A growing social media challenge is shaking up an already embattled retail market in Australia.
The so-called ‘no buy’ challenge involves people pledging to stop spending money on non-essential items for a period of time – such as a month or a year.
According to Dr Amanda Spry, a senior lecturer of marketing at RMIT University, the new trend’s emergence comes from a mix of minimalism, anti-consumerism and financial well-being philosophies, which have all become popular over the last decade.
“Think influencers such as Marie Kondo and 'The Life-Changing Magic of Tidying Up', as well as the Financial Independence, Retire Early (FIRE) and Slow Fashion movements,” Dr Spry explains.
“More recently, 'deinfluencing' (influencers deterring followers from buying overpriced or underperforming products) and 'underconsumption core' (consumers are educated about using up what they already own and buying only what they truly need) have taken hold on social media.
“Specific 'no buy' challenges have popped up across Reddit, YouTube and now, Instagram and TikTok where people can document their ups and downs on this journey and post this as content.”
This comes as retail spending across Australia is softened amid heightened interest rates, stubborn inflation and uncertainty over the economic outlook.
In November 2024, retail sales lifted by just 0.8 per cent compared to the month prior. This increase is lower than the 2 per cent lift in sales from October to November in 2023.
Moreover, the ‘no buy’ challenge will affect some retailers more than others, Dr Spry says. This depends on the categories they operate in, as the challenge focuses on eliminating non-essential purchases. Some of the key trending categories being focused on include clothing and footwear, beauty and personal care, food delivery services, entertainment and hobbies.
At the same time, Dr Spry says that some consumers are celebrating milestones in the no buy challenge with shopping hauls that they share on social media, likely altering spending patterns.
“Impulse and convenience purchases are also likely to decline for consumers participating in this challenge, which could impact retailers who encourage this type of spending, for example, with placement at physical and digital check-outs,” she says.
“Alongside what consumers are not buying, retailers may notice changes in what consumers continue buying. Consumers participating in no-buy challenges still buy essentials and may opt for multi-use over single-use products, items that have longevity over those that are trending, and quality over quantity that favours durable purchases even if those are initially more expensive.”
The challenge may also shift consumer participants towards practices like repairing and upcycling rather than disposing of and repurchasing their possessions, Dr Spry added.
“Retailers and service providers in this area may enjoy an uptick in demand.”
For those retailers that are affected, Dr Spry recommends riding the wave and avoid going against the grain.
“There is an opportunity for retailers to step into their social and environmental responsibility and show their customers support for participating in this challenge,” she says.
“For businesses with subscription models, make 'pause' options as easy as possible for consumers to come and go from these services as their personal circumstances change.
“Highlight no buy-friendly alternatives that have multiple uses or applications, or that are durable or timeless - such as capsule collections of clothing. Include a wish list function and move away from urgent, limited-time only marketing messaging.”
Retailers should also find valuable and unique ways to engage with consumers and reward their loyalty that are not just about purchasing. Increasingly, Dr Spry says, consumers are being incentivised to write reviews, for example.
She also recommends integrating educational and storytelling content that aligns with the no buy challenge – such as tips on extending the life of your products and trade-in or resale programs.
Looking ahead in 2025, Dr Spry says its difficult to predict how this ‘no buy’ challenge will evolve. Cash rate drops can put money back in the pockets of people who have mortgages, but they can take money away from savers. The cash rate will also fall as the economy slows down, which is associated with less spending.
“But for an increasing number of people, not spending is a necessity – it's not fun or a personal challenge they can opt out of. This raises the significant question of the privilege of choosing to participate in the no buy challenge,” Dr Spry says.
“While for some it can be a self-improvement project or even a popular content theme for social media, it comes from a place of financial security where cutting back is about mindfulness, not survival.
“Participants likely have a financial cushion and own what they need to look after their family, do their jobs and live comfortably. They may find the ‘no buy’ mindset empowering, whereas for others with a history of financial hardship, it's exhausting.
“It's important to acknowledge that not everyone can choose the ‘no buy’ lifestyle, even temporarily, and to look at what other financial education and wellbeing resources can be provided.”