Can Fashion Brands Tap the Transformation Economy?
B. Joseph Pine II and James H. Gilmore have long described product innovation in consumer markets as a multi-staged “progression of economic value” from commodities to goods to services to experiences to personal transformations, where a better you becomes the product. Now the “Transformation Economy” is booming as luxury consumers shift their spend from traditional goods to experiences, especially those designed to recharge, revitalize and improve well-being.
In fashion, activewear players like Nike and Lululemon are tapping the trend. But Nike’s running clubs and Lululemon’s yoga classes ultimately function as sophisticated marketing experiences driving sales of apparel and shoes. Can fashion brands get in on the action and actually productize transformative experiences?