Nostalgia's Market Influence:; From Retro Trends to Revenue
BY SHUBHANGI SINGH/ JULY 27, 2024
The past has a powerful pull on today’s markets. As brands capitalise on nostalgic appeal, economic questions loom large. In an era of fierce competition, can authenticity prevail?
ostalgia is deeply rooted in psychological processes that influence human behaviour. According to the nostalgia priming model developed by Dr. Jannine Lasaleta, Dr. Constantine Sedikides, and Dr. Kathleen Vohs, exposure to nostalgic stimuli activates memories of past experiences, resulting in positive emotions and a sense of connection to the past. This creates a desire to relive or revisit those experiences. A 2012 meta-analysis by Zhou, Wildschut, Sedikides, and Chen confirmed that nostalgia is associated with increased positive emotions, decreased negative emotions, and improved overall well-being.
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Nostalgia, thus, plays a crucial role in the market, influencing decisions and driving revenue. We live in an age where digital transformation is propelling us forward at unprecedented speeds. Amidst this whirlwind there exists a powerful countercurrent – the surging market trend of nostalgia. This sentiment is being leveraged by various industries, such as fashion and film.
Nostalgia marketing works by evoking positive memories, leading to a sense of warmth and comfort towards the brand. Crawford (2023) points out that nostalgia marketing can be effective if done right. Triggering emotional responses through advertisements plays a major role in capturing consumer interest, and research shows that this emotional connection can result in strong customer loyalty (Holak & Havlena, 1998).
The nostalgia cycle refers to the period it takes for past trends and cultural elements to become nostalgic and be revived in popular culture. While it traditionally spans several decades, in recent years it has significantly shortened. Due to rapid changes in culture and technology, individuals are now reminiscing about eras as recent as the early 2010s. This accelerated cycle is driven by the constant evolution of digital media, social platforms, and consumer habits that quickly turn recent past into cherished memories.
By understanding and leveraging this shortened nostalgia cycle, brands have effectively connected with consumers who yearn for the recent past, creating strong emotional ties and driving revenue.
Further, younger generations, particularly Millennials and Gen Z, are driving the nostalgia trend, with a strong fondness for the late 90s and early 2000s. Their cultural influence and spending power make their nostalgic preferences significant in the market. Brands are capitalising on this by bringing back products, music, fashion, and technology from just a decade ago (Crawford, 2023). Consider the resurgence of iconic mobile phones like the Nokia 3310, reintroduced with modern features but maintaining their classic design. Similarly, fashion brands like Fabindia and Biba are re-releasing styles from the early 2000s, such as flared jeans and retro sneakers, to resonate with Millennials and Gen Z who have fond memories of that time period. Television shows and movies from the early 2000s are also being rebooted or gaining popularity on streaming platforms: the re-release of classic Indian TV shows like “Shaktimaan” (Khanna, 1997-2005) and “Malgudi Days” (Narayan, 1986-1987) on digital platforms has attracted both original fans and new viewers.By understanding and leveraging this shortened nostalgia cycle, brands have effectively connected with consumers who yearn for the recent past, creating strong emotional ties and driving revenue.
Amul was founded not for the maximisation of profits but to support farmers, and thus has established a very robust reputation for philanthropy and good deeds. Verghese Kurien, the brain behind Amul, was an important factor in shaping its marketing strategies.
‘Amul Dhoodh Peeta Hai India’ – a jingle that has touched thousands of hearts. India’s largest dairy brand, Amul’s ‘Utterly Butterly Delicious’ campaign with the iconic Amul girl has captured the Indian zeitgeist highlighting the potential of nostalgia marketing across diverse markets. What worked for this campaign was its populist appeal to nostalgia: it harnessed the deep connection between Amul and the Indian psyche. Amul was founded not for the maximisation of profits but to support farmers, and thus has established a very robust reputation for philanthropy and good deeds. Verghese Kurien, the brain behind Amul, was an important factor in shaping its marketing strategies. His philosophy of empowering farmers and furthering social welfare struck a chord with the consumers. It positioned Amul as much more than just a brand of milk: it became symbolic of Indian values and resiliency. This is the biggest connection to the ethos of the nation behind Amul’s phenomenal market share and global leadership. Consumers are naturally drawn to a brand that not only sells butter but also stands for something greater.
