Rise Of Consumerism And Its Evolution

KEY TAKEAWAYS

• Consumerism can be described as consumer behavior and attitude marked by a persistent desire for a better lifestyle, no matter how tough to attain. Businesses profit more when consumers spend more money, boosting the national economy in every way.
• The tendency to purchase excessive goods started in the age of industrialization. Consumerism has evolved through seven stages - Age of Frugality, Age of Industrial Revolution and Discovery, Capitalism and Colonialism, Theory of Imperialism, Theory of New Imperialism, Emergence of New Colonial Map, and Age of Decolonization.
• Introduction of Acts and Legislations such as the Sales of Goods Act in 1930, Consumer Protection Act in 1986, and 2019, gave a new dimension to the concept of Consumerism.

INTRODUCTION

Consumerism is a notion that focuses on a social and economic structure in which consumers are willing to spend money on items that are not necessary for their survival. Consumerism is an economic theory that contends that the interests of customers should take precedence in every corporate transaction. To put it another way, it's an ideology that values excessive consumption of material goods and services. In a broad sense, consumerism is defined as the public's fixation with commodities and services, particularly goods and items that they cannot afford. Through deceptive advertising, brands build demand for their products, enticing and persuading customers to buy them. It enabled them to profit. The consumerist movement began in the mid-eighteenth century. People began to spend more on material objects that were not necessities but rather a way of life obsession. In economics, consumerism is defined as a drive that causes a sharp increase in consumer spending. It became a fantastic tool to enhance the country's GDP and the global economy. At the same time, it also impacts the social status of people.

FURTHER DETAILS

HISTORY OF CONSUMERISM

The rise of consumerism can be traced back to the process of western colonization. Western colonialism was a politico-economic phenomenon in which various European countries explored, conquered, settled, and exploited vast swaths of the globe. Following the European discoveries of a maritime route around Africa's southern coast (1488) and of America (1489), the modern era of colonialism began around 1500. With these events, sea power switched from the Mediterranean to the Atlantic, favoring the newly formed nations of Portugal, Spain, Netherlands, France, and England. These nations conquered and expanded throughout the world through discovery, conquest, and colonization, spreading European institutions and culture.

In 1494, Spain and Portugal divided the territories of the world into two halves, with the eastern parts going to Portugal and the western parts going to Spain. Exploratory sea voyages were attempted by Marco Polo [Silk Route to Asia, 1271-1295], Christopher Columbus [1451-1506], Vasco da Gama [1460-1524]-the first European to enter India, Ferdinand Magellan [1480-1521], Francis Drake [1540-1596], James Cook [1728-1779] and others, many supported by royalty. The purpose of these exploits was to gain religious, economic, and political advantages. The strategy was to either occupy African and Asian territories or secure trading rights through Chartered Companies founded by royal decrees.

Over time, economists such as Lord Keynes, who pushed for the use of monetary and fiscal policies to encourage consumers to spend more to promote investment, production, and eventually employment, chipped in. Jean-Jacques Rousseau, a philosopher, thought that living a minimalistic lifestyle or adhering to only the most fundamental needs would keep society balanced. Another argument was that putting too much focus on savings will harm society as it will result in spending delays, which will stifle economic progress. So, it was argued that Marketing and advertising should be utilized to convince individuals to forego saving and even seek loans for the sake of consuming. With the end of World War I in 1918, the pace of production in the United States increased like never before. In 1920, compared to 1860, the rate of production was 12 times higher. People also spent a lot of money because of the exceptional surge in consumer credit and increased lending by banks in that decade. Even though these momentous events were brief, they provided consumerism with unique global notoriety in the 1920s.

EVOLUTION OF CONSUMERISM

Consumerism has evolved through 7 stages, which are-

1. AGE OF FRUGALITY-

During the 16th and 17th centuries, the world was largely agrarian, with a large majority of the population being poor and forced to migrate from place to place in search of a livelihood. Even though the entire world was divided into the Royalty, the land-owning Aristocrats, and the peasantry, 'Frugality' was a compulsion. Puritans, driven by spiritual principles, favored productive work for the benefit of society and frowned upon consuming more than necessary as an evil. Benjamin Franklin, the founding father of the American Constitution, repeatedly emphasized the dictum of being industrious and frugal to be rich, or "Beware of little expenses; a small leak will sink a great ship" (Shi 1985). The age of Frugality was the stepping stone in the process of formation of the concept of consumerism.

2. AGE OF INDUSTRIAL REVOLUTION AND DISCOVERY-

Between 1600 and 1800, England's population grew from 4 million to nearly 9 million.

Surplus agricultural production was shifted to furnish raw materials for factories. Industrial Revolution was ushered in by the invention of electricity, the steam engine, mechanized production, and the creation of Scientific Management. Increased prosperity necessitated the creation of new consumption centers. Sea adventurers like Marco Polo (Venice), Columbus (Italian), Vasco da Gama (Portuguese), David Livingstone (British), and others set out to scavenge the world, to establish colonies for the future economic exploitation. The goal was to assist their respective governments in establishing colonies for the procurement of raw materials, precious metals, and the sale of manufactured goods. The ultimate goal, however, was colonization and political supremacy over such regions. The creation of a substantial Middle Class was the net result of Industrialization and Consumerism. Consumerism focused on the middle class largely, thus the introduction of industrialization to the middle class led to the flourishing of the concept of consumerism.

