Consumption and commerce are essential

In my writings and my public position, I criticize several aspects of consumption, especially excesses on the part of consumers and speculation on the part of sellers. However, I am in no way against the consumption and I do not preach in favour of self deprivation or hard core simple living. These solutions are so extreme that they can do nothing but put off most consumers… rather than encourage them to consume more sensibly. On the contrary, I believe that, subject to responsible practices on both sides, consumption and commerce are essential in two ways. They are first of all mandatory from an economic perspective. In fact, strong domestic consumption is what has so far saved Canada from the recession in the United States since the summer of 2007. According to the Conference Board of Canada, «Consumers Help Canadian Economy Overcome the U.S. Twin Shocks».

Consumption is just as essential from a human standpoint. Everyone wants to have fun, consume, acquire goods and use services that make life more enjoyable, things that go beyond the strict necessities of life.

In my most recent book, « Consommation et luxe, La voie de l’excès et de l’illusion » (Consumption and luxury, The path of excess and illusion), I stress the essential, universal and anthropological nature of luxury consumption, resting my argument on Shakespeare and Lipovetsky.

Trade and consumption have been an essential part of human development, they have existed for millennia. It would be idealistic to attempt stopping such activities in the twenty-first century.

The shopping center was born in the 1950s. Much like motorways, population migration to the suburbs made essential construction of this new mode of distribution: the shopping mall. Mega shopping centers are simply an evolution of retailing; they are increasingly places both of necessity and pleasure.

Doesn’t the Quartier Dix30 plan to open a Mega private health care clinic, something many Quebecers feel to be a necessity? Furthermore, their commercial offer goes well beyond the traditional commercial function; these new commercial centers are referred to as Life Style Shopping Centers.

The Quartier Dix30 , the largest Life Style Shopping Center in Canada, recreates the illusion of a Main Street in old days villages, an artery mainly intended to be functional, as it centralized shops people needed. These new malls’ main function is symbolic; it is also designed to give you a sensory experience.

Apart from «Main Street» and the Theatre, many other shopping malls incorporate all other aspects of Quartier Dix30: free indoor and outdoor parking, a variety of restaurants, cinemas, and so on. What is so special about a Life Style Shopping Center? As for a perfume or a luxury restaurant, packaging and communication make the product.

Positioning and selling Quartier Dix30 as an entertainment center is inspired by Lipovetsky’s pleasure-purchase logic: «Today, even the consumption of material goods tends to switch to an experiential logic, shopping in general bathing in a recreational and hedonic atmosphere» (G. Lipovetsky, Le bonheur paradoxal. Essai sur la société d’hyperconsommation, Paris, Gallimard, 2006, p. 60).

Some will say that architects of this project only encourage consumption, and they will be right. However, we are not victims but accomplices of the consumer society; it’s up to us to consume better and less. Furthermore, these promoters help make people dream in a world that really needs; Quartier Dix30, it’s not a shopping mall, it’s a recreotouristic center in which rich people and less affluent ones can find what they want.

Purchasing behaviour in open-type Mega shopping malls is not the same as in a traditional closed-type mall. The latter promotes shopping, walking, often without a specific purchase in mind, even walking for health purposes, as some walking clubs practise this activity in winter. People who spend time in malls say that they get pleasure from these visits; they will even stop for coffee at one of many indoor terraces found in these places. Some people living in the city cannot understand what pleasure there is in this activity; as far as I’m concerned, I see no difference between having coffee and mingling with people in such places or doing so one of Montreal’s many cafes.

This type of behaviour can also be observed on the «main street» of a Life Style Shopping center such as Quartier Dix30. However, behaviour changes radically in shops that stand away from this central point. People who go into these shops often have a specific purchase in mind, they have made their choice of product and point of sale on the Internet or in a promotional brochure; they go directly to selected store, do their shopping and then often leave the mall.

In large cities such as Montreal, trade has rather developed in a linear fashion, Ste-Catherine Street for instance; much like a mall, some of these commercial streets even feature a canopy that protects consumers from bad weather while shopping, Plaza St-Hubert for instance. More recently, commercial spaces have flourished in Montreal’s underground, Montreal’s Indoor City.

Consider this map of Montreal’s Indoor City.

