What Does Peak Stuff Mean?

Peak Stuff

Investopedia / Theresa Chiechi

What Is Peak Stuff?

Peak stuff refers to the idea that a certain product has reached top interest and market penetration and cannot go any higher. The product has reached a ceiling. For example, if a product has reached so many customers that there are not enough new customers in the market to sustain growth, it is said to be at its peak.

Understanding Peak Stuff

The penetration of a market can be traced back to a few habits and decisions of the consumer. For example, consumers may decide to stop buying a product—it might be outdated, or they might have access to the product when they need it without having to own the product. Rentals are an example—people can rent cars, homes, clothing, and other services without having to commit to owning them. Alternatively, they may no longer be able to afford the product.

Other explanations for peak stuff are consumer trends and product advancements. People will not continue to purchase the same clothing or vehicles year after year because of fashions or preferences for certain brands. Trends also extend to food—dietary trends emerge each year that encourage people to eat more of one thing and less of another, and these trends can affect the sales of different types of food. Rapid technology advancements create new and improved phones, computers, and televisions each year, and people tend to want to purchase the latest version instead of buying the same product year after year.

What Happens When a Product Hits Peak Stuff?

When a product hits its peak, it implies that demand has fallen. This naturally results in lower prices because there is more of the product and less of a market in which to sell that product. Often, affordability is the reason for a drop in demand, and lower prices can help level out the market and pique interest once again. This strategy, however, does not apply to outdated trends and technologies.

Which Industries Are Most Affected?

As rentals become more prominent in car, home, and clothing industries, ownership falls. Car rentals appeal to those who don't necessarily rely on a car on a daily basis but need access from time to time. Renting a home is more affordable for many people than buying a home. Airbnb has quickly taken over the short-term home/vacation rental market because it can be cheaper than paying for a hotel room and more like staying in a real home. Many online clothing retailers offer luxury brand rentals for a fraction of the price it would cost to own the same brand clothing—customers can rent, wear, and return the clothes when they are finished.