Source: Choudhary, A. (2012, October 16). Amul girl image. [Photograph]. The Economic Times.
https://img.etimg.com/thumb/msid-54872391,width-300,height-225,imgsize-27557,resizemode-75/.jpg
Though Amul certainly stands out as an example of effective nostalgia marketing and brand building, one must note how other types of brands can also ride very effectively on nostalgia. When there are shared cultural experiences and emotions, a brand can easily connect at a better level with the consumer and lay a solid claim in the market.
Source: Thaker, N. (2019). Data of shares of Amul. [Illustration]. Forbes. https://www.forbesindia.com/media/images/2019/Oct/img_122731_amul_products.jpg
Source: Khude, D. (2020). FMCG Stocks. [Graph]. Samco. https://www.samco.in/knowledge-center/wp-content/uploads/2022/01/dsfd.png
Coca-Cola India's promotion can be taken as an example to understand how brands capitalise off of consumers’ memories and feelings (Sachdeva, 2019). The company struck directly at a huge audience by incorporating famous Bollywood songs from the 90s and early 2000s in their advertising campaigns. The brand brought across the message that it is closely associated with Indian culture and tradition through its use of these iconic Bollywood songs. Music in cinema isn't just about melodies; it's about evoking moments. It, therefore, built a deeper connection with consumers by making them reflect themselves in the brand’s journey and values.
Nostalgia marketing thrives during periods marked by economic turmoil and societal disintegration, as consumers seek solace in familiar brands. Brands can leverage this emotional ground to make their relationship with consumers more comfortable and stable (Stein, (2024)
Further, nostalgia marketing thrives during periods marked by economic turmoil and societal disintegration, as consumers seek solace in familiar brands. Brands can leverage this emotional ground to make their relationship with consumers more comfortable and stable (Stein, 2024). This is because nostalgia can act as a coping mechanism – the powerful effect it has on emotions can help consumers feel at ease at times when everything else is uncertain. Brands exploit the emotional needs of consumers by supplying some sense of continuity and reassurance, making consumers connect with them on a deeper level (Holak, et al., 1990). It helps them in managing stress and anxiety through a reminder of better times.
During the tough economic times in the early 2000s, characterised by the burst of the dot-com bubble and the subsequent global economic slowdown, the instant noodle brand Maggi rolled out a campaign that focused on ‘2-minute noodles’ and how easily this kind of meal could fit into today’s busy family schedule. According to the “Case in Branding: Brand Positioning of Maggi” article published by Marketing Mind, Maggi struck a chord with consumers seeking convenience and low-cost products during hard economic times. The campaign, by zeroing in on advertisements that spelled out the role of Maggi noodles in daily life, showed how it could be cooked quickly and relished equally by the young and old alike. This ‘social nostalgia’ had a great effect and worked to maintain the status of Maggi as a trusted and comforting brand.
Additionally, the recent ad campaign by Cadbury, with its remake of its iconic ‘90s cricket girl ad, made use of elements within Indian culture that ran deep in the audience’s collective memory. Cricket is not just a game in India – it elicits strong emotions and memories. By choosing a very famous ad from the 90s featuring cricket, Cadbury managed to strike a chord with people who grew up watching cricket and associate numerous wonderful memories with the game.
Source: Indian Express. (2021, September 21). Cadbury vintage ad. [Photograph]. https://images.indianexpress.com/2021/09/cadbury-vintage-ad-new.jpg?w=640
The classic board game element too found its way back through the popular Indian game “Ludo King”. The game rode on the nostalgia for classic board games that were a staple before the advent of the digital information age. The readmittal of elements from classic board games reimagined onto a digital platform appealed to the sense of nostalgia for simpler times when board games dominated sectional entertainment.