3. CAPITALISM AND COLONALISM-

When Portugal, Spain, and the Ottoman Empire met in 1494, the first two powers decided to colonize Africa, the Middle East, and the Americas. After the age of discovery (exploration), supremacy was established over Africa, the Middle East, and the Americas. Britain, France, and the Netherlands seized control of Asia in the Second Wave. At the Berlin Conference (1884-85), part of the Third Wave known as New Imperialism was planned to partition Africa among Britain, France, Germany, Portugal, Belgium, Italy, and Spain [named the "Scramble for Africa"]. All of the aforementioned were connected to developing capitalistic hegemony to maintain European feudalism and eventually bring in capitalism through increased revenue flows. European nations strengthened their economic stranglehold over the majority of the world's nations through mercantile capitalism. This stage led to the popularity of the concept of consumerism.

4. THEORY OF IMPERIALISM-

Imperialism refers to the discovery of new trade routes, the construction of settlements or small colonies, trading posts, and missionary work. Its goals, in addition to God, Glory (religious expansion), and Gold, were economic expansion. Spain, Portugal, England, Netherlands, and France were the main players, with settlements throughout North and South America, Africa, and Southeast Asia. A single nation dominated a huge geographical area, with countries such as Spain forcing the local population into forced labor, but England maintained a policy of limited self-government, setting up Joint Stock Companies to rule in the colony as a proxy for imperialist power. While European imperialists used white supremacy to plunder underdeveloped countries for natural resources, the United States used annexation, purchase, and war. The discovery of new things increased the desire of people to get more and more. This led to the widening of Consumerism.

5. THEORY OF NEW IMPERIALISM-

Owning colonies had become a status symbol, and there ensued a mad inter se rivalry competition in which only the strongest could survive [Darwinism]. During this period, the French colonized Vietnam, and the United States occupied the Philippines and intervened militarily in Latin America [Cuba, Mexico, Nicaragua, Colombia, Dominican Republic, etc.]. This concept led to the competition between different people/sellers and made Consumerism stronger.

6. EMERGENCE OF NEW COLONIAL MAP-

Following Germany's defeat, the League of Nations' Permanent Mandates Commission examined the administration of the several colonies under German rule. German colonies were relinquished and dispersed among the winning states. It was determined that the 'Colonies' that were unable to govern themselves would be placed under the supervision of various European nations, which would be overseen by the League of Nations. It meant that the subjugated countries would not have the right to self-determination, prompting Arab nationalists to rebel, claiming that they had been promised freedom rather than tutelage. The Ottoman Empire was dismantled and the remaining territory was divided between England and France. During this time, significant amounts of crude oil were discovered in numerous Middle Eastern countries, piquing colonial overlords' interest in the region.

7. AGE OF DECOLONIZATION-

Between the First and Second World Wars, decolonization refers to the breakdown of colonial empires through diverse political movements led by nationalists in Africa and Asia. The purpose was to bring an end to Western dominance and establish self-government in the former colonial regions. The following are some of the factors that contributed to this transformation: Anti-colonial nationalism, mass mobilization, and mass politics. Colonial powers weakened as a result of the First and Second World Wars, allowing numerous regions, such as French North Africa and India, to gain independence. Also, there was a civil war in China, and incomplete decolonization in South Africa, Algiers, and Vietnam. Decolonization led to the enrichment of the concept of Consumerism.

LEGISLATIONS AND ACTS FOR THE PROTECTION OF CONSUMER RIGHTS

• Sales of Goods Act, 1930

1. Its applicability is contingent on the Parties' express agreement.
2. Certain terms and guarantees may be excluded by the parties.
3. A civil court can be approached to take corrective action.
4. The remedy is both costly and time-consuming.
5. The rule of 'Caveat Emptor' applies.
6. There is no provision for a class action lawsuit.

• Consumer Protection Act, 1986

1. The major goal of this Act, as its name suggests, was to protect the interests of Indian consumers and shield them from all forms of exploitation, including defective goods, inadequate services, and unfair trading practices.
2. It offered provisions for a seamless, quick, and economical procedure for resolving customer complaints.
3. It included all goods and services purchased or utilized by a consumer in any sector, including private, public, and corporate (unless the Central Government specially exempts them).
4. It laid down the steps for creating consumer protection committees at three levels: National, State, and District, to address consumer complaints.

• Consumer Protection Act, 2019

1. It operates without the necessity for a contract between the parties.
2. Parties cannot opt-out of any of the COPRA's provisions.
3. Only the proper Consumer Commission can receive a complaint.
4. The remedy is both inexpensive and quick.
5. The seller must be cautious under the “Caveat Venditor” norm.
6. A class-action lawsuit is possible.

CONCLUSION

Consumerism describes a society in which people define their identities by acquiring and displaying material goods beyond what they need for subsistence. The full-fledged emergence of consumerism appeared as an economic change that impacted and interacted with cultural, political,and social developments. Consumerism has a major drawback as it provides an avenue for the seller to defraud consumers.Consumers in emerging countries such as India are disorganized. Though, a few Consumer Organizations work to protect their interests. Consumer Protection Acts give these organizations authority and rights because they can file a case on behalf of customers.