Have you ever considered, instead of buying a new piece of clothing, swapping it with a friend or thrifting through an op shop? Maybe you’ve rented a designer outfit for a special occasion rather than paying full price for something you’d only wear once. (ugh!) The way we access products and services is shifting, driven by economic pressures and changing consumer values.

Australians are among the world’s largest consumers of fashion, purchasing an average of 56 new clothing items annually, which equates to approximately 27 kilograms per person. (Source: Australian Insititute)

As the cost of living rises and sustainability becomes a priority, people are looking for smarter, more flexible ways to shop, travel, live, and even use technology.

Fashion: The Rise of Renting and Second-Hand Shopping

One of the most visible shifts is in fashion. Instead of buying new clothes, consumers are turning to rental services, resale platforms, and clothing swaps. This allows them to enjoy variety and high-end fashion without the financial or environmental costs. In Australia, platforms like The Volte make it easy to rent designer pieces for a fraction of the retail price. Meanwhile, global second-hand marketplaces like Depop, Threadup and Poshmark offer affordable, sustainable alternatives to fast fashion.

This change is significant considering Australians purchase an average of 56 new clothing items annually, surpassing the US at 53 items, the UK at 33, and China at 30. Unfortunately, more than 200,000 tonnes of clothing end up in Australian landfills each year, equivalent to nearly four Sydney Harbour Bridges in weight. 

Transportation: From Car Ownership to Car Sharing

Owning a car is no longer a necessity for many people, especially in urban areas. With rising fuel costs, insurance, and maintenance expenses, more consumers are opting for car-sharing services and flexible subscriptions. Companies like GoGet in Australia allow users to book a car when needed, avoiding the long-term financial commitment of ownership. Similarly, car subscription services like Carly and Flexgo provide access to different vehicle models for a monthly fee, appealing to those who prefer convenience and adaptability.

Approximately 15% of ride-sharing users choose these services to avoid purchasing a personal vehicle.  This suggests a segment of the population is actively opting for shared transportation over ownership. (source: carsharing.org)

Housing: Redefining the Australian Dream

Once, homeownership was the ultimate goal—the great Australian dream of a house with a backyard. But as property prices continue to soar, the dream has evolved. Many Australians now see apartment living as a more realistic option, while others have shifted even further, prioritising lifestyle over ownership and opting to rent long-term.

Platforms like OwnHome offer rent-to-own models, giving aspiring homeowners a chance to enter the market without an immediate massive deposit. Meanwhile, high-end build-to-rent developments are gaining traction, providing long-term renters with premium living experiences without the financial stress of a mortgage.

What does this mean for disposable income? For some, renting frees up cash flow for experiences, travel, and investments. For others, it means adjusting long-term financial goals to accommodate different pathways to wealth. As expectations around ownership shift, the way we allocate spending is changing too.

In Australia, Millennials—individuals aged 25 to 39—face distinct challenges in the housing market. As of 2021, approximately 55% of Millennials own their homes, a decrease from 62% of Generation X and 66% of Baby Boomers at the same age. (source:ABS)

The rapid advancement of technology and the high cost of the latest devices have made ownership less attractive. Instead of purchasing new gadgets outright, many consumers are opting for leasing and subscription-based models. Apple’s iPhone Upgrade Program, for instance, lets users pay a monthly fee to get the newest iPhone model each year, eliminating the hassle of reselling old devices. This approach ensures consumers stay up to date with the latest tech without significant upfront costs.

Subscription: In Australia, this trend is evident in the entertainment sector, where households maintain an average of 2.3 active streaming service subscriptions. (Source: Capterra)

Why Are We Moving Away from Ownership?

Several economic and social factors are driving these changes:

? Rising Cost of Living: With increasing housing, food, and transport expenses, consumers are more mindful of their spending and looking for cost-effective alternatives.

? Economic uncertainty: Many are hesitant to make large financial commitments, preferring flexible options to adjust their budgets as needed.

? Sustainability Concerns: Renting, sharing, and buying secondhand help reduce waste, making these options more appealing to environmentally conscious consumers.

The sharing economy, characterized by peer-to-peer access to goods and services facilitated by digital platforms, is rapidly expanding in Australia. Valued at approximately USD 10.11 billion in 2022, the Australian sharing economy is projected to reach USD 12.45 billion by 2029. (source: Mobility Foresights)

How Can Businesses Adapt?

As consumer habits shift, businesses must rethink their offerings. How can you make your product or service more palatable in today’s economy? Consider:

? Bite-Sized Offerings: Beauty retailers like Mecca offer mini versions of popular products, allowing customers to try before committing to full-size items. Could your business introduce a trial or sample version of your product?

? Subscription Models: Instead of one-time purchases, businesses are offering monthly subscription services. Whether it’s software, skincare, or even coffee, spreading the cost over time makes it more accessible. Could your product or service benefit from a more affordable, ongoing payment model?

The Future of Consumption

As economic pressures and sustainability concerns continue to shape consumer behaviour, businesses that offer flexibility, affordability, and access to ownership will thrive. Whether it’s through rental services, subscriptions, or second-hand marketplaces, consumers are redefining how they shop, travel, live, and use technology.

The big question is: How can you make your product or service more adaptable to today’s changing consumer needs?