According to the Observatoire de la Ville intérieure, «The indoor city is a set of buildings connected by interior walkways, belonging to distinct owners, offering a diversity of functions, namely public transportation, shopping malls, office space and leisure activities, where the use of public space has been settled by an agreement with the municipal authorities». As of December 31 2004, Montreal’s Indoor City featured 1,366 shops of all types and 477 restaurants of all categories.

What difference is there really between Montreal’s Indoor City, Plaza St-Hubert, Ste-Catherine Street, a portion of which is to be pedestrianized in summer 2008, and the Quartier Dix 30? The answer is simple: NONE!

Why then criticize Mega shopping malls?

Results of the mini survey about Mega shopping centers

Since the televised debate on «Il va y avoir du sport», on the theme «For or against Mega shopping centers», some expressed their surprise seeing me present the positive aspects of Mega shopping centers.

It is rather curious because I have never been moralizing towards consumption; as I write in my blog presentation, «I claim myself to be a moderate critic of consumption. While I recognize the benefits, even the necessity, of a measured and responsible consumption, I want to denounce its pernicious effects and questionable practices. »

I am thus especially pleased to have participated in this show because it was an opportunity for me to clarify my position with regards to consumption.

One must also not forget that this kind of televised debate is planned to polarize the debate… to better entertain the audience; the producer most certainly does not want participants in the debate to present the pros and cons of an issue, which would have been my preferred position.

Finally, the debate having been focused on issues related to the environment, ecology and urban development, little analysis was made of the shopping center itself.

In my next column, I will thus further clarify my position on consumption and Mega shopping centers. For now, here are the results of last week’s mini survey.

Results take into account responses from the English and French blogs, 82 people in all; statistically speaking, this number of respondents is low. The error margin is thus higher than the norm: 11% at a 95% confidence level, the proverbial 19 times out of 20. As with all such «question of the day» type surveys, now found in several media, the sample has not been selected according using a probabilistic methodology.

Clicking here will allow you to see a graph presenting, in percentages, responses obtained, as well as the minimum and maximum based on the error margin.

Given this 11% error margin, one can say that people are almost equally divided on the question «For or against Mega shopping centers? » Nothing wondrous!

In the midst of those "Against", one can find amongst others druids of the environment and hard core apostles of simple living, for whom shopping malls, Mega or not, are dens of vice. There are however a number of people who do not like the concept of «Mega Center», as I was saying in Nathalie Villeneuve’s excellent article «Les limites de la démesure» (The limits of excessiveness).

Climate is obviously a drawback and purchase behaviour is different from what one can observe in traditional closed mall type centers.

In my next column, I will elaborate on this issue in addition to clarifying my position on consumption and Mega shopping centers.

For or against Mega shopping centers?

Vous pouvez lire cette chronique en français.

In anticipation of my participation in the IL VA Y AVOIR DU SPORT show, I submit a question on the selected theme:

FOR OR AGAINST MEGA SHOPPING CENTERS?

The show will be broadcasted on Tele-Quebec Friday, March 14 at 7:30 PM, Saturday, March 15 at 2:30 PM and Sunday, March 16 at 6:30 PM.

The «Quartier Dix 30» is an example of Mega shopping center.

Purchasing a vehicle: price, fuel consumption and style before the environment

In a chronicle published January 26, 2008 (French only), I reported the results of a mini-survey concerning the criteria deemed to be the most important when purchasing or leasing a vehicle. Clicking here will allow you to see a graph showing the number of responses received for the five assertions I considered the most important, having been chosen either by a majority, or by a minority of people who participated in the study.

Highlights are as follows. Three elements are considered among the most important by at least half of respondents [answers/total]: price (purchase) or monthly payment (lease) [29/32], fuel consumption [27/32] and vehicle aestheticism (style and color) [17/32]. Conversely, an item is considered important by only a small number of respondents: an ecological engine [3/32].

Now, The Globe and Mail recently published a survey involving 38,500 Canadians that the importance of 26 criteria involved in purchasing or leasing a vehicle. Clicking here will allow you to see the results of this study.

The five criteria deemed to be the most important are the following (% responses): Value for the money (30.7%), Fuel economy (28.4%), Reliability/dependability (27.5%), Price/cost to buy (21.5%) and Exterior styling (19.5%). Environmental friendliness is relegated to the 23^rd rank, out of 26, with a meagre proportion of votes (2.2%).

