Keisha Sarpong, a 30-year-old nonprofit worker and TikTok fashion influencer, recently needed a new work bag. She wanted something professional enough for the office, stylish enough for happy hour, and spacious enough for travel. Her search highlights a major shift in consumer behavior: the demand for multipurpose goods.
This isn’t just a trend limited to bags. Consumers are seeking out air fryers that cook multiple dishes, makeup that doubles as skincare, and ceiling lamps that function as smart projectors and speakers. This ‘3-in-1 economy,’ as some are calling it, is driven by a confluence of factors: rising prices, busy schedules, and a growing obsession with efficiency.
The economic climate plays a significant role. Years of inflation have made consumers more budget-conscious, and businesses are often reducing product sizes, leading to a perception of less value for money. A recent EY survey found 77% of respondents actively changing their buying habits to find better value. Multipurpose products offer a solution, allowing consumers to get more for their money.
This trend isn’t limited to any one demographic. Kristen Jauregui, a 35-year-old payroll specialist, echoes this sentiment, emphasizing her mindful consumption and preference for multifaceted products. She’s even switched to solid shampoo bars that serve as shampoo, conditioner, face wash, and body soap – saving money and space while traveling.
The ‘lipstick effect,’ the tendency to indulge in small luxuries during economic downturns, is also at play. Consumers may cut back on larger expenses like vacations but still treat themselves to items perceived as offering great value. Multipurpose products perfectly fit this need, justifying seemingly non-essential purchases.
Beyond economic factors, the blurring lines between work and personal life, particularly since the pandemic, have fueled the demand for cross-functional products. Gen Z and millennials, prioritizing work-life balance, are particularly receptive to products that seamlessly transition between different aspects of their lives. This is evident in the popularity of athleisure wear and multifunctional makeup.
Finally, the desire for self-optimization is a powerful driver. Smartwatches that track health metrics, Oura rings providing biometric data, and other wearable technologies exemplify this trend. Consumers want to maximize every aspect of their lives, and multifunctional products help achieve that goal.
Businesses are recognizing this shift and adapting. Offering multipurpose goods can broaden their customer base, build stronger relationships with existing customers, and provide a buffer against economic uncertainty. By catering to the desire for value and convenience, companies can thrive even in challenging times.
In conclusion, the rise of the 3-in-1 economy is a complex phenomenon driven by economic pressures, lifestyle changes, and a cultural shift toward optimization. As consumers become increasingly discerning and budget-conscious, the demand for versatile, multi-functional products is only expected to grow.
