Note from CEO

Hello Everyone,

Holidays are around the corner — a time for eating, drinking, celebrating, making merry, and spending… Sometimes, though, not so judicially! Recently, I was a participant in an interesting discussion on Planned Obsolescence and could not resist sharing some thoughts on it (at the risk of being a Debbie Downer):

As we probably all know, consumerism originated in the US a long time ago in order to increase sales and help grow the economy. Having perfected the art of selling and manipulating the minds of humans, everything has become disposable for some companies. This strategy, today, can be seen all around the world.

As an example, to maximize profits, light bulb manufacturers in the year 1925 collectively decided to manufacture only low-quality, short-lived bulbs. Previously, bulbs lasted for about 2,500 hours, but after 1925, new bulbs in the market were designed to last only 1,000 hours. With reduced lifespan, demand naturally rose, and sales increased. These companies sold poor-quality bulbs at the same prices, with reduced lifespan reaping profits at the customers’ expense. 

More importantly, the industry learned a new trick… how to make money by lowering product quality. The companies that formed this profit-driven alliance became known as the Phoebus cartel and their tactic of intentionally lowering product quality is called Planned Obsolescence.

This indeed is a trap. In simple words, it means intentionally designing products to fail or become outdated so that customers are compelled to buy new ones.

If companies want to ensure billions in profits, they must make their existing customers keep coming back for more. What’s more is that most products today are designed in the same way! For example:

• Earlier, TVs lasted for twenty years. Now, LED TVs start showing problems in five to seven years.
• Today, we have the technology to make durable blades that can be reused for thousands of shaves. But no well-known company is interested in making such blades because it would reduce repeat purchases. If old products are selling, why make new ones?

I am sure we all have lots of examples. This twisted business tactic of Planned Obsolescence led to ‘Use-and-Throw’ culture.

 • Clothes wear out… throw them away.

 • Shoes get worn… throw them away.

 • Laptop stops working… buy a new one instead of repairing it.

 • Iron broke… buy a new one.

 • The mixer stopped working…buy a new one.

Planned Obsolescence also has a younger sibling, called Perceived Obsolescence.

Here, it’s subtly implied that “Your car is outdated; thus, you are now outdated.” Marketers deliberately instill feelings of disinterest or inferiority toward older possessions. They convey through advertisements that if you don’t keep up with the latest product, you are no longer complete.

People who have a desire for prestige easily fall into this trap. Educated, wealthy individuals and their imitators from the middle class fall into this cycle, buying new items unnecessarily or out of compulsion. Sometimes for show, sometimes to impress, sometimes to satisfy their ego, sometimes under the guise of maintaining status… the buying continues non-stop.

The ability to question ourselves before every purchase, “Do I really need this?” has gradually become lost. As disposable income increases it brings consumerism with it ! 

This holiday season, but with awareness based on genuine need, use items responsibly, and don’t fall into the tempting trap of wastefulness. Don’t become another victim of Planned Obsolescence.

Have a great holiday, stay safe and have fun!!