In my January 26, 2008 chronicle (French only), I wrote that “an exploratory study is indicative of trends that need to be confirmed by other studies or supported by known facts”. The fact that three elements identified in my mini-survey are amongst the top five in the national poll shows the usefulness of exploratory studies. Without featuring the accuracy or statistical reliability of studies involving a large number of respondents (≥ 1000) selected through probability sampling, they are nevertheless indicative of major trends.

As for the fact that environmental considerations as a criteria for purchasing a vehicle only concern a very small minority of people in both studies, it strengthens the view that I supported in several columns of this blog, particularly that of June 7, 2007. I am more than ever sceptical about the willingness of Quebecers, and citizens of other Canadian provinces, to radically change their lifestyle to reduce polluting emissions.

MINI: the pleasure of accessible luxury

Next to the Hummer, the juggernaut I mentioned in several October and November 2007 columns, the MINI is Lilliputian. How can one not love its friendly face; according to surveys conducted by MINI Canada in 2007, its appearance is the most important factor in the purchase decision. Its remarkable sobriety, thanks to its 1.6 litre engine, is also very appealing (Note: Unless otherwise specified, all information about the MINI, slogans and advertising arguments cited are taken from the MINI’s Canadian website, consulted August 16 2007) ; in fact, it’s eligible to a $1,000 rebate from the ecoAUTO rebate program created by the Canadian government in 2006 (ecoAUTO Web site, consulted August 16 2007). This is another advantage, since the MINI buyer is price-sensitive; polls show that this factor is the second in order of importance (Note: this information is taken from survey results obtained from MINI Brossard whom I thank for its collaboration).

However, its sobriety does not prevent it from featuring a sporty behaviour, compared to that of a kart. Having performed a road test, I can vouch that this claim is not misleading; it’s easy for me to compare, since I drive a Honda CB900F, a nervous and agile motorcycle, now renamed the 919. I am not the only one to love the MINI: «Even in its wildest dreams, BMW could not expect any better: 800,000 units of the Mini produced in five years. That’s 700,000 more than the Bavarian manufacturer estimated when launching this model». (É. Lefrançois, « Mini Cooper S, Évoluer sans révolutionner », La Presse, July 16 2007, cahier L’auto, p. 10)

The company has found a market segment, which consists of people from all age groups, as evidenced by the polls, willing to pay slightly more to get a fun car. The manufacturer did not seek to solve a lower revenue problem by selling a more expensive product, but deliberately targeted a slightly higher-end market after having verified its existence. I don’t think we can accuse the company of chasing chimeras. For BMW, owner of the brand, it is a product line descent strategy; this strategy can be harmful for a brand, as selling lower priced products can affect the image of a luxury brand. Such is not the case here, since BMW protects its image by selling the MINI under another banner, with a unique logo and a dealer network independent from BMW’s.

The MINI personality, or «MINI Concept», articulates around driving pleasure: «Never has holding a steering wheel been so much fun». A wide range of accessories, some of which are very inexpensive, allow the buyer to customize his MINI, which in itself is another pleasure, because some form of exclusivity is one the attractions of luxury.

Its selling price starting at more than $ 25000, MINI is a luxury car, popular that is, not upper end. A form of luxury accessible to a large number of middle class people, sufficient to give one pleasure, without making a hole in one’s wallet. Obviously, it is beyond the reach of the poor. Some may accuse me of using the term «accessible» for a car sells for $ 25,900 and more. As absurd as this may seem, $ 25,900 is a price that most vehicles offered to the middle class today can reach, indeed exceed, except for some sub-compacts.

The brand’s personality, its image and its correspondence with the prospective buyer’s self-image may influence the choice of a vehicle. The values of society and the dominant concerns of the moment can also promote the adoption of a vehicle, for instance, the high price of gasoline and the hype surrounding the Kyoto Protocol are positive influences for the purchase of a vehicle featuring lesser consumption and pollution levels, such as MINI.

Boxing Day

In anticipation of my presence on RDI en direct Wednesday, December 26, I perform a mini-quiz on Boxing Day; you may answer up to 6 PM Monday, December 24. I hope many of you will participate. It will be my pleasure to comment on the results with host Louis Lemieux. If you have any comments about this issue, you can send them to me at benoit.duguay@gmail.com