Instant gratification. Blame it on the GenZers or the Millennials, but the fact is, we all want it, and we want it now. Now that the post-pandemic world is causing many of us to stay home on a more regular basis, that need has expanded to include not only fast, but also convenient service. As businesses across industries are scrambling to meet the urgent demands of consumers, many emerging brands – especially those in the consumer technology space – are basing their business models on ease of use and instant gratification. But is that strategy sustainable in the long run?
Take the home fitness space and Peloton, for instance. As the pandemic forced people to look for convenient at-home workout alternatives, Peloton’s business exploded. However, with the high cost of equipment and the fact that it could only be used for one purpose, the company’s sales eventually reached a saturation point. That, coupled with technical issues with some of its products, resulted in a rapid fall from grace. Alternatively, the groundbreaking VR fitness app FitXR available on the Oculus Quest, a proven multi-use entity with a much lower cost of entry, is still performing like gangbusters. Because the company focuses on what it knows as opposed to building expensive hardware, and since the nascent VR fitness space is just barely getting started, there is unlimited growth potential for FitXR.
The grocery delivery space was also hugely impacted by the pandemic and its aftermath. In particular, there was a rise of a number of instant delivery apps that promised to bring groceries to your door within the hour. And while some – like European-based Gorillas – succeeded in scratching the instant gratification itch, other upstarts like JOKR and Fridge No More didn’t have the infrastructure to survive. More established companies like Instacart and Whole Foods (via Amazon), meanwhile, were able to compete by pivoting to a more rapid delivery strategy while also adhering to their core business model, and as a result, are still going strong today.
In today’s consumer market, instant gratification is an important consideration for companies looking to compete. But it’s not the only thing. Honing in on one trend and being quick to market may be lucrative in the short run, but it can’t last forever. Companies that truly thrive are those that look at their business holistically and develop models that don’t just sustain a trend, but also amplify their business when that trend has long since subsided.
