We’ve all been there—holding on to that device, appliance, or even a piece of clothing, only for it to suddenly feel outdated, slow, or worse, broken when we least expect it. It’s almost like someone planned it that way. Enter Planned Obsolescence, a strategy that’s been silently shifting the dynamics of retail. While the idea of making products intentionally short-lived might seem controversial, this tactic has proven time and time again to drive consistent consumer behaviour, increased sales, and fast-paced innovation.
Let’s break down what planned obsolescence is, explore its types, see how it’s been successfully implemented, and finally, answer the all-important question: Should Indian retailers adapt it?
What is Planned Obsolescence?
At its core, Planned Obsolescence is a business strategy where products are intentionally designed to wear out, lose relevance, or become outdated faster than their natural life cycle. This doesn’t necessarily mean that the product will break down; it might simply feel “out of date,” causing the customer to upgrade to the newer version.
This concept is nothing new. In fact, the light bulb industry pioneered it. Thomas Edison’s initial light bulbs were deliberately made to burn out after a specific period, forcing consumers to buy new ones. Fast forward to today, and planned obsolescence has evolved into an entire industry practice that spans everything from electronics to fashion.
Pros and Cons of Planned Obsolescence
Pros:
- Increased Revenue Streams: Retailers can enjoy an ever-present revenue stream by ensuring customers return more frequently. Research shows that in industries like electronics and fashion, this model has driven both repeat sales and higher average revenue per user (ARPU). For instance, Apple’s frequent product updates fuel a robust ecosystem of loyal customers who feel compelled to upgrade to the latest model.
- Shortened Product Lifecycles = Faster Innovation: With customers continuously upgrading, there’s constant room for innovation. Retailers can capitalize on new trends quickly rather than sticking with outdated products that don’t reflect the latest market demands. Consumer electronics, for example, thrive on planned obsolescence, where regular innovations like better cameras or faster processors compel users to upgrade.
- Stronger Brand Loyalty: Customers who return often are typically loyal ones, especially when your products are designed to be more enticing over time. If the “new” model or design feels irresistible, the temptation is hard to ignore, boosting customer retention in the long run.
Cons:
- Environmental Impact: There’s a growing backlash against the wastefulness of products that are made to break or become obsolete. As consumers become more eco-conscious, brands that are too blatant about planned obsolescence may face criticism, protests, and even boycotts. The message that “we’re here to sell, not to last” can quickly alienate a chunk of your customer base.
- Customer Distrust: If customers feel they are being taken for a ride, the trust factor can plummet. It’s easy to create a negative public perception if your product’s lifespan is so short that consumers start to feel manipulated. Transparency, however, can mitigate this risk—explain the innovation cycle and avoid misleading marketing.
Increased Marketing Costs: While repeat sales are great, you might find yourself spending more on marketing campaigns to create the “urgency” for customers to upgrade. Without the right customer education and emotional connection, this could lead to customer churn rather than retention.
Examples of Retailers Who Have Implemented Planned Obsolescence
Apple: Apple’s iPhone is one of the most well-known examples of planned obsolescence. Every year, Apple launches new versions of the iPhone, often making the previous models feel slower or outdated through software updates. Apple also releases new features that aren’t available for older models, creating a need for customers to upgrade to stay in the loop.
Nike: Nike is another brand that cleverly integrates obsolescence into its business model. The company continuously releases new sneakers, apparel, and accessories with the latest trends, causing customers to replace their old items to keep up with the current fashion. This fast-fashion approach is amplified through constant collaborations and limited-edition releases.
Zara, H&M, and Uniqlo: These retail giants excel in fast fashion, a prime example of planned obsolescence in action. With new collections dropping every season, customers feel the pressure to purchase the latest styles, fearing that older designs will be discontinued. This strategy has led to the continuous flow of customers cycling through new purchases year-round.
Planned Obsolescence in Action: Flipkart SmartBuy’s Strategy
Indian e-commerce giant Flipkart applies planned obsolescence in its Flipkart SmartBuy range of electronics and accessories.
- Frequent Product Refreshes: New versions of power banks, chargers, and headphones are launched regularly.
- Pricing Strategy: Newer models are priced slightly above older ones, making upgrades seem more valuable.
- Limited Warranty Periods: SmartBuy products often come with 12- to 18-month warranties, signaling a replacement timeline.
- Flash Sales & Clearance Cycles: Older models are pushed into sales, reinforcing the idea that they are outdated.
Flipkart isn’t alone. Xiaomi and Realme also refresh smartphone models every 6-9 months while limiting software support for older versions (Counterpoint Research, 2023).
How AI and CRM Can Optimize Planned Obsolescence
1. Predictive Purchase Modeling
AI analyzes past purchases to predict when a customer might upgrade. Retailers can use this data to trigger personalized upgrade offers at the right time.
2. AI-Driven Personalized Upgrades
Machine learning tracks purchase history and usage patterns to recommend relevant upgrades. Brands like Apple and Samsung already do this through trade-in programs.
3. Dynamic Pricing for Obsolete Products
CRM tools can adjust pricing for older models, helping clear inventory without excessive discounts.
4. Loyalty-Based Upgrade Cycles
Retailers can offer exclusive discounts and trade-in bonuses to frequent upgraders, encouraging repeat purchases.
5. Sentiment Analysis for Customer Reactions
AI can monitor social media and reviews to detect frustration with frequent product refreshes. If negative sentiment rises, brands can adjust refresh cycles or offer alternative incentives.
6. Automated Trade-In Programs
AI-driven trade-in models allow customers to exchange old products for discounts. Amazon’s Exchange Offer for Smartphones calculates real-time trade-in values, making the process seamless.
Why Should Indian Retailers Adopt Planned Obsolescence?
The Indian retail market is evolving rapidly. As the middle class expands, disposable incomes rise, and consumer spending increases, Indian consumers are becoming more susceptible to the global trends that define modern shopping.
- Urbanization and Changing Lifestyles: As urban India becomes more tech-savvy and fashion-conscious, the desire for constant upgrades in both technology and apparel will drive demand for new products. Planned Obsolescence in India’s fast-growing tech, fashion, and appliance industries can harness this desire, creating a cycle of innovation.
- Youthful Demographic: With over 50% of India’s population under the age of 25, Indian consumers are naturally inclined to embrace trends, especially in fashion, tech, and lifestyle products. A focus on products that feel “new” or “improved” every season appeals to a demographic that is used to instant gratification.
- Economic Growth and Increased Disposable Income: The rapidly growing middle class is more inclined to invest in products that offer long-term value while also staying on the cutting edge. This opens up an opportunity for Indian retailers to implement planned obsolescence in a manner that fits the economic aspirations of their consumers.
- Rising Consumerism and Shorter Purchase Cycles: Retail trends show that modern consumers expect faster product cycles, and many are driven by a “fear of missing out” (FOMO). This creates an opportunity for brands to promote new features and innovations that compel customers to purchase more often.
This indicates that planned obsolescence, when executed correctly, could resonate with India’s upwardly mobile consumer base.
Conclusion
Planned Obsolescence may sound controversial, but in today’s competitive retail world, it’s a strategy that holds the potential to unlock vast growth opportunities. While the practice may not fit every brand, Indian retailers—especially those in the fashion, electronics, and home goods industries—are in a prime position to implement it successfully. By doing so, they can ride the waves of consumer trends, increase revenue, and keep their customers coming back for more.
So, should India adopt it? The answer, in short, is yes—but with careful consideration of sustainability and customer loyalty. After all, retail is a delicate balance—and it’s all about how you sell the upgrade.
