Online Reporter
Big Business Ideas
Stephene Chikozho
SOME products are more durable than they were in the past. To maintain profits, companies have to find ways of encouraging replacement purchasing.
New versions of existing products are regularly restyled and given added features to create products that owners will want to buy.
In a world where innovation moves swiftly, African entrepreneurs understand that the desire for the latest and greatest is a powerful force shaping consumer behaviour.
“Our consumers’ desire for the latest innovations pushes us to constantly evolve and deliver products that not only meet but exceed expectations,” says Nigerian entrepreneur Mr Adebayo Ogunlesi.
“Built to last” may sound like an essential in any form of production, yet some manufacturers produce items that they know will become obsolete in just a few years.
This policy ensures that customers continue to buy new goods.
Products are replaced, either because their components wear out, or because they are surpassed by products with new features.
In the past, items such as light bulbs were made to fail sooner rather than later.
Nowadays, items such as printer ink cartridges, batteries and components for appliances can be difficult or expensive to replace, making it tempting to buy a new version of the product, instead.
Many goods, such as pens or razors, have become disposable.
They are cheap to make and easy to replace.
“As entrepreneurs, we see the demand for better and sooner as a call to innovate responsibly, ensuring that our growth benefits all,” confirms East African entrepreneur Mr Ashish Thakkar.
Update styling
US industrial designer Mr Brooke Stevens defined the term “planned obsolescence” as instilling in consumers “the desire to own something a little better, a little sooner than necessary”.
The strategy of planned obsolescence was originally developed by General Motors, which realised that advancing technology would adversely affect its future business.
From the 1950s to the present, it began updating the styling of radiator grills, taillights and bodywork every few years to encourage motorists to replace their cars more often.
Over the last 30 years, as technology has advanced, cars have become even more durable and reliable. Today, new cars are built to last.
On good roads, with regular servicing, the engine and transmission of a new car will still provide reliable service for over 400 000 kilometres.
Typically, with average usage, this equates to an expected useful life of more than a decade. If motorists only replace their vehicle once every 10 years, this would lead to low sales for car manufacturers.
To generate more sales, many carmakers now set out to create planned obsolescence to speed up replacement purchase by giving cars regular facelifts.
The redesigns are intended to encourage status-conscious motorists to ditch their still perfectly good vehicles for the latest body shape.
As such, in this day, the quest for “better and sooner” drives entrepreneurs to continuously innovate, pushing the boundaries of what is possible in the marketplace.
New features
Car manufacturers also employ various other tactics to persuade consumers to update their vehicles.
New car models incorporate cutting-edge features such as touch-screen multimedia control systems for in-car entertainment, or additional safety systems, such as technology that warns about lane departure and potential collisions.
Phone manufacturers, such as Samsung and Apple, use planned obsolescence to increase revenue by persuading consumers to replace still-usable cell phones or tablets with something newer and better.
In this highly competitive market, the rewards go to the company that creates planned obsolescence soonest, which gives it the fastest rates of replacement purchase.
Status anxiety
Soccer teams also take advantage of planned obsolescence. At the beginning of each season, most teams release at least two replica uniforms for fans to buy.
The home and away shirts are restyled to be noticeably different from last year’s uniform. This type of planned obsolescence is based on status anxiety.
Many fans will choose to buy the new shirt to keep up with other fans, or to show loyalty to their team. They do this even though the shirt they bought a year ago may still look as good as new.
While planned obsolescence presents significant challenges for African markets, it also offers an opportunity for innovation and leadership in sustainability.
As consumers become more aware of the implications of their purchasing decisions, the call for change is growing louder, signalling a shift towards a more sustainable and equitable marketplace.
Stephene Chikozho is the chief executive officer of Africa Business Inc. He writes in his personal capacity. He can be contacted on WhatsApp +263772409651 or email [email protected]
Tinaye Agere