy. This is an economic model that is taking shape strongly in Vietnam as consumers shift from buying to using to buying to express themselves, show their style, prioritize personalization and experience...

In his opening remarks, journalist Tran Xuan Toan - Deputy Editor-in-Chief of Tuoi Tre Newspaper - emphasized that the lifestyle economy will be one of the important driving forces of Ho Chi Minh City's economy, in the context that the city after the merger has space, scale and strong supply and demand.

Identifying the "need for personalization" as an important element of the lifestyle economy, Mr. Toan said that he always carries with him a pen made from recycled plastic, which reflects his personal habits and style, leading to the demand for products that meet this style. However, the lifestyle economy with these characteristics is still unfamiliar to the Vietnamese people.

Kinh tế Lifestyle: tiêu dùng 'cho đủ sống' sang tiêu dùng để khẳng định phong cách sống - Ảnh 3. — Journalist Tran Xuan Toan with a pen made from recycled plastic to affirm a green lifestyle, responsible consumption, a lifestyle consumption trend. - Photo: QUANG DINH

Tuoi Tre 's survey of participants in a live workshop showed that more than 62.5% of respondents said this economy "already exists", while 25% said this is a newly formed economy.

From a personal perspective, Mr. Toan believes that the current lifestyle economy in Ho Chi Minh City has an extremely large demand, as Generation Z, with many surveys showing that this is a consumer group that requires a high level of personalization across the fields of fashion , travel, beauty, health care, etc.

Regarding supply, Mr. Toan said that the current supply is available, with the capacity of domestic and foreign enterprises in Ho Chi Minh City. Thus, the problem will still be in policies to promote and connect the pieces of this economy. This is also the common opinion of the guests attending the workshop, when 76.2% answered that it will take the efforts of businesses and consumers, combined with the support of policies, to create the driving force of the lifestyle economy of Ho Chi Minh City.

"Thus, we will need to discuss and receive more comments from businesses, experts and leaders. So that the lifestyle economy can become the driving force for Ho Chi Minh City's development in the new period," Mr. Toan concluded.

When consumers buy experiences, they shape and affirm their 'identities'

Associate Professor Dr. Dinh Tien Minh, Senior Lecturer, Head of Marketing Department - Faculty of International Business & Marketing, UEH Business School, University of Economics Ho Chi Minh City, said that the concept of The Experience Economy (Pine & Gilmore, 1998) shows that the economy has shifted from goods, services and experiences.

Accordingly, lifestyle economy is one of the potential development directions for large cities. Because in addition to helping diversify the economy, lifestyle economy also builds urban identity, further improving the quality of life of society.

Lifestyle economy is the next step, when consumers do not just buy experiences but buy products/services to shape and affirm their "identity". These are personalized products and services aimed at the interests, needs for experiences, aesthetics and life values of each customer segment.

kinh tế lifestyle - Ảnh 3. — Dr. Dinh Tien Minh - senior lecturer, Head of Marketing Department - Faculty of International Business and Marketing - UEH Business School - UEH University presented the paper The role of lifestyle in modern consumer behavior - Photo: QUANG DINH

Taking drinking coffee as an example, Mr. Minh said that in the past, the purpose of drinking coffee was only to help stay awake for work.

The factors that consumers use to decide to buy a cup of coffee revolve around whether it tastes good, is convenient, cheap and fast.

But nowadays, besides helping to wake up, drinking coffee is also considered a way to start a new day professionally, creating a good mood. The behavior of society with a cup of branded coffee today is also different, such as taking pictures, showing taste, spending ability. It is also a way to express modern lifestyle. A cup of coffee has become an identity, a symbol.

Lifestyle economics contributes a lot to the economy

So what is the role of lifestyle economics in the general economy?, Associate Professor, Dr. Dinh Tien Minh asked himself.

According to him, lifestyle economy is contributing to diversifying the economy. Many international surveys also show that more and more people value health and lifestyle. This creates a shift in spending structure: from prioritizing tangible assets to prioritizing experiences and services that improve quality of life.

Even according to the report The Future of Asia - The New Face of Vietnamese Consumers (McKinsey), cited by Associate Professor Dr. Dinh Tien Minh, it is predicted that by 2035, over half of Vietnam's population will be in the middle class.

Associate Professor, Dr. Dinh Tien Minh emphasized: "At that time, this group strongly shifted from consuming "just enough to live" to consuming to affirm their lifestyle."

Consumers often buy a product not only because of its function but also because of its image or "brand personality" that suits their lifestyle. For example, Apple does not only sell phones but also sells a creative, different lifestyle, focusing on the customer experience first. Biti's Hunter has created a youthful, dynamic and adventurous lifestyle among Vietnamese youth.

Welcoming the new wave of consumption

In the context of Ho Chi Minh City aiming to become a creative and livable city by 2030, lifestyle economy is considered a new approach to help improve the quality of life, promote creative consumption and create urban identity. At the same time, with a young population, improved income and the ability to quickly embrace trends, Ho Chi Minh City has all the conditions to become the Lifestyle economic center of the region.

The workshop focused on discussing topics related to the lifestyle economic model from international experience to practical lessons for Vietnam and Ho Chi Minh City. It focused on clearly defining the Lifestyle economy and raising awareness, helping the public, businesses, investors and policy makers understand the concept, great potential and trends of the lifestyle economy for Vietnam.

At the same time, the workshop identified new consumer waves associated with culture, aesthetics, technology, tourism, cuisine, design and real estate.

This is also an opportunity for businesses to innovate their business models towards enhancing experiences, and at the same time recommend policies to improve the business environment for this sector.

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