These are not just examples of nostalgia marketing, but strategic moves that speak to deeper consumer behaviours and market trends. It demonstrates a broader trend of brands leveraging nostalgia as a way to set themselves apart in an increasingly competitive marketplace. As consumers are bombarded left and right by advertising messages, nostalgia works not only in the realm of creating loyalty but also in creating a distinct identity for the brand. This proves that innovation is important in nostalgia marketing. While the campaigns have to bank on nostalgia, there has to be an introduction of new items and reimagination of others to keep the audience engaged. In this way, nostalgia marketing is not merely about looking back, but about finding innovation to connect the past with the present.
While nostalgia marketing can evoke powerful emotions, it also comes with challenges. A key problem that arises is the overuse of nostalgia that can make brands seem outdated. Further, different age groups have different nostalgic memories making it difficult to appeal to everyone. This may leave younger consumers completely confused, especially where older references are concerned. Companies need to make sure that their campaigns look authentic or they may lose buyers’ trust. Moreover, sustainability matters, as there are many consumers who prefer eco-friendly products. In effect, brands must merge nostalgia with present sustainable practices to remain relevant.
Emerging themes will shape the future of nostalgic marketing. Personalised memories will become more prominent as companies use data to customise nostalgic experiences for individuals. This trend seems especially true for India, where more and more companies are using digital means to connect with consumers at a personal level. For example, Amazon India is sending out customised recommendations to users through their browsing and purchase history, reminding them about past interactions with the brand. Another exciting direction for nostalgia marketing in India is the role of Virtual and Augmented Reality. This technology offers new ways of immersion for brands to engage consumers in a nostalgic experience. VR technology is being used by Indian travel companies to give consumers virtual tours of destinations, so that sitting at home, one can relive some of their past travel experiences or explore new destinations.
Pictured: Illustration by unknown via Pinterest
Additionally, Titan, one of India’s largest watchmakers, launched an AR app that lets customers try virtual watches before making a purchase. This approach of immersive marketing can add value to the shopping experience and allow customers to interact with products in ways otherwise reserved for in-store experiences. The creation of memorable experiences for consumers will thus inspire engagement and loyalty. In the near future, VR and AR will continue re-creating sweet memories and motivating consumers to purchase in sectors like entertainment, fashion, and FMCG (Fast-moving consumer goods). It is the thoughtful alignment of nostalgic elements with today’s values and expectations that will keep on engaging consumers in pertinent ways.
Keywords
nostalgia, emotional connection, consumer behavior, digital transformation, innovation, brand loyalty, cultural symbol, virtual reality, augmented reality, brand identity, market trend, customer loyalty, emotional ties, immersive marketing
References
Abhinay, et al. (2020, July 26). Will Amul’s milk run win India’s consumption marathon?. A Junior VC.
https://ajuniorvc.com/amul-story-milk-cooperative-revolution-kurien-fmcg-startup/
Bansal, U. (2022). Nostalgic Consumers: A Study of the Impact of Nostalgia Marketing on the Consumers. Artha-Journal of Social Sciences, 21(2), 1-7.
https://journals.christuniversity.in/index.php/artha/article/view/3316/2224
Crawford, M. (2023). The Psychology of Nostalgia: How Brands Can Tap Into the Past to Drive Future Success. Journal of Marketing Trends, 45(2), 123-135.
Gangwar, A. (2023, May 26). Emotional Connections to Economic Success: Unraveling the Nostalgic Powerhouses. The Smallcase Newsltetter.
Holak, S. L., & Havlena, W. J. (1998). Feelings, Fantasies, and Memories: An Examination of the Emotional Components of Nostalgia. Journal of Business Research, 42(3), 217-226.
https://www.sciencedirect.com/science/article/abs/pii/S0148296397001197
Stein, J. (2024). Nostalgia Marketing in the Modern Age: Bridging the Past and Present. Marketing Insights, 56(1), 47-60.
Sachdeva, S. (2019, May 23). Coca-Cola India: Spreading Happiness with Innovative Marketing Campaigns. Marketing Mind.
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