What happens when the experience economy meets the recession economy?

April 30, 2008

For one month I have been a phd student. One of the subjects to analyze during my studies will be the experience economy, so I have been studying the issue for a while. Reading at the economics section of the newspaper today (like this article), I can clearly see what I have been thinking during two years, a economis slowdown is approaching. I did not know how big is going to be, in fact nobody knows, but things might get serious. I mean is quite distressing, for example the stocks of Sturbucks (the  most repeated example about experience economy), falling to 15$ a share when it was almost 40$ 2 years ago. Of course, the stockmarket it’s not a place to measure the experience economy, is just an example.

So it kept me thinking. How is this economic downturn going to affect the experience economy? I have been recently surfing the net for answers and I found people in this field are also concern about it. Stephanie Weaver’s blog, two months ago, asked the question

What happens when the experience economy meets the recession economy?”

And invited several important people to answer as guest bloggers. Even Joe Pine participated. Probably all have a bias to answer everything will be fine, I mean history experts are not that well paid :) But I think they make some good points.

I think this subject can be related with the discussion about innovation. The other day I was watching a small video with the P&G CEO Lafley on innovation and recession (uploaded on April 17, 2008). He claimed something like innovation will always be in their strategy (it would be weird for him to say otherwise), and I think he’s right. In my thinking, Innovation is about surviving, not about making huge profits. Therefore my conclussion about the experience economy, is that business before had to keep their eyes out to improve their business in the fields of products, services and experiences. Now with a slowdown, it would not make sense to forget about offering experiences and solely concentrate in products and services.  

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