futures insights: Leased Standard of Living
futures insights: by insight & foresight looks at trends, weak signals, and emerging change that could impact for-purpose organisations 5 to 10 years from now. The content is design fiction written from a futures viewpoint about possibilities that may or may not eventuate and should not be read as fact. It is designed to support creative, exploratory thinking about futures and what might happen next. Enjoy!
In a world just beyond the horizon...
Saara was curious about what the Platinum level would include. She knew that it was significantly more expensive than Gold but she had been told by a friend that it was worth the extra money. Saara decided to upgrade to Platinum and see for herself.
The first thing she noticed when her apartment was upgraded was the quality of the furniture. It was much nicer than anything she had ever had before. The next thing she noticed was the groceries. They were high quality and much healthier than anything she had ever eaten before. Finally, Saara took a look at her entertainment vouchers. She could choose from any restaurant in the city, any beauty treatment, and any type of leisure activity she wanted. She quickly decided that she wanted to try out all the different restaurants in the city as soon as she could.
After a few months, Saara was very happy with her decision to upgrade to Platinum. She had never been so well-rested, well-fed, and entertained. Plus, she didn't have to worry about a thing. Her apartment was always clean and she never had to worry about running out of food. The only thing she had to do was enjoy her life and make one single monthly payment.
One monthly payment, one lifestyle provided in full.
Single payment lifestyle companies had become more and more popular in the late 2030s as people become busier and busier. The rise of buy now pay later (BNPL) services had conditioned people to aspire to higher levels of consumption and services, paid for in small micropayments over time. For many, as long as they met the payments on time there was little downside. For those that struggled the resultant interest and penalty payments led to crippling debt and a life of struggle.
In 2022 the addition to the BNPL product mix of restaurants, alcohol, and bar purchases, in addition to fashion, signaled a dramatic increase in usage. Automated payments emerged as an essential component of the value proposition for brands and became the fifth P in marketing; Product, Place, Price, Promotion, and Payment. Marketers became very effective at influencing a consumer's willingness to buy by changing payment terms, such as spreading out payments over time. From a consumer behavior perspective, this was the beginning of the end of self-control.
The key to successful marketing and sales in the late 2020s was to get customers onto a monthly payment plan that they could afford. This allowed companies to increase prices without affecting demand as people could simply spread out their payments over time. As long as people kept up with their monthly payments, they could continue to consume at the same level. If they fell behind, they would be hit with late fees and interest charges that would quickly spiral out of control.
Explosive growth.
The BNPL trend then grew steadily for a few years but in 2039 it exploded. That was the year that the first major player, Life on Lease, entered the market. Offering an all-in-one solution to the stresses of modern life, they quickly gained a huge following. Life on Lease grew quickly, as it expanded its product offerings and geographical footprint. In just four years they had a customer base of over 40 million subscribers in North America alone.
The trend for single payment lifestyle companies continued to grow in popularity and by 2048 over 250 million people were using them globally. The services offered had also expanded significantly, with most companies now offering a comprehensive package that included housing, food, education, transportation, and entertainment. They also had added child packages for every stage of a child's life.
The benefits of these services were many. For one, they freed up people's time by taking care of the hassles of daily life. Secondly, they allowed people to live a lifestyle that possibly they otherwise couldn't afford. And lastly, they provided a sense of community as customers from each of the companies offering single payment lifestyle products often clustered together to attract more services and benefits collectively. In some cases rather than ask a person "where do you live?" when they first met, people now ask "who are you subscribed to?" In dating, marrying, and making friends choosing people who were signed up to the same company as you made more sense and offered greater mutual benefits.
Not everything was perfect.
There were of course some drawbacks to the single payment lifestyle companies. Firstly, they were often very expensive and out of reach for many people. The monthly payments could easily exceed the average person's salary. Secondly, they could be inflexible, with customers often locked into long-term contracts. And lastly, there was always the possibility that the company you were subscribed to could go out of business, leaving you stranded. There was also the issue of quality. Some of these companies cut corners to make a profit and as a result, the quality of their products and services suffered. Lastly, there was the issue of dependence. Many people who used these services became dependent on them and found it very difficult to go back to living a traditional lifestyle. The Government has also started to transfer the delivery of some welfare services from not-for-profits to these companies, creating a set of "below Bronze" entry-level packages for welfare recipients.
Despite the drawbacks, the trend for single payment lifestyle companies continued to grow. In 2060, over 3 billion people were using them globally. The services they offered had also expanded significantly, with most companies now offering a comprehensive package that included housing, food, education, family support, transportation, and entertainment. Many of the lifestyle payment companies had started buying land and building apartments and even whole satellite towns where individuals and families signed up for their service would all live together. Generations born at this time spent their whole life subscribed to one company.
There was a lot of debate about whether this trend was good or bad for society. Some people loved the convenience and freedom that it offered. Others worry that it would lead to people becoming even more materialistic and consumerist. Only time will tell what the long-term effects of this trend will be.
What happened to Saara?
For Saara, Platinum level offered her everything she needed for one monthly payment. She had started dating another Platinum level customer and they were considering merging their payment plans into a couple's subscription. They had also started saving for an infant's Platinum subscription so if they started a family their child could start life at the Platinum level and have everything she/he needed at the highest possible standard.
How could the emergence of leased standard of living impact your organisation?
Acknowledgement
The identification of these emerging change concepts started with the Futures Platform™ database of trends, signals and emerging change. You can read more about the Futures Platform™ here . insight & foresight is a paying customer of the Futures Platform™ and we use the data to support our clients think and plan for their futures.
