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Technology and Changing Consumption Lifestyles
By the year 2027, annual consumption in Pakistan is expected to see significant growth, and this will inevitably have an environmental impact. The need for sustainable consumerism in Pakistan has never been more critical. The good news is that Pakistani consumers are increasingly willing to pay a premium for customised products that meet their needs and preferences. However, with this empowerment comes the responsibility for businesses to meet higher standards. In Pakistan, where consumer spending is crucial to fuelling the economy, trust in businesses is often lagging; and yet, building and maintaining consumer trust is essential for sustained economic growth. Promoting green technologies and eco-friendly products can play a significant role in this regard. The expanding middle class in Pakistan is demanding healthier consumer options, a trend that is shaping the future of consumption.
The rise of automation poses a significant challenge to inclusive consumption. If people lose their jobs to automation, their ability to fuel consumption-driven economic growth diminishes. It is therefore crucial to address the potential displacement caused by automation and ensure that economic growth remains inclusive. Viewed as an opportunity, people should transition from low-skill jobs to more sophisticated and higher-paid positions. However, the key lies in skill development and elevating labour standards.
Technology has revolutionised the way consumers shop and pay for goods and services and the Digital Payments Road Map outlined in the State Bank of Pakistan’s (SBP) Strategic Vision 2023-2028 aims to make digital payments as convenient, efficient and cost-effective as cash transactions. Key initiatives include expanding Raast, Pakistan’s instant payment system, to cover almost all retail and bulk payments, thereby strengthening the SBP’s capacity to enhance the use of digital payments and ultimately creating more data from the transactional economy. With the digital economy’s expansion, building consumer trust in online transactions is paramount. Ensuring robust cybersecurity measures, transparent data handling practices, and reliable online services are critical to gaining and maintaining consumer trust.
The Internet of Things (IoT) is set to revolutionise consumer behaviour intelligence in Pakistan. IoT devices can collect vast amounts of data on consumer preferences, habits and behaviours. This data can be used to gain deeper insights into consumer needs and tailor products and services accordingly. Smart home devices, wearable technology, smart internet-connected cars and connected appliances are just a few examples of how IoT can enhance consumer experiences and provide valuable data for businesses. AI is transforming marketing strategies through precision marketing. AI algorithms can analyse consumer data to create highly personalised marketing campaigns that resonate with individual preferences. This level of customisation will enhance the effectiveness of marketing efforts and increase consumer engagement. However, the ensuing abundance of information can also be overwhelming.
Businesses must strike a balance between providing valuable insights and avoiding information overload to ensure consumers can make confident and satisfying choices.
Changing consumption lifestyles will be greatly impacted by the integration of technology into businesses, a development that will enhance the decision-making process and improve consumer-business interactions. For consumers, technology provides access to vast amounts of information, allowing them to research products, compare prices, read reviews and make informed decisions based on their preferences and values. AI and IoT will enable personalised recommendations, tailoring suggestions to individual preferences and behaviours. Digital platforms like e-commerce and mobile payments will make shopping more convenient, enabling consumers to access goods and services from anywhere, at any time, thereby increasing the options available to them.
For brands and corporations, technology provides real-time data on consumer preferences and behaviours, enabling them to understand their audience better and offer products and services that are better aligned with consumer desires. AI-driven marketing strategies will allow brands to deliver targeted campaigns, increasing the relevance of their offerings and enhancing consumer engagement and satisfaction. Technology also supports rapid innovation and agility, enabling businesses to adapt their products and services quickly to meet evolving consumer demands and stay ahead of competitors. Additionally, digital platforms and tools such as chatbots and AI-powered assistants will improve customer services and support, streamlining the customer experience and fostering loyalty and trust. In essence, technology creates a symbiotic relationship where consumers benefit from enhanced choices and convenience, while brands are empowered to offer consumers more relevant and desired options.
The impact of technology on mall culture in Pakistan will be profound, transforming how consumers interact with physical retail spaces. E-commerce and digital payments will reduce foot traffic, prompting malls to integrate IoT and AI for personalised shopping experiences and optimise operations. Malls will either innovate with click-and-collect options, virtual shopping assistants, and interactive displays or become obsolete spaces and ultimately shut down. Evolving into community hubs for socialising and events can greatly impact commercial real estate spaces in a very serious way. The IoT and AI will also impact the consumption lifestyle, where owning assets will move to a more digital-centric wealth, resulting in more compact living spaces and a more recyclable digital asset.
The future of consumption in Pakistan is intricately linked to technological advancements, infrastructural development and sustainable practices. As the country prepares for significant demographic and economic changes, embracing these elements will be key to fostering a resilient and inclusive economy that benefits all segments of society. One thing is certain: consumption lifestyles are moving towards a more digital and integrated future powered by IoT and AI.
Amir Jahangir is a global competitiveness, risk and development expert. He is CEO, Mishal Pakistan and Adjunct Professor of Narratology and Storytelling,SZABIST. aj@mishal.com.pk
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Changing consumption lifestyles will be greatly impacted by the integration of technology into businesses, a development that will enhance the decision-making process and improve consumer-business interactions. For consumers, technology provides access to vast amounts of information, allowing them to research products, compare prices, read reviews and make informed decisions based on their preferences and values. AI and IoT will enable personalised recommendations, tailoring suggestions to individual preferences and behaviours. Digital platforms like e-commerce and mobile payments will make shopping more convenient, enabling consumers to access goods and services from anywhere, at any time, thereby increasing the options available to them.
For brands and corporations, technology provides real-time data on consumer preferences and behaviours, enabling them to understand their audience better and offer products and services that are better aligned with consumer desires. AI-driven marketing strategies will allow brands to deliver targeted campaigns, increasing the relevance of their offerings and enhancing consumer engagement and satisfaction. Technology also supports rapid innovation and agility, enabling businesses to adapt their products and services quickly to meet evolving consumer demands and stay ahead of competitors. Additionally, digital platforms and tools such as chatbots and AI-powered assistants will improve customer services and support, streamlining the customer experience and fostering loyalty and trust. In essence, technology creates a symbiotic relationship where consumers benefit from enhanced choices and convenience, while brands are empowered to offer consumers more relevant and desired options.
The impact of technology on mall culture in Pakistan will be profound, transforming how consumers interact with physical retail spaces. E-commerce and digital payments will reduce foot traffic, prompting malls to integrate IoT and AI for personalised shopping experiences and optimise operations. Malls will either innovate with click-and-collect options, virtual shopping assistants, and interactive displays or become obsolete spaces and ultimately shut down. Evolving into community hubs for socialising and events can greatly impact commercial real estate spaces in a very serious way. The IoT and AI will also impact the consumption lifestyle, where owning assets will move to a more digital-centric wealth, resulting in more compact living spaces and a more recyclable digital asset.
The future of consumption in Pakistan is intricately linked to technological advancements, infrastructural development and sustainable practices. As the country prepares for significant demographic and economic changes, embracing these elements will be key to fostering a resilient and inclusive economy that benefits all segments of society. One thing is certain: consumption lifestyles are moving towards a more digital and integrated future powered by IoT and AI.
Amir Jahangir is a global competitiveness, risk and development expert. He is CEO, Mishal Pakistan and Adjunct Professor of Narratology and Storytelling,SZABIST. aj@mishal.com.pk